FID Targeted before the end of 2018, page-8

I think CNE should look at selling down a portion (eg: 10-15-20%) of their current interest (of 40%) for future cost carry. Capex reqd & book value r 2 key points one could take away from their update.

Net Capex reqd for Development is $800mil that can b borrowed via various options. This figure includes leased FPSO costs.

Book Value is USD$434.5 (includes USD342mil spent on drilling 11 wells).

COP's BV was USD285mil & they took USD $442mil when oil prices were low. So a range of premiums (eg 30-60% ) can b used to work out an exit price for CNE hypothetically speaking.

CNE's next project off the rank after Kraken (29.5%) & Catcher (20%) is Skarjfell where they have 20% and plan on first oil by 2021.

Last year they've spent a lot of cash with Appraisal, Development & Production drilling & ended the year with Cash on hand $86mil, down from $334.9mil.

Basically 434.5+800 mil is their total expenditure attributed towards SNE. Total of USD1234.5mil.

Extrapolate that on a 100% basis and u get the total expenditure towards first oil (USD3bil+) for the JV for Phase-1.

FAR's annual report should b out later this month, so will give their share of expenditure incurred in Senegal for 2017, on top of the AUD98-100mil spent from 2014 till Dec 2016. I think future presentations should see them highlight their side of Capex & how they will look at sourcing those funds.