Regarding the Kelso....W&T pending deal. From the Good Oil...

Regarding the Kelso....W&T pending deal.
From the Good Oil Presentation:-

"Transaction Highlights."
"Ajax is well capitalized with a flexible capital structure and substantial dry powder to optimally develop its
leasehold position."

I like the "substantial dry powder" bit. Reflects James military training.
I think the end result will see AZZ with leases not to far away from where they are now, with production and infrastructure.
Hooked up with another company, maybe, and not the operator.
This will give the tax advantage and accommodate the lack of experienced directors.
Possibly still with access to the Macquarie $200M facility.(And a blessing from Macquarie that it can be used for development}
James is a wheeler and dealer , and takes pride in it.
On paper, when the deal numbers are crunched, the value per share is over the dollar mark.(Allowing for total buy back of the convertible notes)
But the market will not reflect that in a long time, if ever.
On my scenario, I envisage a share price around 50 to 70 cents in the next 12 months.
Cheers IFINO







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