WPL indemnity and Govt position

Hi all,

Been a bit too busy to allow myself to get sucked into the seemingly never ending and revolving queue of fact-absent speculation.

But I did have a quick gander at COP's 10-Q SEC filing and noted the following on page 9...

"Other Planned Dispositions
On October 28, 2016, we sold our 35 percent interest in three exploration blocks offshore Senegal for approximately $440 million, including net customary adjustments of approximately $90 million. In addition, we provided an indemnification to the buyer for certain potential losses related to the disposition. The three blocks had a net book value of approximately $285 million as of September 30, 2016. Senegal results of operations are reported within our Other International segment."

2 surprises jumped out at me on this:

1) COP/WPL have, in the past, loudly hidden behind the sale of the BV holding company as a/the reason for no PE rights.  So very surprised to see them state for the record they sold their "35% interests in 3 blocks".  Not a "100% of shares in BV Coy".  Oops.
2) Providing WPL and indemnification for "certain POTENTIAL (my emphasis) losses related to the disposition".  Hmmm...a break fee perhaps for loss of deal or loss of operationship?

This last point actually brings me hypocritically close to the void of speculation.

It is highly unusual for companies to make such national sized transactional statements which expressly require the approval of the Govt.without some level of Govt comment or statement of approval.  So COP have provided an indemnity.  Fair enough.

So thats just another sliver of evidence that FAR's PE game is still afoot.  But of course, FAR cant say anything until the Govt gives the nod.

Risk has moved more (again) to the upside.

Cheers,