CNE, page-29

Interesting point pj, the earlier EY reports that I found ie 2011, 2012 and 2013 actually detailed the average price per BOE for all acquisitions that year (and very obligingly providing a weighting factor for oil vers gas) however did not draw any comparisons between those acquisitions that included production facilities or not so am guessing that somehow the production facililities are handled within the TO documents as a separate cost item.

Unfortunately EY have not detailed the M&A in the same manner for 2014 just and overall total for the calendar year which for our purposes is not very helpful, I therefore researched several M&A for 2015 and did not take into account the production facilities and interestingly got very similar figures for each when we looked at the SP and whether the acquisition was due to share stress ie the effects of the low poo when combined with borrowings or not.

With regards to FAR, management will IMO be negotiating with the knowledge that they don't need to sell as they have no debt however if Nic and company have put feelers out for finance and got a negative response this strength could quickly drop from a positive to a negative, time will tell

HKP