AGM

Hi All,

I also attended the AGM and have some more information to share and also to confirm what others have said already. It is very rare that I post but I do read most posts including the negative ones even though most of them are just bating holders with their negativity, but it is good to keep a balanced perspective.

The last last cap raising was over subscribed by 200 - 300% and FAR had to knock down the various institution's percentages. This information came about during my discussions with FAR during the AGM today and which I believe is not new information. The institutions then bought more on market to top up as we all know. Cath stated that FAR are fully funded right up to FID/2019 with there current expenditure program.

Far are also perplexed as to where the share price is currently sitting and they believe that it is sitting here due to the WPL extremely cheap purchase price and the current price of oil. The brokers & institutions in the UK & USA are seeing green shutes in the oil industry and are willing investors and see more value in FAR than the local market. Currently the top 200 shareholders own 70% of FAR and this was mentioned during the AGM.

FAR will be chasing their PE rights through the courts, as they have nothing to lose and it will cost them $1.0M and take 12 months, with the decision binding on all parties. FAR were told initially to sort it out with COP quietly and not in the public forum. COP have completely disregarded, with total contempt Senegal government's instruction and FAR have now been given the green light by the government to pursue their case through the courts, if they desire to do so and they are going to!!! Before the none believers start regarding the PE notice to COP, FAR lodged a "Notice of Dispute" at the 28 day mark and COP acknowledged that they received the notice within the 30 day PE window and Cath was in Houston at the time. As per JV this notice triggered the 90 day resolution window and the Senegal government asked both COP and FAR to resolve the dispute. Well COP did not even respond during this period so by default the "resolution period " has not even started, but they completed the sale to WPL during this period. The sale has not been approved by the government and this has been relayed to FAR. FAR were supplied a single page summary of the sale documents by COP and not the entire contract of sale to WPL with all the terms & conditions and this is at the heart of the dispute. WPL are bystanders in this dispute and have no malice towards FAR and their working relationship is actually quite good according to FAR. WPL is concerned about the outcome as was expressed to me by FAR and they would certainly like this matter to be put to bed.

FAR has also noticed irregular trading in its shares and this has concerned them, consolidation has been suggested as a way to reduce this. If they do a consolidation it will be very well planned to ensure that it is a success but it is not in the short-term plan from my understanding. FAR are actually worried about an opportunistic low ball takeover as they have about $100M in the bank and a World Class oil discovery. The major oil companies are valuing FAR's assets higher than the market according go FAR as evidenced by the Breakthrough Award which is voted on by its peers. Far feels that it's major shareholders would not accept such a low ball offer.

SNE will probably hit the Billion barrel mark according to Cath with a couple of announcements coming out by August- September this year after the latest interference testing is incorporated into the existing data. If Fan South hits oil in commercial recoverable amounts then it can be easily tied back to SNE.

The FAR executives that I talked to including Cath are all optimistic about the future.

Regards
Erinne