Ann: Financing Update, page-285

Hey kkw,

I would think that CN compensation figure would be north of $600 mil - in my opinion. The basis of this would be:

a) loss of revenue in on selling 30% of COPs share at a premium;

b) loss of revenue of 5% stake that FAR would keep. This would include loss of profit and cashflow for the next 25+years for that additional 5% acreage (obviously excluding liabilities for the next five years);

c) dilution of share register and share price impact as a result of capital raising a at low share price. This is a consequential effect as a result of not being able to access funds as a result of not being able to on selling - which FAR would have - if they had PE.

The above is just off the cuff. I’m sure others can add to the list.

Hence my comment that it may even be in WPL best interest to lob a bid and sweep up the company - than to compensate FAR for just as much - or may more.

I agree though that Meridian and Farjoy are our gatekeepers and will ensure proper market value is obtained for any bid - regardless of current share price.

Cheers.