FARites Just got out of the AGM. Some key points for me (and I...

FARites

Just got out of the AGM.

Some key points for me (and I wish to share) are:

a) we know that the 500 series flowed at 8,000 barrels per day. Cath said that the production engineers advice is that if horizontal wells are drilled into the 500 series, we can get over 30,000 barrels per day per well!! WOW !

b) Cath said that Sirius is now considered part of SNE. In fact, if another well is drilled after FAN South, FAR doesn't want to drill Sirius (as it would offer little value other than understand the extent of the sands to the north. RISC will update 2C for SNE taking into account Sirius in the coming months) (Cairn have a different view). It was stressed that there is no agreement on drilling another well after FAN South, but if they do, JV hasn't agreed on location.

c) Pre-emptive rights. Although FAR believe it has good grounds for PE rights, the arbitration process would take a year from when it starts. Cath mentioned twice that all options are on the table and FAR would be happy to negotiate a deal with COP. (I took that is where this will mostly likely go).

Only received advice from Senegalese government that the PE rights is a matter for FAR to sort out with COP (so I assume that petrosen has waivered its PE rights?

Cath reckons cost of arbitration is approx a million and engaged Dallas lawyers.

Both FAR and Senegalese government have written to COP regarding PE rights and COP have ignored letters and approaches to discuss. (COP attitude is bloody amazing !)

That's about all from me - got to get back to work