Ann: Annual Report to shareholders, page-66

I think there is some confusion with regards to the events that lead to our current predicament.

For a start I doubt FAR would ever have been able to get project finance without FID. The fact that FID got pushed out to 2020 one can speculate on the reasons but the common consensus is that the PE saga may have had some effect.

Now add the fact that on Sep 30 2019 WPL advise the jv that they could not lease an fpso and would need to purchase one adding 40% increase to the planned capex. Did PE also effect the jv's ability to lease? We will never know. As for jv finance well we can speculate that PE had at least some involvement in the jv's (WPL) inability to lock in finance.

So if we look at the common denominator then we can speculate that the PE issue may bare some responsibility for the predicament FAR find themselves in.

Is there a silver lining? Well yes there may be. There is an excellent chance that WPL will be able to negotiate some serious cost savings. There may also be a possibility to get a leased fpso. The pendulum of negotiation power has swung from the supplier to the buyer.

Now is there potentially more dark clouds on the horizon? Possibly one serious dark cloud with regards to the applicants of the 4.25c share placement may have legal grounds to litigate to get their money back. If so then FAR are on the hook for AUD $158M ($147M sophisticated investors $11M for spp). FAR had AUD $150M at the end of Feb. Below is the relevant facts of the 4.25c placement;

The shares issued under the Placement are conditional upon gaining shareholder approval at a General Meeting to be held on or around 16 January 2020 and on the receipt of a credit approved Term Sheet for an underwritten US$350 million senior debt facility by 31 December 2019.

Well, we know they got shareholder approval. Now they failed to meet the Dec 31st deadline and also failed to get a term sheet underwritten for the entire US $350M. I'm not a lawyer but their incompetence through not putting out an amended prospectus may be their undoing as it could probably be successfully argued in court that the terms of the placement were not met.