Ann: Financing Update, page-254

The numbers come directly from FAR presentation of the 12 December 19 and total US$492m which is our share at the reduced rate of 13.67%

As FID is declared and it’s my opinion the Petrosen have already elected to go to 18% I assumed that our paying interest has dropped straight away, if Petrosen have for example six month to elect to increase then they only need to pay 10% of the first cash call and not 18%

Lets assume that there is one cash call where FAR is paying US$134m at 15% then the total cash call is US$893m if it’s at 13.67% then the cash call is US$980m

Based on the above FAR are contributing (gifting) US$13 m to Petrosen capital cost due to such a large first call.

The next question is what is the JV going to spend US$900m on this year? It just seems over the top. We know FPSO cost was US$1b and of the remaining cost 60% was for drilling (CNE Q&A) Drilling doesn’t start until next year so no up front costs and the subsea is still in the design phase as am not sure if the data from last 3D has been processed, so the only main cost this year I assume is the deposit on the FPSO and surely we are not paying 70% to 90% up front

My post yesterday was thinking out loud and been serious on HC (for once) rather than going for a cheap laugh which is always fun

The presentation in Dec was based on WPL’s budget at the time but I think it must have changed if by having a large up front cash call in Feb disadvantages FAR to the tune of US$13m then the impact on CNE and WPL is 2 to 3 times that of FAR so don’t expect the JV to cut off its nose to spite FAR

The budget timing must of changed, could be worth an email to FAR but they haven’t responded to my last email about finance, maybe they didn’t like my questions

Just trying to make a sensibly contribution as a thanks for the time you and others put in going to the meeting

Mr H I think FAR would do anything but reduce their interest and don’t expect another CR this year. Worst case is drawing on the loan but hope the JV’s members interest are aligned so that the silliness between them stops

Zip

ps had to start another family business overnight