Key points from AGM, page-33

That’s a great pick-up, Szaba. I’ve not seen FAR question the very mechanics of COP’s ‘company sale’. Their clear inference is that COP back-engineered an asset sale to dress it up as a company sale, providing for Coleman’s ‘you can’t PE a company’ claim.

Hope you took my dig in good spirit. I do understand your argument, but we’ve all flogged the topic to death so much that I’m just over it.

Whisky, I checked my notes and Cath definitely said FAR’s share of SNE development costs would be $US400 million. Perhaps I misheard the overall cost; I thought she said $US2 billion but did not write it down.

A few other snippets:

> The Chairman said FAR ‘constantly maintains an independent valuation of the Company’. ‘We’re not here to protect our jobs; we want the best value for shareholders.’

> Cath pointed to the ‘huge latent value’ FAR has already locked in, with 100 million barrels of 2C in the ground in SNE carrying an NPV of $US10. (There’s a billion US, or $AUD1.3 billion locked in at seventy bucks - or 23 cents per share.)

> Djiferre is dead and buried - no prospects worth drilling.

> FAR would prefer Petronas to develop the Samo field.

> Cath sounded upbeat about Guinea Bissau. The Atum prospect is on a proven play type and has a best estimate of 471 million barrels. The FAR/Svenska JV is currently farming down with an intention to drill a well in 2020. Cath hopes to release news this year.

> Not sure what will happen with Erin’s 20% share of A2/A5. Erin Gambia is not part of the Chapter 11 filing and FAR is playing it very cool. ‘The US does not like to see companies making grabs for licences; it wants to see creditors looked after.’ There is no downside for us in Erin’s predicament. Nor are there any PE rights for us, by the way (he said to a collective sigh of relief).

OOO