andarko & others

I’ve just started taking a look at FAR.
And from what I can there are a lot of positives to come that can dramatically push the SP north wards.

The main driver will be any success by Anadarko and the build up over the next month or two as they approach their target.

They have recently spudded 2 wells that will cost in excess of $100m each. I see that someone on here has said that they have an awesome success rate of around 80%, so obviously they do a hell of a lot of work pre-spud to ensure they get things right.

The results from the Apache well drilled last quarter can not be underestimated as it proved there is a working hydrocarbon system in the basin where FAR have significant interests in L6 & L9, this increases the Chance Of Success for future wells.

If Anadarko over the coming months strikes oil you can be guaranteed that the value of L6 & L9 and all the surrounding permits will dramatically increase. How much, I’m not sure but I could see 3-5 times the current SP not a problem as the upside to FAR is huge. Given that these permits are right next door though it wouldn’t surprise me if the prospects Anadarko are targeting extend to FAR’s permits, if they prove our permits have oil its any ones guess how high the SP will go. Either way every major will be scrambling to get their hands on a permit anyway they can.
The beauty is Anadarko will be spending the $200m to give FAR the free ride.


“results from the high quality fast track data are very encouraging… A final decision on a drilling target will be made after the fully processed 3D data is received which is expected in early 2013.
Well planning activities for drilling in 2013 have commenced.”

The results of this “very encouraging” fully processed 3D which can be expected anytime now could also lift the SP.
This 3D should indicate a much higher chance of success for a drill and could indicate a huge potential resource. Quality 3D’s are what the big companies like to see when farming in. I think its worth holding just for the final results of this 3D, a massive resource estimate and high COS will be looked at very favourably by the market.


Senegal 100% - “During the Quarter African Petroleum confirmed its plans to drill the Alhamdulillah Prospect in 2013. This prospect extends into FAR’s Senegal acreage. African Petroleum estimated the Alhamdulillah Prospect to have 1.1 billion barrels of oil equivalent (BOE) unrisked recoverable volume.”

Once again another company is giving FAR a free ride, spending big $$$ to prove that FAR’s permit is apart of 1.1 billion barrels.
That’s right FAR will soon know if its acreage is a part of 1.1 billion BOE.

With up to 9 wells being drilled around FAR’s acreage soon and FAR also completing a well I can’t see the SP sitting around these levels for too long as the upside on success is mind boggling.
As an added bonus the cash position of $23m is strong and rules out any CR in the near future.