Chairman's 2018 Address

https://far.live.irmau.com/irm/PDF/2380_0/Chairman39s2018AnnualGeneralMeetingAddress

Just been reviewing what was said and where we are at now and progress, if any - dated 13 March 2018 (incorrectly labelled as 2008 in typical fashion)....

I am certain you will have noticed that our share price has been trading in a very tight band roughly between 7.5 and 8.5 cents for much of the past year. This has been frustrating for the company and I am sure it has been just as frustrating for our shareholders.

GOOD TO RECOGNISE THIS BUT - THIS CERTAINLY HASN'T IMPROVED. IF 7.5 WAS FRUSTRATING, THEN 5.5 IS A WHOLE NEW WORLD OF PAIN AND COMPANY HAS GONE INTO SILENT MODE.

The cost of developing offshore oil reserves, and FAR’s exposure to its share of the cost of developing the offshore Senegal fields, are two factors that the share market is naturally concerned about but is a normal part of the process with which we have much experience. ..... I am encouraged by the number of options appearing as we work on the financing task and I am confident we will achieve a sound outcome.

GREAT NEWS ON THE MANY OPTIONS - NO UPDATE ON ANY OF THEM TO DATE, EXCEPT MAYBE/MAYBE NOT SELLING SOME SNE STAKE WITH CNE

Under the ICC arbitration rules, the final award is to be issued within six months of the signing of the Terms of Reference. If the arbitration outcome supports FAR’s claim for “declaratory relief”, or in other words granting us the opportunity to have our pre-emptive right properly recognised, then FAR will have the right to purchase COP’s 35% interest under the same terms and conditions as Woodside. The arbitration process holds no fears for FAR and should not cause shareholders any real concern either. We have consistently maintained that the US$2.20/bbl price paid for the Senegal barrels was a low price and we want to opportunity to consider purchasing those barrels at the same price.

GOOD THAT SHAREHOLDERS SHOULDN'T BE CONCERNED, EXCEPT FOR THE 5.5C STATIC PRICE THOUGH. WE NEVER ACTUALLY GOT AN UPDATE WHEN TERMS OF REFERENCE WERE AGREED DESPITE EARLIER COMMENTS THERE WOULD BE ASX RELEASE

The operator has recently released information pertaining to the economics of the Senegal development. The project is not only break even at US$35/bbl but at an oil price of US$70/bbl at FID, the NPV per barrel is US$10/bbl. Clearly the oil price is in recovery mode and we are seeing a lot of strategic interest in these barrels.

BRENT OIL PRICES NOW AROUND $55US FOR 2022, WE GOT AN UPDATED PIE CHART SHOWING $90M FCF IGNORING FINANCING COSTS AND SUBSEQUENT OIL PRICE DROPS, SORT OF LIVING IN FANTASY LAND ABSENT OF REALITY

Enough is enough. No progress. No communications. No trust. No value created. Let's get some changes happening.

Invite takeover talks or sell SNE stake and give stakeholders a return.