Hi H, Re your remarks: "Material information" can be argued .......

Hi H,

Re your remarks: "Material information" can be argued .... but as a minimum would include hydrocarbons encountered or not and flow rates at test (without a doubt!)”

and

"Several months passed from when they returned to drill FAN-1 and when we heard of the discovery. We then got details of net and gross oil columns and oil type. I expect the same again with SNE-2 ... no news during drilling, then news of oil column and quality once they have reached TD and have logged and cored”

I think their might be a difference currently in what they are obliged to report, as FAN1 was an exploration well and SNE2 is an appraisal.

FWIW, my thoughts on the matter as below:

CN has already indicated that a “tight hole policy” is in operation and that:

“FAR will release drilling information regularly during the program but will only provide material information when we have sufficient confidence to minimise misunderstanding and ensure that the market will be properly informed.”
Cath Norman Managing Director”

With respect to material information the ASX continuous disclosure rules Chapter 03 state:

“Once an entity is or becomes aware of any information that a reasonable person would expect to have a material effect on the price or value of the entities securities, the entity must immediately tell ASX that information”

Since this is an appraisal well and the market value is, in the main, built on already published contingent resource numbers it could be argued that the information would only be material if that position was known to have changed.

The ASX continuous disclosure rules also specify exceptions and these include:

“The information comprises matters of supposition or is insufficiently definite to warrant disclosure”

This exception seems to me to be what FAR may be intending to use, with respect to them not releasing even material information until they have

“sufficient confidence to minimise misunderstanding and ensure that the market will be properly informed.”

That’s just as I see it as a layman reading the rules. Of course if CNE were to approve it they can release whatever they want

pj