Ann: Update on Remus Proposal and Woodside Sale, page-130

all that WPL need to do is to match any 3rd party offer.

to state the blindingly obvious, there is a huge difference between the WPL P/E acquisition of FAR's interest in the Sangomar field, and the potential Takeover offer from Remus.

Obviously, in the asset sale to WPL, the cahs proceeds go to FAR entity - and there is no indication from FAR as to what FAR will do with the proceeds. As I see it, FAR has never indicated that it would do a capital return to shareholders?

In a takeover offer from Remus, the proceeds go to us shareholders directly.
FAR board and mgt do not get their hands on the cash.

Surely, given the experience we have had of the current board and mgt of FAR, seeing the funds directed straight to shareholders would be a a big plus??

an offer under the WPL's PE right just has to be able to demonstrate it is at least equal to, or better than, 3rd Party offers. That's my understanding.
To be "superior", it would not be just about money. It would include things like certainty of finance, certainty/risk of completion, credibility of 3rd party, timing, maybe any approvals, likliehood of shareholder approval etc etc.

If the WPL sale under PE goes ahead, has FAR indicated what they will do with the proceeds? I vaguely recall they will use the cash to develop Gambia?? If so, after the disaster of Sangomar, why would the shareholders be comfortable seeing FAR proceed to develop Gambia? Will we just get a rinse and repeat? Will AFR have learnt anything?


I guess it is not up to us -- it will rely on the views of the big shareholders.

Anyway, at least a resolution of this mess is now pretty much a certainty now.