"Personally I think its now well past time existing FAR management was replaced. If they had engaged with shareholders and told us explicitly why they’d taken the recent financing / share placement decisions that have 1/2’d the share price that might have changed my mind."Its extremely obvious why they have taken the recent decisions , there were no other options. Anyone who had bothered to read what the Company has already put out would be well aware a massive funding package was on it's way and needed to be done before FID, which was expected ( not promised) by the end of the year...equity was always going to be a part of that.....now if you can come up with a better solution that works in the real world , not in the minds of punters, please let us know.
Companies won't give advanced warning of CR's for obvious reasons, but it's been known for some weeks now that we needed shed loads of money, equity was almost certainly going to be involved and with a relatively compressed timeframe to do it in..so CR was almost certainly coming but it's size and date of arrival unknown.
This was announced almost 2 months ago and effectively said selling down part of our WI is off the table. There has been more detail released since regarding the size of the funding required...it's all there if we look.
Funding options being pursued include:
‒ A senior debt facility with binding, credit approved terms to be announced prior to FID. The recent JV decision to purchase, rather than lease, the FPSO facilitates a materially higher senior debt tranche than previously being contemplated.
‒ A junior debt facility via an offtake financing with an international oil trader (and investment grade credit rating).
‒ A placement of strategic equity, which would reduce or remove the residual public market equity funding requirement.
‒ Supplementary options involving either the divestment of a royalty interest or a modest component of FAR’s working interest in the SNE project.
FAR never promised anything regarding PE dates other than saying it was expected ( not promised) by the end of the year, the 28th was first bought up by WPL I believe and has been promoted heavily by certain punters on HC since....As it happened it has arrived earlier but requires a final proceedures unknown to most as we hadn't read the full process, which was avaliable if we had bothered ..
Cheers Whisky
(20min delay)