Hi KastinFingers crossed re Tunisia deliversI did not want to...

Hi Kastin

Fingers crossed re Tunisia delivers
I did not want to say higher than +200m but as you say it could well be $600m ... and then Jacka needs $90m cash

That is a bucket load of cash for a small cap so there will be a massive dilution for existing shareholders.

There is also Somaliland on the horizon and that could be a lot more than $90m with 30%, we could be looking at +$200m cash required from Jacka.

These are huge sums of cash for a small cap even for some junior mid-caps.

Jacka needs to flip an asset. Institutional investors will want to see Jacka proving they are prepared to sell assets and not all the time going back to the market for more and more cash. This is Empire building not trading your way up like Tullow etc.

Over the 12 months from Q4 2011 Jacka did "4" fund raising exercises totalling c$22m.

They cannot keep on doing this, intuitional investors don’t like this at all, it does not inspire confidence in management planning ... and with all these fundraising Jacka had no choice but to get the money.

If this Monday’s announcement is a placing at a cheap price (below $0.20) Institutions will not be impressed at all. And some day this will back fire on Jacka with no time to sell an asset and might be forced to surrender it or a “massive dilution” for not funding their way.

Better to sell something and to prove to investors that Jacka has delivered / realised an increase in asset values and thus not also 100% dependent on the investors for cash.

Then next year go to the market and don’t raise $5m or $20m or $50m, but +$100m. There are a lot of serious O&G funds out there who do not look at anything below +$100m.

By the way thanks for the banter … this is a good board, and who knows who is right. In fact could be right today and wrong tomorrow because we don’t know what is going is on behind the scenes.