review of previous extension application, page-12

Hi Guys , I'm pasted a thread here that was started before the CSEM results ANN between myself and two other HC members.

The posters concerned are two of the BEST that contribute to the FAR forum ..... WITHOUT question! Both ask all members to DYOR and I , in no means are " HAVING A GO or trying to cry poor". What they have suggested could actually still happen.

START

One question ............. would a company try and deal directly with the senegal goverement , knowing that Far lease hold is coming up? Huge advatages! Petrosen could also be dealing with such companies as we write?

Sorry for the down side . But interested to know if such things could/would/never happen?



plugged
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funtimes...while I also think the point you raise is a possibility, the fact is FAR is in the drivers seat for 8 weeks after the Shell CSEM results are known.

While we've been waiting for the CSEM results since the 24th August, I'm sure ME has been on the phone to all past interested parties & those that may have new interest.

I understand why ME is waiting for the results before progressing negotiations as the CSEM results may still be better than what we currently think which would place FAR in a much stronger position to negotiate the best possible deal for shareholders & quickly lock in an unconditional JV offer.

If the CSEM results aren't great than HUNT OIL & FAR's main target (Buried Hill 1 bill boe) when initially marketing Senegal to the world during 1997/8 would again be the focal point of negotiations.

As in my last post IMO the only safe way for an interested party to secure a position to drill in Senegal is to close a deal with FAR before the current licences end.

Please DYOR



funtimes1
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Thanks Plugged for you thoughts.

ME, would have to extend the lease hold , have it confirmed around the time of the CSEM results with a ann. This would be the perfect scenio for FAR. Otherwise, I would think, no matter how good the CSEM results are, a future JV partner would hesitate with out the lease hold extended.

If the csem results are showing fields of large oil 1mil+
(doubt full with shell walking ) , FAR could go this alone. Highly unlikley though, as Far are in JV business and not farming. But, anything possible.However, the issue of the lease is still there.

I may be over reacting on the issue of the lease. I'm hoping its a formality only. But, i would rest easier with a ann sooner than later on the lease being extended unconditionally.

11/09/09 09:47 (View) Back Post Reply (+1)
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HarryShezza
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FAR need to commit to drilling by November, they don't have to drill at this time. As long as there is a 'commitment'. Therefore, I don't think a JV would be hesitant. They can commit if they like what they see in the 3D, CSEM and terms and drill next year...



plugged
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Harry....my thoughts as well. Cheers



funtimes1
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if I could conclude what both are you are saying in my eyes only ...... - yes, a JV partner would join the party and commit to a drill and sign away , but not actually start anything until the lease is extended? Therefore the new JV partner would carry no risk and one would presume that the senegal goveremnt would renew the lease based on the new JV and committemnt to drill?




HarryShezza
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There would be no renewal if there is a commitment to drill. They would then have a year (i think this was the time frame) to drill.

If you are confused read the ASX announcments, it is all there - hope this helps



funtimes1
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Cheers Harry . will do and his hoping !!!!!!!!

END



I didn't do my own DYOR enough and believed FAR would only need to get a commitment to drill for the lease to be extended. I actually wrote a few post , thinking it was a give me, after some thought and brought more recently

Now we're at mercy of the senegal govermemnt. I do hope, a few of them have shares in FAR!!

Once again I want to stress that Plugged and Harry have written the best posts and I'm only pointing out DYOR. I'm also not trying to make excuse's, even though some would think sooooo.

Plugged and Harry might be right , ME is finding a JVP adn ANN will come with a farm in partner and a lease extension ........................... wouldn't that be a little ripper for all!

Still keeping BUY sentiment at current SP.