Djiffere Dispute, page-3

Under its agreements, FAR has the option to earn a 75% working interest in the Djiffere block by drilling an
exploration well before 31 July 2018 (subject to Government approvals). The farm-in option can be exercised by FAR
at any time before 31 October 2016. In exchange of the farm in option, FAR shall fund a 3D survey in Djiffere,
estimated to cost US$1.1 million.


The above extract is taken from the agreement on CAP Energy website.

Some things need to be cleared up from that.
1) The farm in option is there only in exchange for the seismic.
Now if the seismic was the BEST $1m spent why was it not exercised before the due date?

2)FAR will then have to actually drill the well to earn that 75% then and after only that will FAR own 75% of the block.

On the first point you would have to believe that the least FAR could do would be to inform the market if they have applied for an extension and if that extension has been activated.
Emails to holders without that clarification means nothing.
All the emails say are FAR did the 3D and that's it.
Not good enough really.

Point 2 is there to clarify that the 3D commitment does no give FAR ownership/75% of the block until the well is drilled.
If a dry hole then FAR would then have 75% of a dry hole and remember the drill will be a wildcat.