Ann: FAR signs RSSD Project sale contract with Woodside, page-5

Yes, you would have to wonder what ONGC Videt are thinking. The Remus bid is US $30M higher than their Sangomar sale proposal and US $10M of the $40M is held in cash so the real difference in price is around US $20M and for that you get Gambia and Guinea Bissau which I am sure you could off load for the US $20M. Then you have to think about the US $55M contingent payment which is 100% payable if brent averages US $68/bbl for the earlier period of either 3 years after commencement of production or Dec 31st 2027. The ONGC Videt bid with contingent payment values FAR at 2.4c, then add the cash and other assets. If they do not step up then you would have to wonder why they tried to buy Sangomar in the first place. Maybe they fear getting into a bidding war with WPL or they were just testing the waters to see if they could pick up a bargain. They must have know WPL would PE at that price so why waste the time and energy going over all the data to place a bid? Maybe they wanted to see if the Gambia prospects were worth a look at but who knows?

Another fact is that assuming FAR's NPV at first oil of US $640M is correct is that it potentially values FAR at 8.2c so Remus, assuming they think the same are paying just over 25% of FAR's potential NPV at first oil. There is a lot of fat there to compensate for left field events.