inventories of oil product may be at an all time high, however depletion of proven insitu reserves will continue to accelerate as a result in reduced investment in the sector. Reduced exploration investment now will take a couple of years to take hold, but when it does, the pipeline of projects capable of meeting future demand will be much reduced. Thus, increasing the POO. Fortunately for FAR, it is a great time to prove up the Senegal project, take advantage of the low cost environment, and by the time they have evaluated it, call it a year or two, POO should be $70 - $90/bbl+. Anyone willing to hold FAR for 18months and provided there is no unexpected disaster in the current program, then should do very well, imo, a reasonable SP expectation would be $0.20 - $0.35.
FAR Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
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