ConocoPhillips and Far arbitration to begin in Senegal acreage....., page-51

1trader and other PE knockers

Its not a matter of whether FAR was "capable" of doing a deal. The facts are FAR originally had the whole lease or 90% and they brought in JV partners with the usual JV conditions one being they they had the right to match any offer that was accepted by a JV partner for equity in the project. Its only reasonable that FAR have this right to get back equity they farmed out to get the block drilled and assessed. And its totally standard in the industry. FAR was denied this right.

WPL considers their claim frivilous for the very reason that FAR is making its claim ... the price was very low (and some sort of dodgy side-deal is suspected by meany betweeen WPL and COP). FAR would not have tried to exercise their PE rights if the price had been more realistic (i.e double or more) and this deal had the side effect of devaluing FAR's equity due to the low price. So FAR has been denied their legal rights and also had their existing share in the project devalued ... so they have many rerasons to pursue their claim.

FAR has every right to PE and to onsell the 35% or part of it. In Mauritania andother little Aussie compamy Hardman Resources did this years ago and made a heap of money by onselling .... as was their right.

H