FAR

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Far spreadsheet late NOV post issue update, page-13

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pj

2,090 Posts.

26/11/15

17:26

Post #: 16486943
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Originally posted by pj ↑

For OOO again

With respect to the other points you have raised:

1. The issue of the relevant oil price to use to value a takeover. I have thought about this and touched on it before. Who knows what a private buyer might pay if their firm view was that prices would be much higher in the future, but in the more likely case of a public company they surely have a responsibility to their own shareholders and any expert valuation would take into account the market valuation at the time. I think I have previously demonstrated this will depend on the prevailing oil price.

2. Funding for the 6 well program - Whisky I think is right, we are only budgeted for the first three wells, the follow up wells are as yet undecided and unbudgeted. It is true that if costs have been overestimated then there may be some left over to partly pay for the next part of the program. For the spreadsheets I have assumed well costings that add to around US250m of the budgeted US330m gross and to account for the need for further raisings the sheet automatically issues new shares to keep the cash balance in excess of A$50m at all times That is to say that after the three wells that the spreadsheets cover, the sheets automatically create new shares at a 15% discount to the then prevailing price, and this is already taken account of in the market values shown.

3. Effect of success on the unproven potential. All undrilled potential is already built into the original sheet calibrations. The sheet then takes account of the effect of future success on these values by applying notional increases of COS and also applying notional efficiency premiums if it the find can be tied in without a separate development hub.

The real issue is whether I have set the value of proven reserves too low and that is yet to be tested in the market as we don't have any proven reserves yet. I can't find a single equivalent company to FAR which does not have complex holdings at various development stages with which to make a comparison and that in itself says something about how unusual the FAR situation is (or maybe that I haven't looked hard enough I guess).

Regards
pj

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I meant also to add that with respect to the way I have arrived at a value for proven reserves on the sheet please refer to the spreadsheet rationale at the bottom of the main spreadsheet post.

pj

FAR Price at posting: 7.1¢ Sentiment: None Disclosure: Held
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(20min delay)
Last 46.5¢		Change -0.005(1.06%)		Mkt cap ! $42.97M

Open	High	Low	Value	Volume
47.0¢	47.0¢	45.5¢	$31.34K	67.88K

Buyers (Bids)

No.	Vol.	Price($)
1	3338	46.0¢

Sellers (Offers)

Price($)	Vol.	No.
47.0¢	199900	2

View Market Depth

No.	Vol.	Price($)
3	90826	0.455
2	51822	0.450
1	50000	0.445
1	50000	0.440
1	50000	0.425

Price($)	Vol.	No.
0.500	10000	1
0.510	220895	4
0.515	103300	2
0.520	421965	4
0.525	100000	1

Last trade - 15.59pm 13/09/2024 (20 minute delay)

FAR (ASX) Chart

Far spreadsheet late NOV post issue update, page-13

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

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Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

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Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

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Far spreadsheet late NOV post issue update, page-13

Top Stories

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Utah authorities sign off on Anson's lithium extraction plans at Green River

Vulcan appoints investment bank and M&A veteran to board

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News