Bell Potter analyst outlook. FAR (FAR) (Speculative) Front End...

Bell Potter analyst outlook.

FAR (FAR) (Speculative) Front End Engineering and Design (FEED) for the SNE oil field began in December 2018 as the SNE joint venture (JV) (in which FAR has a 15% contributing interest) moves toward the Final Investment Decision (FID), which is due to be made in 2H of 2019. First oil is expected in 2022 and first gas in 2024 from what is expected to be a highly attractive operation initially producing ~100k barrels of oil per day (bopd) at Stage 1 with upside to ~150+kbopd from high quality reservoirs containing ~5 Billion barrels of oil. The SNE JV is also planning to appraise nearby discoveries at FAN, SNE North and FAN South. FAR is planning to explore further in its two blocks in The Gambia (where it is Operator with a 40% interest) because while the recent Samo-1 well was unsuccessful, it confirmed the hydrocarbon potential of multiple attractive and significant prospects and targets. Arbitration on FAR’s rights to pre-emption of the 35% ConocoPhillips/ Woodside Petroleum stake in the SNE JV is finally due to be held in mid-July 2019, which could ultimately provide further upside for FAR. Speculative Buy, Valuation $0.22