jka have actually agreed to sell 15% somaliland for $15m 3m upfront on govt approval and 12m in progress payments.
with the con note they had another 5.5m (I know it has been cancelled)
so $8.5m for hw3 and other expenses
mr poshman suggests an RBL for aje development
As a jka holder, the way I see it is that we get 1 capped price well with a low chance of success and cash.
sure, IF they strike oil, great!
but if not, TPT have 7.5m cash and how will they fund drilling any other targets? sure JKA may have some funding issues, but I think factoring a P&A well in morocco, TPT only have cash in the bank, and to lose 53% of a low risk company for a LOW CoS capped price well and some cash
I need not remind JKA holders what can happen on a capped free carry well, (COE on HW3)
I see worst case: they merge, drilling issues in morocco eats up all tpt cash with a final P&A nail in the coffin,
As mentioned on here the other day, I've also been burnt by POTENTIAL and UPSIDE before
TPT Price at posting:
21.0¢ Sentiment: None Disclosure: Not Held
