Email from Cath and Ian

Emails from Cath and Ian - received by a FAR FB group member:

Ian replied.....

The company will update the ASX when it has something material to say.
Until then rest assured the mediation process continues which we have told the market provides for a three month resolution period.
If there is a breakthrough we will inform the market.
Until there is an outcome we cannot report.
We will certainly not be updating the market on a piecemeal basis during this process.

In relation to the share price, FAR is very aware of the market situation.
Short selling activity has increased recently which we cannot do much about.
FAR is monitoring its share register very closely.

Regards
Ian
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Dear Ben

In addition to Ian’s comments may I please add that I have returned from Dakar and UK this morning following meetings with both Senegalese Gvt (at all levels) and the partnership.

Firstly, I share your concern about the share price and believe me, we are watching our trades very closely and continue to do so. If we have any evidence (not just a hunch) that there is unlawful trading, we will be surely taking action.

Secondly, the Gvt has expressed extreme disappointment with Woodside for making statements in the press and have continued to request that we don’t talk to the media. At this stage, there is not actually anything more for us to say. We are currently in dispute with COP as they have not sent us all of the information required to buy COP Senegal BV on the same terms and conditions offered to Woodside. Its baffling to us why they would care where their US$430M comes from and why they would not give us this information. It’s more baffling why they would not just give us the information, set the pre-empt clock ticking and at least have surety over the completion date.

The Joint Operating Agreement has a very clear dispute resolution path and we are on it. FAR is not exposed to any legal action unless we choose to take this to arbitration. Before you panic, we are a long way from that as we are, as per the JOA, seeking an amicable solution with COP. This pre-empt opportunity is a current priority and one that FAR is taking very seriously but it’s business as usual as far as the project goes.

There is nothing to get worked up over here. We have not seen all of the terms of the sale – for example, who would contemplate buying a company without seeing a balance sheet or contracts entered into by the company? This is very standard in the oil industry and for some reason, COP is not behaving in a “normal” manner.

As you will have seen, we have made our statement on commerciality and released the increase to the SNE field size in the last four weeks. This is the culmination of an immense amount of work by FAR and our partners in what is a 21 month period since discovery. The field is world class. FAR has 15% of the field and we are fully funded for our committed work program. We could do with a kick in oil price but that’s something we can’t control. The JV had a meeting last Friday to discuss the final well locations for the forthcoming drilling program and once formally agreed we will announce. We are currently finalising the well design, rig selection and drilling management services. The JV should be back drilling early Nov which we are looking forward to.

Thanks for your support of FAR, if you have any further questions, please don’t hesitate to ask.

Cath