Ann: Annual Report to shareholders, page-65

The detail in the annual report is a good thing (and finally). For the first time the actual situation is known...the covers have been taken off!

Whilst not a particularly pretty picture, FAR is not YET in its death roll...there is the potential for resurrection here. We have $$s on hand, we have no debt, we have time, we have multiple assets and we have a major world recognised project (sheeesh how can we be on our knees then??).

Well, we are on our knees because imo (FAR) have played the game poorly. Believing their own press (through picking up awards, reading positive articles, probably believing Senegal will have their back at any cost), taking an at times overly 'tough guy' approach ("we will not be bullied by WPL") but without the ability to recognise when we were being outflanked and out manoeuvred, setting deadlines and not meeting them and then not better communicating. An overly optimistic view of their ability to finalise funding (I still remember the CN comment that FAR was probably more advanced in their financing than WPL!).

IMO the arbitration stubbornness was possibly the single biggest error once it became obvious it was being pushed out further and further...one year out to three years, $1m out to $2m (if their advice from the major lawyers was so strong and positive, then why after this loss are we paying them??)

But, apart from what we have in the bank and our assets, the other positive we have is the major shareholders on the books. These guys have invested heaps into FAR, in many cases have links to banks, also pride themselves on being great negotiators and dealers. These shareholders know the value in our major project and my hope is they will now start to use their expertise and power to get some traction. Instead of asking FAR what is happening, it is time they insisted an immediate plan, and if that plan does not cut it (in their eyes) to then provide management the 'ádvice' they probably could have done with some time ago.

I'm happy to provide anyone accolades when they do well, but likewise when things go off the rails people have to take responsibility and be accountable. FAR is part owner in one of the hottest acreage in the world, had 11 consecutive successful wells, reached commerciality on the largest oil find in 2014 and approved FID on a project that is seen as very profitable in the near future...and yet here we are a share price of 1.2c, a market cap of just $98m, and collapsed funding. This is not due to Covid-19.


dodds