"Given there is a strong chance CNE wants to sell the undoubted development potential , there is a real possibility the numbers are being deliberately undercooked so management can claim exceptional selling skills in getting a better price. What is confusing is CNE appears to have conceded operatorship to Woodside – despite the dispute between FAR and Conoco Philips regarding pre-emptive rights within the partnership. Why ? Because being operator surely wants attract a higher exit price which operatorship brings."
Sounds like one very confused analyst, CNE have just stated they have no intentions to sell down their WI and are in the process of arranging development funding...that of course doesn't mean they won't but it will be some time away if they do..if they can arrange the funding they would be nuts to sell this Jem, they also now have income to help support them and producing assets that could be sold down instead.
There is probably a good reason CNE are proceeding with divesting operatorship to whoever holds the 35%, most likely the right to be operator transfered with it so they have no alternative...the only other logical reason is CNE don't want it or don't feel up to it, which is probably unlikely IMO.
How to make a good story out of relatively simple issues...
Cheers Whisky
FAR Price at posting:
6.9¢ Sentiment: Buy Disclosure: Held
(20min delay)