Malcy declares FAR 'a no-brainer'

Hi All

Hot off Malcy's press. My bolding.

Far Limited I had the opportunity yesterday to catch up with Cath Norman and Gordon Ramsay of Far Limited, appropriately after their recent announcement. That stated that they had increased 2C contingent resources in Senegal by 42% to 468m barrels and that is not including the current appraisal programme.

The programme should almost certainly deliver more good news as SNE-2 had a successful flow test that was choked back and might have been more, indeed the thin sands above the reservoir may be crucial to confirming deliverability. The JV is currently preparing for a DST of SNE-3 which bodes well for the process and a good flow rate here would be further good news.

Even better is that at present, the drilling programme is 28 days ahead of schedule and one couldnt rule out that at $1m a day there may be an opportunity for an effective ‘free’ 4th well. After that it remains to wait for the declaration of commerciality which can’t be far away.

Far is funded for all this and whilst one wouldnt want to jump the gun there is enough optimism in the already released figures to make a confident prediction that Senegal will deliver what IHS/CERA described as a ‘world class discovery’ and is likely the biggest oil find in recent years.

Whilst some are playing Senegal through Cairn I have always been tempted to use Far as the vehicle, if you compare the existing finds and the estimated upside potential, it dwarfs the market cap of around A$250m, this is as close to a no-brainer as it is possible to get and is a lock away in my view even in current market conditions.

- See more at: http://www.malcysblog.com/#sthash.yhgICBjw.dpuf

OOO