Malcy's email, page-60

Whisky, Hot and plugged

This discussion is a good one! Call me a nervous nelly Hot if you like but I'm with Whisky on this ... I think that the current financing and oil sector sentiment makes it not that likely that we will be able to acquire more than a small increase in project equity via a PE firm or similar, but a deal with WPL to waive pre-emption in return for some additional equity and/or free-carry is a real possibility ... and wouldn't be a bad outcome. I just don't see us being able to finance much more than say 20% going forward. Huge dollars are required for development ... what we need is WPL to stay involved AND another keen major to take out Cairn's share (like Total or Shell) .

I guess what I am saying is that I'm sure FAR management will give it their best shot but I will NOT be losing faith in them and tosssing in the towel if we don't see some spectacular deal. The oil game is a looooooong game and the rewards don't come easily particularly when the sector is struggling.

H