Strauss raised an interesting point re: the need to issue...

Strauss raised an interesting point re: the need to issue further shares to fund Hammamet West drilling.

Thought i'd re-post my response as i think there is a good chance mgmt won't need to or at least not much.

Interested to hear other opinions as it will probably represent the only obstacle for the sp leading into spud.

re: JKA and a raising.

You may or may not be right and i wouldn't put my lefty on either scenario.

Consider the following.

- cash at bank $5.9M (last qtr)
- estimated drilling & testing for HW ~$8M (JKA's share)
- 71.3M listed O's @ 20c = ~$14M. This is the key imo. I am of the opinion they will get the sp above 20c and realise the $14M of equity that comes from exercise. They've always had a strong r'ship with Patos and have several brokers covering now, so wouldn't surprise me in the least to see Patos underwrite the O's (even slightly below market) as they did with the last lot come expiry.