Sorry everyone some how only posted half my report before from...

Sorry everyone some how only posted half my report before from my new device

Notes from Gold Coast Presentation

1. The “resort” is rather a post apocalyptic waste land and no money was wasted on biscuits and other extravagances. These guys seem totally focussed on getting the most from every one of our investment dollars.

2. The same HC warriors dominated questions, perseverating on “PE” seemingly totally ignorant that there is a whole lot more to FAR. Unfortunately this left little time for a whole range of interesting question from some very intelligent investors.

3. Cairn(CNE) would like to sell down some of their share, possibly later this year. They will only sell when they believe it represents shareholder value. This will finally put a realistic value on this very sweet oil. My take was that they would sell when they are offered $10/barrel. This will finally put a price on SNE towards the end of this year and definitely by FID. This will move FAR from speculative to investment in my portfolio.

4. There is no doubt that the Government of Senegal will take up their full 18% of SNE from FID next year. FAR will own 13.7%? of SNE and be paying 13.7% of development costs

5. Talk of World Bank financing of SNE is probably based on a misunderstanding. World Bank will probably be financing Senegal’s 18% at very good rates and definitely oversighting the financing. This is a very good thing as it will deliver transparency to the project and make due diligence much easier for other financiers.

6. Samo is what has got everyone’s attention at FAR. These guys love exploring and no one does it better

7. Erin, this I found really interesting. It seems the JOA for A2 and A5 is written in such a way that if a joint venture partner becomes un financial then the ownership of their share of the lease reverts to the operator. FAR as operator have notified Erin of the situation and that the asset cannot be disposed of by a liquidator. This is fluid and Far could end up with 60% but only with government approval. You would think that Gambian Government would want a free carry percentage to give such approval(My comment)

8. Geologically A5 is very interesting and 50% is covered by 3D seismic. It will become very clear after the drill bit interprets the seismic at A2.

9. Now this is where arbitration of the pre-emotive rights belongs. It is just a speculative twist and should not be banked. That said, Cath was at pains to emphasis they have a very good case and FAR will be buying the lot if they are given their pre-emotive rights. They would then be on selling maybe 30% for a free carry. She strongly stressed this is not some strategic play based on legalities. They would like a decision yesterday and they have a good case.

10. Cath holds the Robertson boys in great regard and there were some touching snippets in private conversations, about their hands on input especially with regard to arbitration.

11 All the above is from memory the morning after a great meal at Rick Shores. The Bug Roll is something you should all put on your bucket list. Could be a venue for the $1 party.
I did not take notes so the words are all mine and I take responsibility for any mistakes or inferences misperceived

MMM