I have worked now (in an oil and gas service company) on about 12 new projects in asia and none of them have ever gone to the original timeframe...and this is Asia where many of the projects required only land rigs or quite easily available jack ups...deepwater rigs are in huge demand right now and that is what worries me. We just had a project here in south China that has been delayed by 12 months because they cant get a deepwater rig for it although they had one lined up that fell through...it was a supermajor too (BG).
If FAR have a partner and a drilling plan lined up then Senegal will give them the new licence for a further 12 months...that is not an issue.
I hope I am wrong as I hold a lot of these and wouldnt expect the price to drift much lower so i certainly have no agenda. Just trying to be realistic.
JV announcement is open for the timeframe...could be soon could be 4 or 5 months time, agreed on that. But actual drilling will take longer. Still definitely a buy but will take time.
FAR Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
