FAR Pretrade, page-222

I posted this on the Ann thread and I still believe it to be true so here it is again:

Getty ................ people seem to be of the opinion that the CNE price will make a considerable move if oil is discovered or not and this may be right however Cairn have considerable financial problems at present and IMHO all these difficulties will restrict the movement of the shares either way (IMO the share price is more likely plunge reflecting a duster than a moderate rise on a  success)

first off the India Govern are going after Cairn for the total sum of $US800 to $USGBP1.2b in back taxes from the transfer of approx $US10b of shares into Cairn India in 2007 refer link:

http://www.merrion-capital.com/mark...n-india-could-wipe-out-cairn-india-stake.html

second Cairn have not had much success recently with exploration wells the latest being a exploration well in the Artic that was reported as a failure and finally Cairn reported a total loss of GBP76M for the last financial year.

in mid Jan 2014 when it became known the the India Govern would be going after back taxes CNE SP fell from approx GBP260 mid Jan to GBP160 end of March ............. ever since then it has traded between a low of GBP164 to a high of GBP204 ............... they have also suspended the scheme for the buy back of shares and laid off several hundred employees

IMHHO because of these troubles I am unsure of the wisdom of relying on the CNE share price as an indication of whether FAN-1 is a success or not.