Hi Saba the Hut,"funding long term to production remains the...

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Kimbo24

357 Posts.

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16/01/19

00:09

Post #: 37126047
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Hi Saba the Hut,

"funding long term to production remains the perennial question mark for FAR ! "

Loss of Control, from within could be another.
Meridian springs to mind here.

Elephants attract poaches inside the reserve
BabyRhino's are de-horned
And Bambi is vulnerable.

Kimbo007

Originally posted by szaba_the_hut: ↑

I didn't buy any FAR above the last CR price and held at an avg of 7.5c figuring it was fair value for SNE (low risk) at that level.

I hung in there last year for 15c to sell half my stock but missed it by that much.... ahh well back a near miss but down we go on Samo disappointment timed perfectly with a collapse in oil price. A top up under 7c sees my avg drop a little. I'm inclined to buy more but what is happening next?

Oil rebound - yes but when? Winter heating oil and gas use in EU and US my help but geopolitical is about to get interesting in summer IMO. My suspicion is that Trump is pulling the small scale US forces from Syria to reduce vulnerability in readiness for a significant confrontation with Iran.

In the next few months I expect we will see the finance deal from SNE JV , new oil code and new PSC (Exploitation). FAR will be able to draw down on the JV debt facility to fund initial development and kick offtake and/or mezzanine finance negotiations down the road a year or so or less if oil sentiment improves (for sweeter offtake deal).

In the Gambia I'm sure the border regions with Senegal (Saloo) will be drilled next and a CR may be required there unless a further farm down is the source of funds for that adventure and interest payments on the SNE debt facility.

With the over inflated elephant-shaped SAMO hype-filled baloon punctured and deflating rapidly we have additional challenges in 2019 in the shape of oil sentiment and funding long term to production remains the perennial question mark for FAR ! When the funding uncertainty is removed we can move forward with more certainty (unless it is a convertible bond type solution involved in which case I bail at the first available profit opportunity)

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FAR Price at posting: 6.6¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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