FAR should now be in play

FAR is now in play.

Here is my rational

If say you where looking at what the JV have found offshore Senegal and wanted in. you have missed your chance (say Total) to buy CNP stake as WPL have a signed a legal binding deal to buy of CNP.

The CNP and WPL deal at USD 2 per barrel 2c is cheap!!

So here what you would do

Take over Far ASAP and then you would own 15% of the CNP Senegal assets and have pre-emptive rights to the deal of the year.

What a play and either CNE takes up its pre-emptive rights or the new company that has taken over FAR takes it all.

Either way the company that take out FAR end up with the following percentage of the JV.

Assume CNE exercise its pre-emptive then you have FAR 15% plus 8% of CNP 35% = total of 23% plus operatorship. Not bad at all.

Or

Assume CNE doesn't exercise it pre-emptive rights then you have Far 15% plus all of CNP 35% = total of 50% plus operatorship.

Wow not a bad end result.

So they can pay say 15 cents for FAR right now and still end up buying extremely cheap in ground oil especially as there the 3S mega field still to be released in my view.

Now that a game I want to see played!!!