Thanks for the excellent evaluation mrposhman. I could not agree...

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Hangseng

13,367 Posts.

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05/06/15

06:49

Post #: 15416979
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Originally posted by mrposhman ↑

Really really disappointed with this outcome.

The recent Panoro presentation suggested that capex to first oil was $149m which would have been about $10m for JKA. They already paid $4.5m (of which it seems they they have accounted for this as a loan and have received $3m for it, sounds ridiculous to me) and therefore only had $5.5m to fund.

Are they seriously suggesting that ii's and an SPP would not have financed this at the same price as Cornhill. 2c price with a free attaching option at 2c conversion price.

I would have bought into that as I still think Aje is a great asset to have. To dilute the company AND Aje at what could be seriously greater than 50% then this is crazy.

There must have been alternative options to this financing that were more feasible. I just cannot buy into that it took 3 months to do a very cheap dilution and essentially writing off the bulk of the value of Aje for "perhaps" $8.5m.

Looking at the NPV value to Panoro from their March presentation they reckon just the Phase 1 development (which Aje's $5.5m would have funded), the NPV (undiscounted) would have been worth circa US$60m ad an NPV10 of circa $40m.

Thats a 12% interest, so looking at Aje's 5% interest would have been valued at circa $16.4m to $24.5m and yet we sell it for $8.5m along with pretty much all of the upside.

Would have much rather they had doubled the shareholding in the company at 2c allowing current investors to buy alongside.

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Thanks for the excellent evaluation mrposhman.

I could not agree more. I would have gladly increased my holdings at 2c a share with free option...and taken all I could have gotten hold of.

Can't help having a(nother) feeling of being totally screwed over by slippery O&G Disallowed salesman. Certainly be my last entry into any O&G company for quite a while.

Interesting aspect is the $0.13c options for may 2016 expiry. This and directors buying. What are we missing over what seems to be a deal that has shafted shareholders completely.

JKA Price at posting: 1.3¢ Sentiment: Hold Disclosure: Held
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