Quarterly, page-186

OOO

Excellent post ... you make some great points about getting mired in the daily grind of the market. The oil game is much bigger than today's price and FAR's assets will be attractive to those wanting proven reserves (shortly). A couple of points/reflections of my own:

- Yes we have found a heap of oil. Macy Sall seems very confident on this, the industry commentators seem very confident, FAR is confident, and most of us believe it to be so, but doubt remains until we see the numbers for SNE!! Only weeks to wait and FAR has already said >200mbbls likely to be proven by just SNE-2 and SNE-3.

- FAN has been "forgotten" but if SNE comes in at the 670mbbls or larger then FAN and the other two fan plays could have several billion barrels!

- You make a very good point about the reduction in exploration expenditure and its impact on the value to majors of proven reserves.

- Given that its looking like the first 3 wells will be completed by May sometime my thoughts turn to capital requirements. I am personally not worried if and when the next CR happens other than at what price. I would like opinions on whether alternative funding like another cornerstone investor (at a premium?) are likely (Seven Group??). In terms of timing I feel its unlikley they will leave it until after Bel-1/SNE-4 but it will depend in my view on the state of the markets and the share price and how it responds to the next lot of news.

H