CNE, page-24

Farjock ....... pj is dead right the market will price the contingent resource plus the 2P proven resource regardless of production, this will equal round the $2-$5 pbo for contingent and round $7-$10 pbo for 2P proven resource also when companies TO another E&P company they are basically purchasing the proven resource, I havent checked recently (in fact not for round 12 months) but if you check the original 330 2C for SNE you should find that it will be round the $2-$3 mark however we have recently diluted the SP somewhat but on the plus side FAR has released the up grade so am unsure were we would sit right now but would guess the market has not priced in the latest upgrade.

In researching into the expected prices for a TO I found that 2012/2013 the M&A activity was pricing 2P resources round $15-$20 pbo however when the poo started to collapse this price dropped, the last M&A that I looked at the prices were round the $7-$8 pbo for mid 2015 but just what management plus the 20 major holders consider a fair price for what FAR should get PLU the prophets is a very interesting question.

HKP