The true value of FAR, page-62

Hey guys why don’t we just park the PE, as its not currently important, as an arbitration decision is at least a year away, and it is just like a plover running around the paddock distracting from the real prize.

Following the AGM the current value of FAR can be calculated as follows. Note that FAR now only quote an NPV for SNE of $US12.50 ($Aus 16.66) with oil at $US70 per barrel (at FID 2018/19). They use the $US12.50 value as the predicted value of oil will be over $US70 per barrel when actual oil will flow and future cash will flow in. So for SNE, say a discounted (to bring back to 2017 $s) $Aus15 x 96M/5.462B = 26.3 cents per share.

This doesn’t take account of any unexplored reservoirs, of which the Annual Report estimates there are 1.5 Billion barrels over and above SNE, and not including FAN1. Nor does it account for the results of the SNE VR1 well which has added oil from the thicker sands to the 96M barrels, The Gambian acreage, and the Guinea Bissau acreage, plus the $80 M cash just raised.

The doubled recovery factor gleaned from the AGM will double the currently estimated 96M barrels to FAR, so that puts a minimum value on FAR without other effects of 26.3 x 2 = 52.6 cents per share.