You can google for deep water oil and you can see a Reuters story saying that 8% of deep water production is uneconomic at 80dollar oil. What does that imply for those developing unproven fields with no infrastructure in the region? Such as FAN 1 (assuming the reservoir is good). It seems like the drilling costs have been incredibly high, for FAR to be stumping up over USD30m in cost overruns for 16.5%.There is a risk this is a great discovery but not a great investment. Has anyone run the maths on the cost to get to production and likely lifting costs?
I think we are due for an oil bounce but there's long term risk from oil reserves having soared 60% from oil sands, deep water and shale (worse supply response than iron ore).
I don't fancy getting back in. I hold Cairn which seems much lower risk tome while still having seSenegal upside, but I am skeptical of the economics, and would be very happy if someone could provide some scenarios, not just blind optimism. If this is such a great discovery, a large dilutionary placement at a big discount is odd.
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Last
49.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $45.74M |
Open | High | Low | Value | Volume |
50.0¢ | 50.5¢ | 49.5¢ | $16.90K | 34.12K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 17623 | 49.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
51.0¢ | 129688 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 17623 | 0.495 |
1 | 30000 | 0.490 |
2 | 32000 | 0.485 |
3 | 83930 | 0.480 |
2 | 70000 | 0.475 |
Price($) | Vol. | No. |
---|---|---|
0.510 | 129688 | 3 |
0.515 | 2239 | 1 |
0.520 | 30000 | 1 |
0.525 | 30000 | 1 |
0.530 | 30000 | 1 |
Last trade - 15.43pm 17/07/2024 (20 minute delay) ? |
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