I also think they should consider selling Aje, last transaction was 5% for $25m - so you could guess its worth that. That would leave Tunisia, Tanzania, NW shelf and Somaliland 5% option and $35m cash ( or 9c per share cash ). Onshore is easier and cheaper no doubt - the SWE model is better for small cap oilies than the PVD, PCL, FAR, TPT, NEN models. Generally they end up getting nuked as they cant write the ongoing cheques.
However the oil business is all about finding and developing oil fields - and to give up 5% for Aje may not be the right decision. Though at this stage we do not know the development costs and the JKA funding requirement to get their 500 BOED. Thats about $A15m revenue a year - if you use TAP as a guide they have a 15000 BOED in shallow water that cost $300m to develop = $15m cost for JKA. Its a stretch to say that costs are similar etc as Aje is deeper water etc but you have to use some guideline. So at least $A15m to make about $A15m a year revenue - say $5m net profit, maybe they should hold.
At least the cash flows would enable the business to potentially grow. However to do this they may need $15m, now where would that come from....
