Sydney Presenation - 30 Oct, page-67

DavyBoy and Rolla,

a JOA would normally have provisions in it to take care of situations like this. Of course, we haven't seen this particular JOA, so it is difficult to say for sure, especially since Erin attempted to keep Erin Gambia outside of the bankruptcy proceedings. However, this situation is also a bit complicated because FAR is carrying Erin Gambia for the well, so it may be obligations both ways. And since there is a carry, it may not be so simple to terminate them during the drilling operation as it otherwise would have been, That and the tax situation (and possibly the Capital Gains tax that may or may not be owed by FAR to the Gambian government due to the Petronas farmin) just makes the situation murkier.

I agree that it sounds like the Debtor in Possesion Lendig probably never happened, at least it has not been posted on the lawyers' website. All of this makes it a bit difficult to know what the real situation is.

I think it is probably very likely that Gambia and/or FAR (maybe alongside Petronas) will get their hands on the Erin 20%, but I would not call it a sure thing until there is clarity on it. The situation is too messy as it is. I am not entirely sure it will be settled before the result of the well is known. If it is a dry hole, it doesn't matter, and if it is a discovery, it will suddenly become very interesting. I would consider it a bonus if FAR got more of the license, but would not count on it until it happens (if at all).