Hi psi81Whilst I don't disagree that JKA is significantly...

Hi psi81

Whilst I don't disagree that JKA is significantly undervalued one of my concern is that the market does not understand production sharing contracts and in particular cost recovery oil.

My understanding is that JKA spent about $15 million in HW# and in the event of production will recover the past costs ahead of any profit oil.

Both Cooper and JKA are saying that the resource is above the 8-10 million threshold required for the field to be developed so in my view should not be discounted by the 50%.

On that basis and assuming no profit oil at all then the value would be $15 million discounted to when production occurs. Discounted at 10% for three years would bring this down to $11 million.

I don't know the fiscal arrangements in Tunisia but if you go back to Dave Maxwells commentary on the drilling of this well he was talking $10/bbl.

What I have previously posted is that we need JKA to arrange for a brokers report so that the market can be better informed.