LEK also are planning on raising $100m (they are going through the book build process), with $20m of that related to Aje development.
Roughly what I was expecting, maybe slightly on the higher side, maybe due to either deepening Aje-5 (due to synrift from OPL310) or maybe drilling an alternative well (though then this seems quite cheap).
$20m for Lek's 16.3% paying interest, would mean JKA would need just over $6m to get Aje into production. Interesting to note that LEK are also aiming to pay for their acquisition costs of OML113 using debt financing relating to an offtake agreement.
Would make sense for JKA, if they could jump in and join LEK with something like this also (probably need to be the same offtake partner), but if they are happy to stump up $28m for a 12.2% revenue interest for LEK, then surely they would be happy to stump up $6-$7m for JKA for their 5% interest?
The less they have to raise from the market the better.
JKA Price at posting:
7.2¢ Sentiment: LT Buy Disclosure: Held
