WPL Lawyers, page-17

I am not surprised that Woodside are heavily involved in the PE situation, after all they are now really the only ones who stand to lose. Whilst WPL definitely want the project (why wouldn't they with the price they paid!), COP wanted out and now have learnt to live without it, and FAR would love having the extra % (or part thereof) if they could....though not having it just leaves FAR in their status quo position.

I do find it confusing as to why Woodside would be continually pushing PE out, as any belief that Senegal Govt would be getting annoyed at FAR (for any project delay) doesn't make sense. As to delaying the PE procedure itself being detrimental to FAR, I guess "uncertainty" in the market is one possible factor....but apart from that, my understanding FAR's finance options for the project is not hinging on PE. I can't help but think that WPL is just hoping FAR will get tired of the dispute and drop it (but I don't see this hapenning)

In reviewing the players in the PE I view...
> WPL...everything to lose . They bought the (%) project for a song and since then it continues to be proven up even more
> COP...little to lose. They sold the project to a willing buyer for an amount that suited them at the time. But imagine if it came to pass that COP was ordered to cancel the sale and give WPL their money back? SNE is still the biggest find in 4 years, and proven up further, COP is now out of trouble and POO has rocketed. I dont think it would be hard to explain to their shareholders that they are repaying WPL their $400m + costs to take back their % in the project...??
> FAR...nothing to lose and heaps to gain!

Recently I reflected again at the sale price from COP to WPL for SNE, and the discussion as to why it was so low. A theory I now bounce through my mind is a potential link to COP's Sunrise stake which WPL co-owns with its own 33%. COP has just recently sold its 30% to the Timor-Leste government - a result that could not be worse for WPL (WPL is in prolonged dispute with TL about where to pipe the gas...Timor or Australia). I have two theories...SNE $$'s may have been linked to a potential sale of COP's Sunrise to WPL but as market conditions have improved COP wanted more from WPL than maybe was originally agreed for Sunrise?...or if COP simply sold to WPL's worst nightmare (Timor-Leste), the relationship between WPL and COP has deteriorated to a degree where COP is now simply saying to WPL "we have our money - you are on your own".

No doubt PE is intriguing

dodds