Did anyone else notice the revised capex expectation to first oil?
Slide 7 shows capex to first oil being $149m, at JKA's last quarterly stated $220m which I assume was the estimate prior to the drop in oil prices and the subsequent drop in rig rates etc. That significantly changes the goalposts for JKA.
At $149m they would need to provide 6.7% of this so around $10m of which they have already paid $4.5m so leaving a funding shortfall of around $5.5m.
An additional $120m due for Phase 2 which would be an additional $8m for JKA but not for at least 18 months (timeline is start of 2017 for Phase 2, which should be able to be funded from cashflows from ops once this is up and running.
Taking oil at say $60, taking off Opex of $22 and royalties of $10 (pretty sure they will pay 16.5% royalty) so that leaves cash from ops of around $28 / bbl which for their 500 bbls per day would be working up around $5m / year so most of the future funding would be generated from ops (assuming G&A stays low).
JKA Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
