Cap takes Far Ltd to court over Djiffere data, page-85

When Africa Intelligence published a similar misleading and false report on Djiffere block Cath replied to a number of investors including myself (I've copied below those emails and the Q&A FAR released immediately after to address shareholders concerns regarding Djiffere and other issues...

FAR management is doing a lot more than what meets the eye... They are doing their best to keep its shareholders informed...

But unfortunately a number of TRADERS want to be reassured of their investment... I'm not going to waste Cath's valuable time for this garbage...

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Hi

I don’t know where on earth this article has come from. FAR’s obligation was to shoot 400km2 of 3D seismic to satisfy the terms of the option to enter the Djiffere block. There is nothing else to pay.

FAR remains fully disclosed in the market with respect to Djiffere.

Not quite as intelligent as they would have one believe!

Cheers

Cath
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Thanks

I am in the throes of contacting the publication (I have never heard of them but there are many newsletters and commentators out there who are not well read but claim to be) to find out the source of the information.

Thanks for bringing it to my attention.

Kind regards

Cath
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From FAR's Q&A - 1 December 2016 below:

"Q: What is the status of the Djiffere Block option agreement?
A: There has been some concern raised about an article that appeared in a little known African newsletter claiming that FAR could not exercise its option to farm into the Djiffere block offshore Senegal because FAR could not raise money to complete the transaction. The statements made in relation to this issue were false and misleading and FAR has notified the editors. There has been no contact made between FAR and the authors of this newsletter and we have requested that they reveal their source of information and retract the article. Secondly, FAR’s obligation under the agreement was to acquire the 400km2 of 3D seismic data that was acquired in 2015, so FAR has met its obligations under the option agreement. There is no cash payment to be made to the operator for entry into the permit. As reported in FAR’s September quarterly report to the ASX, FAR finished the quarter with a healthy cash balance of $50M and estimate spending $8M in the December quarter. FAR has an option agreement with Trace Atlantic Offshore Limited to earn a 75% interest in the Djiffere block (subject to Government approvals). The Djiffere 3D seismic survey covering 400km² over the north western portion of the Djiffere block was completed at the end of 2015 and preliminary processed products have been arriving over the September quarter with final products expected to arrive at the end of 2016. FAR expects to be ready to make a final decision regarding its option after this time. In comparison to the water depth over the nearby SNE discovery, the water depth is shallow in the Djiffere Block (<400m) which will allow for the use of a lower cost jack-up drilling unit. This means the cost of an exploration well will be lower than for drilling over the SNE field and hence the threshold economics for prospect will also be improved."