FAR Limited has received notification from Woodside Energy (Senegal) BV, stating that the Senegal Ministry of Energy, Petroleum and Mines has confirmed that petroleum expenditure not directly connected to exploration activities cannot be recovered. Woodside is therefore demanding a US$6,029,899 payment from FAR Limited within 14 days. This claim arises from the terms of the Sale and Purchase Agreement under which FAR Limited sold its interest in the RSSD Project to Woodside in 2021. Prior communications made earlier in the year, notably on 31 January 2025, addressed a potential indemnity situation where FAR Limited could be liable for up to US$6,803,355 in losses resulting from unrecoverable petroleum expenditure. The earlier notice indicated that Woodside was required to provide detailed written notice of any claim by the first anniversary of the first oil sale, a deadline that is now imminent. FAR Limited has been actively seeking additional information regarding the claim while expressly reserving all rights under the contractual provisions, and it has not accepted any liability to Woodside at this stage. Market sentiment on this development presents mixed views. On the bullish side, some may view FAR Limited’s firm stance in reserving contractual rights and its efforts to gather comprehensive information as an indication of diligent risk management and transparency, qualities that could support investor confidence in the company’s long-term stability. Conversely, the bearish perspective is driven by the immediate financial exposure of over US$6 million, alongside the uncertainty that surrounds the final outcome of this dispute. This potential liability may pose short-term liquidity challenges and impact the company's financial performance, which could be a concern for trader assessments and risk evaluations.