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Davy Boy

16,614 Posts.

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26/10/16

15:50

Post #: 20140718
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Originally posted by szaba_the_hut ↑

DB, stop being so paranoid. Gone = committed. FAR and JOA partners are proceeding to spend that money (less potential savings from good negotiation with drill ship contracts) on a drill program. That is a good thing. When connectivity is proven that is another boost to the asset value.

FAR will need additional cash to PE. Cash might come from sugar daddy or finance provider willing to take a chance on oil market recovery but both of these are uncertain at the moment.

FAR will need cash to do further drilling and development in both SNE and Djiffere.

If they can wrangle some cash from the COP sale process in return for not using PE that would help delay further cap raise but if they don't get to PE and just continue as is they will do a CR before end of this FY IMO. On the basis of connectivity proven and increased probable oil recovery I don't think it will do a great deal of harm short term and is great long term. If they drill Djiffere in 2017/18 and have success then farm out will generate some cash there too. Until 2021/22 FAR will need cash and the way FAR management are playing it is pretty close to optimal IMO.

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This is HC paranoia is required......vested interest abound on here.
Im not sure how you think FAR are going to spend 60 million on 2 wells? My estimated cost for both is around 20 million.
As for Dijffere I'll be very surprised if we don't get free carried for at least 2 wells. If the lease is as good as FAR intimate I don't see any problem. If they drill a 3 rd exploration well then I'm expecting that to cost FAR around 9 mill.
So worst case 30 million + 10 for contingicies leaves us with around 20 mill. AIMO DB

FAR Price at posting: 7.8¢ Sentiment: Buy Disclosure: Held
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