JCoure - I'm sure you're a nice bloke but I completely disagree with your hypothesis.
'I think FAR is getting itself caught up in this spat with WPL in Senegal and that is not good for its resource allocation, management governance, risk and compliance or overall strategy.'
- Wtf? its not a SPAT it s legal right to oversee the complete dealings and transactions of the sale of COP to WPL.
Resource Allocation??? We have $120M of which legal proceedings will cost $1m of this. The lawyers will represent us which means we continue with the JV work and/or other plays in the background we have at hand.
Mangement Governance??? Do you know what that even means because I deal with it everyday.
Risk and Compliance??? - as previous posters have mentioned - there is no risk to FAR we hold 15% if loss / 50% if win or 15%+ in settlement.
Overall Strategy??? Improving fundies from 15% to 50% of 1b+ oil field without risk is not a good strategy?
'In oil and gas, big players always seem to win:'
- yes they do because they either go ahead with arbitration knowing they have the law on their side and the capital or they don't and conduct T/O's and out of court settlements. So they won't make public - 'we fkd up and decided to buy them out right' but they will certainly make public the wins in arbitration they go ahead with.
Don't forget we've been in Senegal for over 10+ years steadily building a trustworthy relationship and are not going anywhere soon while WPL are Johnny Comelatelys.
(20min delay)