Broker Data, page-29

While on the subject of adding longterm value and that is the main responsibility of Management, lets fast foward 5 years and what senario could exist then:

Currently we have a MC of $365 Mil or $ AU 3.80 / $ US 2.77a barrel 2C , excluding cash as that will be spent ( likely for an increase in resources) and excluding our other leases.

Fast foward 5 years we are about to enter production that could rise to 21,000 Bopd ( gross revenue of $ AU 700 mil anually at $ US 70 Bbl oil on todays exchange rate) and have 2 P reserves booked in the region of 100Mmbbls ( very likely more) a valuation of $AU2 Bil would certainly not over the top but would be very much driven by oil price, reserves, exchange rate and sentiment at the time and could go either way. Take out $ AU 600 mil debt leaves $ AU 1.4 bil and divide by the equivalent of 6Bil shares on offer by then and you have a shareprice of 23c.

Now you say 23c a share is not much, well its approx 200% increase from where it is now and would be a very good return indeed for most longterm investors...for those who have relatively small amounts invested it hardly seems worth the effort but for those like FARJOY who have $30 mil plus invested an addition of $60 mil in the next 5 years would look very nice indeed... obviously for those who have averaged in at a higher price and who have been in for some time the annual return will vary considerably.

The main point of this very simple exercise is to point out regardless of dilution and debt, with a good asset in the right circumstances a more than respectable return can be made, it really is a matter of what you consider respectable. In the end FAR has to spend money to make money and as it's spent first and made later there will be dilution and debt unfortunately...

We have shares in an excellent Elephant...

Cheers Whisky