I think I have read every detail that has been published by the parties and I don't think there is any other way to make sense of it. We know that the lease of the drill ship that was used for FAN-1 and SNE-1 had , from memory around 18 months to run with no work. I believe its lease was to COP Senegal the very same company that contained the 35% of the joint ventures leases. From memory the drill ship cost US$600000/day. That is a pretty decent liability that WPL is taking on. As it turned out at a later date COP disclosed that they had come to terms with the drill company and I believe COP paid them.
I am saying that without access to the full details of the contract between WPL and COP there is no way that FAR could know the real cost of the PE asset. The only way for FAR to know if the cost of COP Senegal and the cost of the PE asset are the same is to see the contract and full disclosure of any side deals.
It is my belief that FAR were never offered these details and hence the dispute.
Please don't ask me to go back and reread all the announcements etc to support my belief. Life is too short and I still work, have a life and family. Some of the more diligent readers may be able to provide more details or prove me wrong.
It is my guess that all will be revealed after either 2/7/17 or 22/8/17 though I note KKW has a hot tip for this Monday. I am sure KKW is correct that the lawyers have the case ready to go. I just don't understand the logic of going before the election and pissing the president off. I would think CN would wait till after CNE present the next upgrade in August so she can extract maximum value for this resource if the arbitration provokes WPL into making a takeover play. It is in FAR's interest for WPL to believe CN is all hot air until the next upgrade is announced.
All just in my opinion.
Good night
MMM
FAR Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
