Ann: Quarterly Activities Report , page-18

Colquhoun....I think the point that Sydney is putting across is that FAR has entered Guinea Bissau at a very cheap entry level & the potential upside is great.
We all have different opinions & reading new info passes the time while we wait.

Hate to bring it up again but I think all of us LT Farites are still eyeing that Hardman Dream. The Hardman/Tullow story began with a 105 mill boe just north of Senegal after Shell walked out. Tullow is now reaching Major status if not there already. I dont why Delek walked & maybe they will be a player in Senegal, who knows. Im please they have though & given FAR more exposure on the SA West Coast.

Im not sure theres an abundance of quality previously discovered substantial 100 mill + deposits lying dormant around the world. Chevron spent 3.5 Bill on their Gulf of Mexico Tahiti field (500 mill boe discovery). I dont know of any 240 mill boe undeveloped discoveries in Australia, but would be keen to know whos got them.

Peak oil is starting to seriously bite & the present 70 to 100 mill boe World usage per day will seriously test current production/new discoveries as China & India gain the taste for Western life. Just going off memory I think the most oil ever discovered in one calendar year was in the mid 1960s.

FAR was given it's 90% stake in Senegal for nothing when Hunt withdrew. Other companies have had to pay big bucks for these opportunities on the SA west coast. Buying a 15% stake for 600k is cheap with a discovery well already on the leases. We shouldnt assume these opportunities come along for nothing every day.

From my perspective I'm giving ME a thumbs up for entering in Guinea Bissau. This not only gives FAR more exposure in the area, but is also building relationships to draw JV partners from. This is what he has done in the US. Over the years he has built up a large network in the US which has put FAR in its current position in SA.

From what I've read recently the cost of drilling has dropped dramatically since the GFC & we may find that exploration wells in this 30 to 1000m depths may be less than half of the $40 mill figure your quoting. Far spending around 2 mill with Svenska & finding another 200 mill plus P50 target would have to be a good thing. With FAR's 15% stake I can see our SP passing through 20 cents just on this alone. Far's 10% stake in China's Biebu Gulf saw the SP pass 20 cents on a 60 mill boe (approx) drilling success.

As you can see I'm extremely positive with this Guinea Bissau deal and look forward to Svenska announcing there drilling campaign after the new seismic is shot later this year.

Cheers

PDYOR