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gridder

1,712 Posts.

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01/06/17

15:27

Post #: 25043793

Originally posted by Good Oil ↑

jhmos. If what you say is correct about Djiffere, then FAR would have been liable for 75% (at least) of what FAR calls the '$15m performance bond' no? Thus USD11.25m = A$15m.... now this they did not have spare in October 2016, perhaps leading to the rumours,,, refuted below... FAR cannot have it both ways...
Also see http://www.capenergy.co.uk/resources/CAP-Energy-Plc-Q2-2017.pdf page 23 for Djiffere Licence Terms... again at odds with what FAR say.
Remember that Trace/CAP management include ex-Petrosen execs...
The truth will come out one day... whose face will the egg be on?

FAR Refutes Claims that it cannot Farm Into Djiffere Block

by Rigzone Staff
|
Thursday, December 01, 2016

Column 1

1 FAR Limited has refuted claims that it cannot exercise its option to farm into the Djiffere block offshore Senegal because of a lack of funds.“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,” FAR Managing Director Cath Norman said.“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,” Norman added.FAR’s obligation under the Djiffere block option agreement was to acquire 150 square miles of 3D seismic data, which was acquired in 2015, therefore the company has met its obligations, Norman said.“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 $50 million and estimate spending $8 million in the December quarter,” Norman said.FAR has an option agreement with Trace Atlantic Offshore Limited to earn a 75 percent interest in the Djiffere block (subject to Government approvals). Preliminary processed products from the 3D survey on Djiffere 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.

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The performance bond will be solely the responsibility of the holder of the license. End of story!!