IT all comes down to CNE, page-177

Well after giving it considerable thought it seems to that simplest and cleanest way forward is a joint approach by FAR and CNE to waive their pre emptive rights in return for a considerable free carry on further drilling / development, preferably with some type of ratchet clause in relation to future resource upgrades.

In FAR's case that would not only immediately free up our current cash which could help us retain a higher WI in DJ and /or put any further CR's / debt required for development out to the end of next year at the very least , it would also avoid any debt or CR involved carrying on with pre emption.

Basically a dilution free indirect way to obtain value from our Senegal leases , retain our WI and end up with a motivated partner.

Ditto more or less for CNE ..

For WPL it would give them their 35% WI plus operator status and mean the free carry costs could be spread out as opposed to having to cough up a lump sum now making it a bit more palatable for their shareholders.


For me it would be a very good result depending largely on how much free carry value could be extracted from WPL.


Cheers Whisky