Kastin and all, unfortunately we have a major problem. That is...

Kastin and all, unfortunately we have a major problem.

That is the danger of off-shore, when it goes wrong it can be spectacularly bad. So now is a critical time for Scot Spencer and how he manages the company affairs. I am not blaming him, but he knows Jacka has a major problem now.

There is no production on the near term horizon for Jacka. Even Nigeria will not produce income for 2 or 3 years. And most NB is; where is Jacka going to get the cash. Last week I saw the Lekoil CPR for this project and the Capex to INITIAL oil production is $500m and another $500m if they want to do the gas.

Where is Jacka going to get +$25m.

If they don’t get the $25m, they will be in default and will lose 100% of Nigeria (for nothing).
I would love to keep Nigeria, but this is the reality we are in.

The same applies to Australia and Tunisia, Jacka could go into default and also risk losing 100% of these assets as well.

Jacka needs news about CASH that will raise the market cap and thus facilitate raising more CASH.

A Tanzania farmin will not do it because little or no cash for Jacka.

And this news has to be about selling something for CASH, even if deferred, say Dragon pays 20% now and the rest of the cash over 2 years to help cover Capex in Nigeria.

There is nothing wrong about trading / selling assets, this is the nature of the oil business, in fact this is the sign of a good business.

If Jacka goes to the market for cash again without selling an asset, we are all going to get slaughtered with the placing price, and next will be to remove Scot Spencer as Executive Chairman, drop him to a consultant for vision … and nothing to do with execution.