AFR Articles, page-93

Morning All

I detect a little hubris creeping into the thread. Woodside are not stupid and we dismiss them at our peril. Szaba doesn’t get many thumbs ups for his cautious observations, but he is right to make them.

Look, I have never doubted COP and WPL pulled a dodgy deal in which Cairn was somehow complicit, but FAR doesn’t win just by occupying the moral high ground. It will need to mount a compelling legal argument and will be up against lawyers just as smart as ours. I do not include PE in my value calculations because I think it a coin toss at very best.

Yes, Coleman was shrill and contradictory, but he also introduced into the argument an implied threat to FAR. Hollow? Probably. But don’t forget Woodside and Cairn would love to rid themselves of their troublesome ‘partner’ and will pressure FAR whenever and however they can. FAR has done extraordinarily well to fund its way through a three-year appraisal program without divesting any of its 13.7% share of SNE. I am confident it will find funding to stay in until production, but until it announces that plan the market will continue to discount the real worth of that 13.7%.

Samo is the Company maker, not PE.

OOO