RIU Good Oil Conference - Vide, page-27

Shorting may be happening as the dispute resolution period ends about the 21/11/2016, then it will go to arbitration or the PE clock will start. If the PE clock starts then it will be 21/12/2016 before we find out if FAR will PE, otherwise we will be well into 2017 before we get any news on PE.

So we have a long lead time before the news comes out, the positive upswing in the SP this week, I would put down to the Presentation done in Perth. This momentum will not last unless we get some other good new e.g. drill location, final 3D, farmin Partner for DJ block, drilling starting.

I am assuming that COP will not do anything until they are forced to otherwise it would have happened by now, therefore we should be drilling before the PE issue is sorted out but I find that hard to believe. When we drilled SNE4 CN as some point said she wanted the drilling to continue but the drilling abruptly stopped. We only ticked 2 out of the 3 boxes, and the drilling program was originally 3*3 wells but only drilled 3*1. Now we will return at some point to complete the final two wells and confirm the connectivity of the field. The change of plans may have been at the time when WPL and COP were completing the deal and as WPL expected the deal to be done before the end of the year when drilling was to resume, so the timing seem to fit. I think the new drilling timetable will now be delay, but publicly it may be put down to drilling contract negotiations rather than the dispute between FAR and COP. Really hope I am wrong but can't see COP committing to any deals. COP has one foot out the JV door but CN has her hand on their shoulder stopping them from leaving.

I also expect shortering to continue for some time as long as the shorters see an opportunity to push the price down.

DYOR

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