Quarterly, page-47

I guess Cairn were just being conservative with the budget, but in doing that there is also the more subtle build in effect of getting shareholders primed so that “expectations can be met or exceeded”.

1. Prepare a budget that is conservative and allows for all contingencies.
2. Get people used to that budget.
3. Make everyone feel warm and fuzzy when it comes in under budget.

Then for FAR:
1. Make a statement about already having “significant funding” for the first two wells of the appraisal program to ease immediate funding pressure on the share price, allowing it to rise.
2. Use the rise in price to hit the market with a big issue sooner rather than later to cover the first three wells including contingencies.
3. After making inroads into the first three wells, announce to the market the program looks like being under budget and FAR will likely have sufficient funds for an extra well, thus easing immediate funding pressure on the share price....
pj