Ann: Financing Update, page-323

Raising debt for an oil project is not what it used to be. I work for a very large international bank who in recent times has made the decision not to be involved in fossil fuels projects, hence a sub 10% rate is not too bad. Furthermore, given the ever changing environment in the lending world and the increasing pressure that is being placed on organisations (credit suisse and the great Roger Federer) in respect of environmental sustainability IMO the outcome is positive for FAR.

In terms of paying a fee on undrawn debt it is common in this game given those lenders have committed capital to the transaction and hence need to earn for that. If for instance you approved a loan of $1,000,000 to me to say buy more FAR shares, without an undrawn fee and I then came up with the money myself and did not drawdown the loan you would still have the potential obligation to loan me $1,000,000 meaning you would have to have it on hand but would earn nothing for having that liability.