News: FAR Australia's FAR submits final development plan for Senegal oil project, page-30

Well after years of rumination, half cocked theories and speculation by all and sundry , the conclusion it seems is a win would provide a better outcome for FAR than a loss....hard to argue with really...

The JV has finally mentioned BOEPD which brings gas into the equation, although the formula for turning gas into a BOE is a very dubious one and the ratio effected constantly by the change in price of either commodity.
According to one article FAR is looking at a second funding arrangement, which it would have to do anyway if it planned to take its 13.7% stake to production without reducing WI..my feeling was the original US$350 sought would get them through to first oil and a second facility coming into effect for the remainder of Phase one expenditure. Another possibility is a second facility for the FPSO alone. An offtake based loan could well be involved in a second facility.

Anyway whichever way you look at it we need a shed load of cash and for me the most important part is how they are structured, if interest can be capitalised and the start of principal repayment delayed untill first oil it makes a huge difference to our cash requirements leading up to production...FAR's admin requirements are quite small compared to the potential interest bills.

Common sense tells you that minimising equity dilution will be the biggest consideration on management's mind at the moment and that itself would be effected on the outcome of PE as well as debt management...interesting times indeed and I added a little more at 4.7c in anticipation..

Cheers Whisky