far a huge buy now, sitting pretty, derisked, page-54

Mbawa Discovery Adjacent to Two FAR Blocks - Buy
We are upgrading FAR Limited (“FAR”, “Company”) from a Speculative Buy to a Buy based on its large exposure to offshore Kenya, where the Mbawa gas discovery was recently made in Block L8. FAR has a 60% operated interest in Block L6, immediately adjacent and to the north of L8, and a 30% interest in Block L9, immediately adjacent and to the south of L8.


Well Positioned for Huge Re-Rating, with Additional Catalysts
FAR has exposure to likely further drilling success offshore Kenya, where it has two blocks adjacent to a play opening well in the region. Additionally, activity adjacent to its Senegal acreage could result in a further re-rating by early next year. News related to farm-outs on both coasts of Africa is also probable.

We have upgraded our recommendation for FAR from a Speculative Buy to a Buy and have increased our price target from 13cps to 17cps.