rig secured for offshore kenya block l9, page-4

Hi Dknow, and others

Help out where i'm wrong but on the number provided in the article, I have serious concerns about the capabilities of this FAR team.

Referring to Senegal - Let say CAIRN can procure a drill ship for $500 000 a day and lets say it take 120 days to drill a whole (i think that is pretty generous) - that would equate to 60mil. - I work on basis that 500 000 p/d is inclusive of man power, fuel and consumables.

FAR has given of 60%(or is it 65%) of its assets with no guarantees at the end in return for a single hole. My reading of the announcement is that the single hole is capped at 80mil. If something goes wrong and half way through process drilling is halted or slowed down which pushes drilling out by a month or two, Far is in for the balance of expenditur and in the red. So much so that they would either have to do cap raising or dispose of their remaining interest in total.

By the look of it these guys have not negotiated a fixed outcome at a fixed price (1x completed hole, regarless how long it takes, for a 60% interest)We could end up with nothing to show on the Senegal deal plus incur additional expenditure for overrun cost that could kill the company on Senegal alone. This is why they recently posted that Cairn avg cost for hole is 65mil odd and they're confident that the senegal hole will be drilled within the 80mil cost estimate. What the hell are these guys on about. Are these more smokescreen?? No wonder the market did not even respond to the announcement. Is the same sort of shite going to be dished up for the Kenya block.

And then they ask for millions of options. How many actual share does these guys hold which they actually paid for. I'd say nothing - which is the clearest indication that they don't do what they do for investor intertest (thats why they hold nothing but would rather grab benefits from something which cost them nothing and hoping the gamble goes their way but if not, they walk away and start working on the next scheme)

Getting seriously concerned and think i'll sell out as soon as i claw back the tens of thousands i'm in the red at the moment.

Am I reading this right.?? Please help out.