What I would love the JKA BOD to do (and they may need to wait until after the takeover is rejected - hopefully) is approach DGO and offer them an additional 5% of HW (may have to also give them the same for the whole Bargou permit, but may be able to get away with just HW).
If just HW they may only be able to get something like $7-8m IMO, that's buying around 5.6m barrels of resources for $7-8m, that's a decent price for DGO. They would get something like a well carry upto a gross cost of $30m (worth $3m to JKA) and then they would get $4-5m in back costs.
IMO this is the best funding solution for JKA, as at least it gives them the upside exposure to these assets (which is way above a market cap of $37m that the takeover is assuming) whilst also avoiding the high risk Morocco. I don't mind them having the high risk, but prefer to have the lower risk monetised before then, in order to reduce the overall business risk if a high risk well were to fail. That's why I like their Somaliland and Tanzania assets, as they are on a longer term timeframe.
If they managed to get the above, and had the convertible loan note and also gained access to an RBL, then there would be no-one talking about a poor cash position.
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