EGM Meeting Notes

Hi All,

Many thanks to the others for their contributions, here are my notes from the meeting.

Cheers

Risk

• Woodside bought shares in COP entity, Entity is operator
• Woodside has effectively squeezed FAR
• Woodside has claimed only bought entity.
• JV agreement is not black and white
• Was expecting December PE decision
• First cash call end February, WPL has 2020 work plan and budget.
  
• No shortage of banks wanting to sub under write.
• Mezzanine, second tier lenders, won’t announce for 4 or 5 months. Mez should be easy to get
• WPL couldn’t do project finance? FAR participated in meetings for 2 years. More experience in FAR with project financing than WPL.
• Bonds will be possible closer to oil.
• Senior debt is less than 2% over libor
• 6% bond could replace debt or mez, could re-finance closer to oil.
• Sell to Total / Shell? could still be an option, but only if price is right.
• Struggling to have market recognise value, standard for this stage of resource development project.
• Risk of take over.
• Woodside has been very quiet over the last year, haven’t promoted project, banks are wondering; is the operator committed? Woodside should pipe up now.
• Modec wouldn’t lease, not rely on CNE FAR, could have done better.
• FID: no such thing as FID in JV doc, operator asking participants to take FID. (yes)
• Another Capital Raising within next 3 years? Never say never.
• WPL has been gold plating the project.
• Massive availability of capital in USA for shale.
• $11m raised from SPP
• Inherited 2002 PSC & JOA, not the best, but suited FAR.
• COP offered PE, but then tried to drive a legal wedge. Apache ruling is relevant.
• ICC tribunal, ruling to ICC Court, weeks not months.
• 2 arbitrators who are from Napoleon / civil, one who is English system.
• Right to pre empt is first request, damages in second instance. COP would have to buy shares back from WPL,
• Would do PE again, right to be heard & process.
• Timetables were all pushed back