CAP and FAR set for Mediation

Oh Dear, here we go again? Looks like FAR were represented in late August, according to this,,, contrary to denials?
Claim now $17m.... may explain the selling?

THE LEGAL tussle between UK junior Cap Energy and ASX-listed Far Ltd. over access to 3D seismic shot on the Djiffere block offshore Senegal passed another milestone last week with a High Court in the capital Dakar ruled that both parties should seek mediation in London.
Cap has registered a request to increase the original $2 million lien on Far’s assets to $17 million to cover the value of a bond demanded by the government to enable Swiss-based Differe operator Trace Atlantic Oil and partner-guarantor Cap to proceed to the next exploration phase.
Melbourne-based Far claims it still enjoys a valid 75% option agreement with Trace and Cap to farm into the Djiffere block upon provision of contracted seismic but has so far delayed, claiming Trace does not hold the block in good standing.
UK-registered Cap says it withdrew that option deal last year but is nonetheless required to post a bond blindfold in the absence of seismic that Far was to provide under the option accord.
In a hearing on 28 August, the advocate representing Far, Maitre Ibrahima Mbengue, secured an adjournment and the court eventually scheduled 28 September to give judgement.
Both companies were ordered to seek mediation in London with arbitration under English law also suggested by the court. However, if the mediation fails and parties do not agree to arbitration they are constrained to return to Dakar under the jurisdiction of Senegal where the contract was signed for the court to make a final decision, according to Cap’s counsel Maitre Malal Barry.
Following local procedures, Barry must now work through the court to formally invite Far to mediation in London.
Far’s interests in Senegal are reflected in a 15% equity holding in the Rufisque-Sangomar-Sangomar Deep (RSSD) block operated by UK-based Cairn Energy -- and in the flagship SNE field development.
Far also approached the International Chamber of Commerce in Paris on 20 June to commence arbitration over its pre-emption rights to a 35% stake in RSSD originally held by ConocoPhillips but farmed out to Woodside Petroleum without, Far claims, following proper notification procedures.
Far has consistently denied having formal notification of any dispute with Cap Energy and has opted not to comment on the legal proceedings underway in Senegal.

http://www.upstreamonline.com/archive/?q=djiffere&languages=en&locale=en


DYOR