Using recent asset sales (particularly in Nigeria) they should be able to sell the 2 assets they have proven (Aje and HW) for around cash proceeds of around 11c.
I also feel they should have no problem getting an RBL facility for Aje and therefore get this into production with little capital.
I feel the BOD saw the share price, and felt a 56% premium was ok (bear in mind that both of our main directors - Scott Spencer and Bob Cassie - will both have a job over this) and being as they keep their jobs (probably at a higher salary due to increased business size), then its a no brainer for them at this point so I see the BOD acceptance as a bit of an irrelevance. If this was a cash takeout by a bigger company I suspect that the takeover would have been kicked away, don't underestimate people looking after themselves.
As I have said, I think cash (which has predominantly been the reason why JKA are apparently being sold so cheap) is not as big an issue as before.
Bear in mind that the price per 2C resource at 21.5c is just $1.21 / barrel and even at 24c is only $1.36. Do you think that's a fair reflection of value in the business?
Aje could be producing in less than a year.
Call me a sceptic but that's mu opinion and feel Spencer and Cassie have been swayed by the promise of a job (perhaps as I have said at a higher salary).
JKA Price at posting:
8.6¢ Sentiment: LT Buy Disclosure: Held
