Now I understand why CNE line up with WPL and act as if FAR is irrelevant. CNE do not want the operatorship and FAR are not able to take this on but WPL can. CNE want the oil as soon as possible and of course so do WPL. FAR really are the "n" in the woodpile here and so the big boys will try to ignore FAR as much as possible and act as though they are irrelevant. Conoco just wanted the sale money quickly and FAR's claim got in the road of that. Bully boy tactics I call it.
If FAR win their case (never assume the outcome of a litigation before it is announced has been my experience) then WPL can easily buy FAR out, or continue to ignore them and enter into continuing litigation from FAR while developing SNE and pumping oil with full support from CNE.
The Senegal Government has a say in all this and is the one player who can effectively put an end to the shenanighans but in the environment of African governance, who can pre-judge this?
For the record, I own both FAR and WPL. My entry into FAR was based on the SNE involvement while my entry into WPL was on the basis of them being a major with much wider interests than SNE.
I hope that FAR win on the PE and get the benefit. If so, WPL can splutter a bit and continue. The impact on their profitability is not major while I stand to gain a lot more with FAR in that case.
I find this a fascinating case in real oil politik and the stuff that books are written about. More to come to retain people's interest I am sure.
FAR Price at posting:
9.4¢ Sentiment: Hold Disclosure: Held
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