Cujo et al, Don't you think COP shopped its interest around to...

Cujo et al,
Don't you think COP shopped its interest around to all possible buyers before accepting WPL's offer as the best available ? Why would you think there is some other buyer willing to trump the WPL offer at this late stage ?
CNE does not look remotely interested in exercising pre-emption (you can bet they were offered the interest directly by COP in the first instance). As to the possibility of FAR raising funds to buy the whole 35% interest under the pre-emption rights, it is only a few months back that FAR was raising relatively modest funds at significant discount to SP just to stay in the game with its 15% ! It is impossible to see FAR able to raise the purchase funds, much less the $2.5b additional cost of going to production. The best that FAR can hope is that it can raise sufficient funds to stay in the game for its 15% as you can expect WPL to want to move quickly to production and FAR will have to ante up its share or sell down at firesale price.

I agree that COP was a very keen vendor and , probably , the price was at the lower end of fair value, but the sale was "at arms length" as they say and is therefore the only indicator of market value that we have. The price COP are paying puts a value of 6cps on FAR shares.

There is no appetite out there for deep water oil, even if there appears to be a ship load of it. At sub- $50 POO this field will not even get into production. The idea that a white knight is going to come along and buy out FAR at a 300% premium to market value is fanciful. If anything it is likely that WPL will put pressure on FAR by fast-tracking production in the expectation that FAR will not be able to keep up with its share of costs and will be forced to sell out at current market value ( 6cps ATM ).

I have little faith in management, being heavily influenced by their behaviour re options and performance rights. They have not impressed with ability to raise funds and have not demonstrated any influence in development of the project - in fact, how can they as a 15% JV partner? FAR is just along for the ride and might as well have a caretaker BOD at minimal cost to shareholders.

I am now out completely, and surprised/grateful that buyers were willing to pay 8.1 for the last 30% of my holding.

GLTAH

Fisho