From our MD... I post this for those who doubt FAR management...

From our MD...

I post this for those who doubt FAR management teams commitment or ability to deliver... FAR will deliver, if your nervous and impatient, you know what to do...

"Many thanks for your email.


Further to Ian’s comments below, I attach some FAR thoughts for you.


By Cairn’s admission, they have not included the results of the interference test (SNE-5 and SNE-6 wells) into their new resource estimates. Hence, their pessimistic view of the recovery factors has not changed and hence why their numbers differ from FAR’s still. If you remember, back  in May, Richard Heaton said they expected the recovery factors to double and stated clearly in Tuesday’s presentation that they had not done the work yet so the recovery factors have not changed. Encouragingly, our gross view of the reservoir is very similar.


We are actively involved in all decision making in the JV. The numbers that Cairn released on Tuesday are NOT JV agreed numbers (neither resources, costs, NPV). We have JV meetings in the coming month to seek JV alignment where all of this will be debated.


CNE and WPL are working closely together as stated by Simon Thomson in the CNE presentation on Tuesday. It is not an ideal situation whilst the ICC action is unresolved but it has been WPL and COP tactics from day one to bully us into submission. We are not letting this situation go uncontested but it’s a delicate balance as you can no doubt appreciate.


I hope this helps to add colour to the answers to your questions. With respect to the tight hole policy, this only applies whilst we are drilling and have incomplete knowledge about well results that could be misleading to release to the marketplace.  The days of a day by day or week by week detailed update of drilling activities are well over. It is industry wide practice now not to do this and widely supported by various exchanges. There is nothing sinister here, just making sure that correct and complete information is released to the market (in a timely manner of course).


Judging by the email traffic this morning, there is a lot of frustration at the FAR share price. We share the frustration completely."