With the expectation of new information from Cairn and possibly...

With the expectation of new information from Cairn and possibly others this week, we can expect every statement made to be picked to pieces and all sorts of wild misinterpretations forwarded - especially regarding FAR's PE challenge. Now if a concrete statement is made by FAR regarding the status of their challenge then all well and good, but if not, then people will draw all sorts of wild and incorrect conclusions from whatever comes out.

In particular there has been much incorrect speculation about the status of FAR's challengebased on "evidence" such as:
a) Public statements by Peter Coleman regarding the completion of the sale
b) Speculation as to who is sitting at the table in JV meetings
c) Speculation as to who is now paying costs

Peter Colemen's statements have variously been interpreted as meaning that:
a) Peter Coleman is naive OR
b) Peter Coleman is lying OR
c) FAR's challenge has failed and the sale is irrevocably complete

It would appear that many believe that the above are the only possibilities. Peter Coleman's statements actually meant that the conditions of the sale contract between COP and WPL have been satisfied, the government has not objected within the objection period, and therefore the sale is legally complete. People seem to think that that is the end of the road without understanding that FAR's challenge, if successful, could invalidate the sale and effectively undo it. It is not as though COP have handed WPL the keys and WPL have moved their furniture in. The sale only occurs on paper. Nothing actually happens on the ground in the real world, and therefore the sale can be undone on paper also.
To those who somehow think that who sits in JV meetings or who's bank accounts the ongoing costs come out of are somehow "evidence" of the succeess of FAR's challenge - these are irrelevant. Given that the sale is complete but FAR has challenged it's validity, whilst ever that challenge remains unresolved, COP and WPL (and also the other JV partners) will have interim arrangements in place regaring who attends meetings, who is entitled to vote and who the operator should send the cash calls to. Once FAR's challenge is completed one way or the other, then the costs will be settled and the JV will move on.

A separate point is that confidential discussions that may or may not be occurring regarding any settlement do not need to be disclosed as they are - confidential. FAR originally stated that they were challenging the process on the basis that they had not been given the full conditions of sale to allow them to make a PE decision. Since then, confidential discussions have been occuring and we have heard nothing. There could be a negotiated settlement imminent (as some have speculated) or it could be going to go to arbitration. The fact is we don't know and there well could be material developments that remain confidential and which FAR does not need to disclose until they are in a position to do so.

This goes for DJ also. CNs statement that FAR remains "fully disclosed" in relation to DJ does not meant that there has been no material change. It just means that any material change remains confidential and FAR is not yet in a position to disclose it. Read ASX listing rule 3.1A to understand this (http://www.asx.com.au/documents/rules/Chapter03.pdf).