Ann: Jacka completes US$12 million farmout of Som, page-3

re: Ann: Jacka completes US$12 million farmou... Whilst I have been critical in previous posts of small E&P companies farming in to undertake drilling and also drilling offshore, what is missing in the recent discussion is that JKA have made about $16 million and retain a 5% option in Sommiland

Given that any discovery may be a long time off it was the best call.

Shareholders should be encouraged by the assessment by Cooper that West Hammenett is likely to be economic based on the revised resource assessment. Whilst I suspect that the assessment is very conservative, what is important is that all past expenditure will be cost recoverable under the PSC. The past expenditure is a contingent asset to JKA. It is not monies lost if the field is developed.

I am not fussed by the resource estimate. The size of the field will reveal itself in time. We just need to get to the development stage. As a minimum the value of West Hammenet is the discounted value of past costs multiplied by the chance of development.

What was staggering in one of the press releases was that they lost 30 tonne of drilling control material . No wonder it was hard to recover and make the well flow. It says a lot about the porosity.