Senegal Plans To Be An Emerging Country By 2035, page-7

"Aside from geopolitical disaster, like Senegal nationalizing, what risks are there with FAR at present prices?"

Hi Rae

Aside from the oil price (which even in real terms is still high compared to the early nineties), given the 2 out of 2 record, "better than expected source rocks", "excellent quality reservoir" and "text book" technical features alluded to by Cairn in their CMD the risk, as I stated, would appear to be low.

Having said that, nothing is a given in the oil sector and you need look no further than Mandurah's post below for an example of how things can go wrong. Senegal is FARs only notable asset and at current prices is valued at around AUD$250 million. There can be little doubt that, however unlikely, failure of the first appraisal well would be dealt with severely by the market.

Thanks, Mandurah for that timely reminder and lets hope things turn out more straightforward on the shelf (as we expect).

pj