underwriters obligations, page-15

Dodds et al,

Did you know that there is an easy way to tell whether the current share price action is due to problems with the appraisal well performance?

It's NOT!

FAR said "FAR and its joint venture partners will be operating a tight hole policy, and therefore FAR does not anticipate making any further announcements regarding the drilling program until the SNE-2 well has reached TDVSS"

My 'guesses' include:

FAR's joint venture partners have absolutely no intention of breaking their tight hole policy simply to shore up the concerns of what is likely a vast minority of FAR's shareholders.


The volume of shares traded to move the shareprice down a few percent is nowhere near that which would indicate the leaking of information that there is no oil.

Today marks the end of Week 3 of what was announced as an approximate 5 week drilling program only "after which the logging and flow testing program will commence" (ie the work that will provide us the answers). The drilling could take longer. I do NOT expect an announcement on the results even at 5 weeks - maybe only a confirmation of oil.

Consequently even if FAR wanted to it is not permitted to announce ANYTHING that would confirm that the current 'pull back' (which is hardly unprecedented) is simply market driven and not appraisal well performance.


If the cupboard was known to be dry they would have said so.