As promised, this response just in from Cath.
Nothing we don't already for obvious reasons of confidentiality, but I did rather like the sound of:
"...it’s only sensible that the Board of FAR seriously consider our right to pre-empt the proposed transaction."
and...
"...until we have the information from COP to allow us to evaluate the pre-emptive right, we cannot finalise plans..."
Finalise plans, hey? Intriguing...
One could be forgiven for thinking that we are only a few undisclosed documents away from pushing the PE button... cough 'em up, COP!
gh.
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Thanks for your email and I am glad you could make it to the Good Oil conference.
There is not much more to add about the pre-empt situation. We have been queried about why we would want to preserve our pre-emptive rights to the COP/Woodside proposed transaction and it’s all about buying cheap barrels in SNE (let alone all of the upside potential in the permits – which is what I did not expand on too much in my talk due to lack of time).
Our operator has released that the NPV/bbl in SNE at FID will beUS$12.50/bbl (based on Cairn’s 2C of 473mmbbls and a US$70/bbl oil price) and the look-through valuation of the proposed transaction is US$2.20/bbl (at the time based on a 2C of 560mmbbls). We have now released a 2C resource volume of 641mmbbls and are also confident that the OPEX and CAPEX for a development at SNE in the next 3-5 years can be reduced. Given these metrics, it’s only sensible that the Board of FAR seriously consider our right to pre-empt the proposed transaction.
Saying this, until we have the information from COP to allow us to evaluate the pre-emptive right, we cannot finalise plans and we are looking to resolve this situation as soon as possible and in an amicable manner.
Kind regards,
Cath
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Cath at her best, bringing some woman's rigger to the thing.
I feel like I still need to be patient, which is a pain, this whole PE thing could drag out months and then if FAR don't PE at the end of all, it will all be very confusing. We will see. I think FAR might grab 5% for one of its sweetheart shareholders. And that won't hurt.
But I give credit to Cath again, FAR is getting priceless global media attention at the mo....free.. Nothing wrong with that! Off shore Senegal is starting to be part of the oil landscape. I don't see sharks circling, but I do see whales down in the deep keeping an eye on the thing. They will saddle up when it suits them. Senegal isn't going anywhere. Let the little explorer explore they probably think....we will buy it up when the time and price is right....that's what they are saying. The frantic carry on here on HC has been good recently boys. Even Tony is off ignore. Cujo I do love watching your posts because I am always amazed how creatively you can twist things. I can be a bit like that myself. Being a fellow Newfie fan I have respect to you.
With everything that's going on you have to keep your eye on the prize. FAR is well place to deliver value to shareholders. The chances are that FAR will pull a rabbit out of the hat one day, we just have to wait to see when. It could be weeks away or years away.
This is investing - I'm happy and green.
Juju