Giving credit where it is due, I think that Cath did an outstanding job at FAR leading to the successful discovery of a major deepwater oilfield (Sangomar) in Senegal.
Starting at the merger of FAR with Flow Energy in late 2011, when Cath was the Flow Energy CEO. She managed to negotiate an amazing deal for the Flow Energy shareholders (I was a holder of FAR) that valued some pretty ordinary assets in Jamaica (subsequently relinquished) and Kenya at a significant premium.
Cath subsequently took over as CEO of the merged company and led FAR (from memory there was maybe 3 or 4 other employees) in the highly successful farm-out of acreage in Senegal to Cairn Energy and shortly after, bringing in a second farm-out partner, ConocoPhillips. Total investment of some $190m and FAR 15% interest being free-carried on a two-well program. This JV culminating in the successful drilling of FAN-1 followed by a 2nd play, SNE-1, wells in Senegal and resulting in a significant oil discovery leading to a share price appreciation in the multiples.
Keeping in mind, Cath had farmed-out this project after Shell, an industry supermajor, with significant knowledge and experience in deepwater exploration and an extensive history in West Africa, had walked away from an earlier farm-out deal with FAR on this acreage in 2009 after a questionable CSEM survey.
Cath steered FAR through the years without the benefit of any cash generating assets, particularly the oil industry crisis of 2014-16. This period was absolutely brutal in the industry with many operators, explorers and service companies going under. And went on to successfully farm-out The Gambia blocks to the likes of Petronas.
I am not so quick to throw Cath under the bus for some of the subsequent events (dusters in The Gambia and the Senegal JV issues involving the major partners).
I have bought into BOA on the back of Cath.
GLAH
BOA Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
