Cairn Energy (Capricorn Senegal Limited) chooses Lloyd’s Register for field development surveys offs, page-20

DB,

FAR will not be requesting an audited RISC upgrade unless they need it. FAR are going to rely on the CNE upgrade due in late August. The markets not been responsive to the last upgrade. Note recent broker valuations have sited old CNE figures.

Under what circumstances would FAR need a nice big RISC figure.
Most obvious is if a take over commenced before the CNE figure is announced. I believe that is why FAR is spending money on RISC at the moment and good on Cath. I am sure she made WPL very aware of this fact when they came calling. It is also the reason FAR are doing preliminary production planning.

The second reason for FAR to call for RISC to finalise a new audited upgrade is if CNE do not include much of the 400 series sands in their figure. FAR would then be vulnerable to take over again in my opinion. CNE may publish a resource figure based on a low oil price forecast, say $35. This might result in elimination of the vast majority of the 400 sands. I do not think this will happen but the Scotts are a conservative bunch. In that case FAR would go ahead and publish RISC audited resource figures, I believe.

So lets be a bit patient cause the end of August is not that far off.

I will revisit another point, though I am aware Ya, for whom I have great respect, dismissed last time I mentioned it. Drilling the FANs is more difficult than SNE. These difficulties can slow progress. I believe the partners expected it could take a longer to reach the oil water contact than many on HC are expecting. I do not believe we can read anything into how long it has taken to get an announcement.

Have a great weekend. Hope the New Financial Year makes all you holders rich.

MMM