An Ode to FAR....., page-83

Uncleart my gut instinct is telling me I'm hungry and it's time for dinner, shares ...........have no idea!

I love getting out the back of an envelope .....so lets seem how much FAR needs to spend and where it takes us?

CNE spending USD 492.0 majority on Senegal therefore if divide that by .45 (increased from 40% due to Pet free carry) total spend = $1,093USD

FAR share at 17%=USD $186 at .7 is $265 m AUD

Last time I looked we only had $83m in the bank and now need an additional $182m AUD.

WOW

Perfect logic so I must be right, or some of the North Sea spending is part of the USD $492m which is to come on line in 2017. We need to be very careful how we read these statement as we can get it very wrong!
If we had ORA drilling every day for the next 2 years at 1.2m per day (including all support vessels) that totals $876m USD which our share would be $149 USD or $213m AUD so only a $130 AUD shortfall. It's interesting to think that in two years we could spend 70% of our current market cap on drilling!!!!!!

That is a lot of drilling and how many wells can the ORA drill in two years, my guess would be about 12

Good news is CNE wouldn't be spending that money if IRR is not profitable, bad news for FAR is we need to come up with a lot of cash to stay in the game for the next two years. So will we be taken out, will the Chef get large SI or some other funding arrangement who know but that's why we are paying him the big bucks

The next step ,if we do a CR at .07c for $130m AUD then we end up with an additional 1.9b shares which takes us to 5.6b shares therefore being diluted by 34%

So we have three camps, those that believe there is no future and jumping ship now, those that think after the 3/6 well program is completed late this year we will be taken out and finally the long long long termers that think we may need to see out a few more CR and years?

Glad I didn't sell my FAR shares or give up my day job!

Time for dinner

DYOR