We are three months into the 2025 year of production of oil from the Sangomar Project and WDS are telling us that "the reconciliation of underlying oil entitlement volumes with each joint venture participant and the Senegalese Ministry of Energy, Petroleum and Mines, is ongoing for 2024." What a load of piffle, just another excuse to delay the payment. The volumes of production and sales for 2024 were known months ago but they are telling us that they can't agree a simple percentage entitlement calculation. The sale agreement of FAR's interest in Sangomar should have provided for penalty interest to be paid on the contingent payment from the end of the year of production until the date of payment. Meanwhile WDS are counting their proceeds from the sale of the oil.
Small oil companies need to avoid entering into agreements with WDS with PCL recently paying the price for WDS stringing them along.
FAR Price at posting:
50.0¢ Sentiment: Hold Disclosure: Held
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