The Oct 31 2016 is the grey area that FAR have not really explained. I think that FAR are claiming that Trace did not have proper title to DJ due to not meeting work commitments in DJ and thus could not farm in hence the mention of waiting on the Govt arete. Then in the next breath FAR in Jan 2017 state that they are going over the DJ 3D and will make a decision shortly but I suppose, still waiting on the Govt arete. Reading between the lines, the last statement indicates that FAR were not in a position to exercise their farm in by 31 Oct 2016 because they had not received and gone over the 3D seismic.
The one thing that frustrates me with FAR is that they NEVER come out and explain things in plain english that even the most uneducated can understand. They always seem to be making statements that leave readers comprehending the statement differently. The exercise of farm in by Oct 31st can be read in a number of announcements up until the Sep 2016 quarterly and after that the language changes to "must drill a well" by June 2018.
So are we waiting on the Govt arete, the well to be drilled in June 2018 or what? The original announcement stated that FAR would carry out a 3D seismic and notify Trace of their farmin intentions by Oct 31 2016. Come Oct 31, FAR eventually tells everyone in Dec 2016 via email I think, that they are waiting on a Govt arete after enquiries by shareholders about an article out of Africa. Then in Jan they indicate they can't farmin because Trace has not met the work requirements and the title is in dispute.
I can see where Trace are coming from because the original agreement they would have known for certain whether they had a farmin partner by Oct 31 2016. Now FAR are claiming that all they have to do is drill a well by June 2018 to farmin. So playing the devils advocate, FAR tells Trace that they decline to farmin in May 2018 and Trace are stuffed because they have no hope of drilling the well within a month.
Then add to the fact that FAR are saying they paid for the 3D and do not have to hand it over and you can see that FAR are royally screwing Trace. I suppose the arete is held up because Trace have not coughed up the $15M surety.
So what are FAR's intentions? Is it to have Trace relinquish DJ title and accept their 25% as junior partner and then FAR cough up the surety? I don't know what they achieve by doing this. Noting that they farmed into A2/A5 and coughed up the surety I am at a loss why they aren't offering to do so now to get the Govt arete & title at DJ.
(20min delay)