Is Cath in London? And if so, why?, page-47

Trace don't have to pay anything (other than a premium).

Gus, if I'm reading this right I think what Dianella is saying is that CAP/Trace need to have some sort of asset whether that being cash or something else that the bank is willing to accept as collateral (bond) for the guarantee. To keep that bank guarantee they will also need to pay a fee for X amount of dollars. It seems to work exactly the same as a bond in the criminal system where assets to the value of the bond are held and if the person skips, whoever coughed up the assets for the bond lose the lot.

In this case, do CAP/Trace have something worth $15M that a bank would accept as a bond before issuing their bank guarantee? The answer is probably NO! Then in the off chance of CAP/Trace having an asset worth $15M, would they put that asset at risk having not seen the 3D seismic? The answer is NO as a well commitment is probably $20M plus so their loss would be a minimum of $15M but up to the cost of a well if they chose to drill, assuming they are unable to farm out.

I'm not sure what FAR's endgame is here. Some may call it shrewd business negotiations and others like myself might call it something else. FAR know what the 3D is so can make a decision to either advise CAP/Trace that they are not farming in and ask for their $1.5M for the 3D or farm in. Logically, FAR cannot be that callous to screw CAP/Trace so I assume FAR are working on getting a partner to drill the well and keeping hush on what they're doing from Trace.