The need for further ST funding has been aired a few times on HC recently and now its in the latest Paterson broker report out last Fri and posted by Adamb1.
It would seem to me that if events unfold JKA will be able to have its 71.3m 20c Dec options (JKAO) converted and posssibly underwritten again by Patersons to bring in a guaranteed $14m.
sp will have to be over 20c consistently around early Dec. One of the catalysts for this will be the expected upgrade of Aje resource around December.
"Potential Aje resource upgrade: An update of the Aje project (offshore Nigeria) is expected by year end which could result in a material resource upgrade from JKA s current estimates (200mmboe gross, 10mmboe JKA share)."
With 3 broker reports out i think JKA has been doing everything it can to get the options into the money.
If this tactic is successful JKAO conversion will make life quite comfortable for JKA whatever happens with Hammermet in Jan.
If JKAO are not in the money I don't think Jacka will find it too hard to raise a few $m in other ways, but at a lower price. We may find out more from the 1/4ly in a few days.
JKA Price at posting:
19.0¢ Sentiment: ST Buy Disclosure: Held
