Hi Colt, Davy Boy, et al., There should be 3 target levels for...

Hi Colt, Davy Boy, et al.,

There should be 3 target levels for the financing:

1) Minimum level. US$150m ($117.4m for the 9.545% and then about $31m for that share of my est of US$300m to get to FID.

2) Second level. Min level plus buy an additional 5.55% off CNE. This would give FAR 30.1%. This would then mean that WPL would have 25.454%, CNE with 34.45%. This is VERY important because, at this level, neither WPL nor CNE can gang up on FAR. This is because the CRITICAL JV voting % is 60 % (not 50% as some believe). This means that both partners HAVE to ask FAR to do anything in the JV. Any % below this and WPL and CNE can continue to have their own club and not pay attention to FAR. So add an additional US$87m for this one bringing the new total to US$237m.

3) Third level. Whatever it takes to get the Operatorship. I have no idea whether this is even possible so US$??m.

But the above is only if FAR chooses the consortia/Investor path. It would be different if they chose a Big Oil daddy strategy who would likely aim for the operatorship and slip FAR a few cheap % points.

So is US$237m possible? Hell yeah. I'm sure there are existing instos (Farjoy) and specialty fund groups who would jump at the chance. Its just a matter of pricing and structure (he said ever so flippantly after 20+ years in the game...Lol!)

Cheers,