Hey Beans I sense some chilli in those beans. I agree mate that while FAR as a company operates on a beer budget, ME had champagne tastes. In fairness though FAR operated a small team over the years and I thinks it’s fair to say as one of the biggest lease holders offshore Africa, plus their substantial other leases around the world ME wore many hats and earned his money. Other companies would have had several people carrying out ME’s duties and our current Flow/FAR team numbers probably represent a more typical team size for a company with FAR’s holdings.
As for FAR’s departure I read nothing more into it other than that he has retired. Cath Norman’s statement below says as much so I would expect that like the rest of us he is entitled to his retirement benefits and nothing more. There is no indication of any health problems and the term used is “retirement”.
19 April 2012 ASX ANNOUNCEMENT AND MEDIA RELEASE
Retirement of FAR Chairman
“Cath Norman, Managing Director of FAR said, “Michael had the vision to take FAR into exploration offshore West Africa before its prospectively was well understood by much of industry. As an early mover he has placed FAR in a position that will provide shareholders with exposure to these exciting projects in the future. I have enjoyed working with Michael for the past few months and join the rest of the board and staff in wishing Michael well for his retirement and wholeheartedly thank and congratulate him for his many fabulous years of service to the company.”
While we all missed the enormous wealth creation of the Kora dream, there were plenty of chances to take good profits leading up to spud. If you held and took a hit, than that’s the price you pay for investing in specs. PCL holders will face the same dilemma leading up to spud on Mbawa.
As for ME’s 400/500k per year, there would not be too many accountants out there with their own businesses earning less than this. 400/500 k pa only gets you a pretty ordinary Politian these days or a couple of truck drivers (who personally I think the truckies should be paid more than the polly). Read the excerpt below and ME looks like a saint compared to BlueScope Steels management.
“But the news has come with condemnation from politicians, with Independent Senator Nick Xenophon blasting BlueScope executives for pocketing $3m in pay bonuses over the past year, whilst sacking 1,000 full time employees, and 400 contractors. “This company is laying off 1,000 workers and it has it hands out for taxpayer support to the tune of $100m, yet it still has the gall to pay its executives these obscene bonuses,'' Senator Xenophon said.”
Anyway with all the animosity vented towards ME all I can say is I hope he doesn’t read HC and I still say thanks for placing FAR with interests on the East and West coast at bargain entry prices. Maybe the drill bit in a wildcat off Jamaica will deliver a bill boe to FAR.
G’day my old mate TG…..my thoughts on the the dilution matter: I would also have loved to see FAR holding the same number of shares with the same share base at which I first bought in at (100 mill) with their current assets but put simply this was never going to happen. IMO and as many others have posted before if AP hit oil in Senegal and PCL hit oil in Kenya, the newly acquired leases will hardly qualify as dilution. A proportionate increase in assets to increase in shares on offer in my books does not qualify as dilution.
Especially given FAR’s cash on hand and very large interests in their blocks. PCL’s latest CR was dilution, but a necessary one IMO given the quality of their assets. FAR acquired their Kenya blocks for only $25 mill and to keep these blocks required 3D which unfortunately costs money. A few hundred mill boe will more than cover this though. I’m confident that success around FAR’s leases will still see a TO sp price all LT’s will be happy with and new comers will be dancing in the street with current SP prices. I can see the latest batch of shares I bought at 3.3 cents buying me a new fishing boat sometime over the next 6 to 12 months.
Hope this new management delivers gives shareholders some positive news soon as the natives are extremely restless.
Funny I thought FAR took over FLOW Energy, but I think I may have missed something. Will FLOW (sorry FAR) be Melbourne based in the near future?
PDYOR
Cheers
FAR Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
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