My thoughts are that the best offer we may get for FAR maybe...

My thoughts are that the best offer we may get for FAR maybe around cash backing. Realistically there is only one other bidder (WPL) unless FAR team can entice a merger.

Companies with no other source of income rarely trade at cash backing. In fact, they trade at hefty discounts to cash backing. FAR's future is for capital expenditure. Circa $5M/year for admin & wages and then expenditure on wildcats. Interestingly Guinea Bissau has had 8 coups over the past 50 years. The last was in 2009, so that explains why exploration has been so slow there and the leases change hands. Gambia now has increased costs and risks and bar FAR farming down to be majority free carried, I only see future drilling being a major drain on cash.

The best outcome would be a merger with a company needing FAR's cash and future payments like CVN at around cash backing, followed by a WPL buyout which could be in the 50c-60c rang and lastly this offer. WPL could save US $55M in future payments if they take out FAR. Is a potential US $55M significant enough to WPL to justify added expenses etc to transact a takeover? I'm not sure but unless another offer eventuates, I will be accepting the current offer.

Someone is buying above the offer price so there is some sort of expectation that a higher offer may eventuate.