Morninng Farites,
An interesting article from Energy News this morning - particularly for us old timers!!
Letter to the editorWednesday, 22 June 2016
FORMER Victoria Petroleum managing director, Greenearth Energy director and frequent letter writer John Kopcheff has responded to yesterday's brief reporting on FAR Limited being recognised for its success in Senegal, saying it should also win 'Deal of the Decade'.
Very encouraging for the Junior end of the Australian oil exploration industry delving in foreign climes to be recognised for their success.
As well as FAR being awarded the ‘Breakthrough Company of the Year’ at the annual Africa Assembly in London held by the prestigious Oil and Gas Council, FAR’s entry into Senegal and ensuing success should also be a very strong candidate for African “Deal of the Decade”.
I say this as I remember when the founder and driving force behind FAR’s entry into Senegal, chairman Michael Evans, some 10 years ago, told me he had this great deal offshore West Africa. I thought "very brave, adventurous, high offshore drilling costs, death to juniors, sovereign risk” and many other descriptions came to mind.
As subsequently proved, great insight by Michael and FAR to take up the opportunity in an area written off by the majors as ‘whale pasture’, shoot 3D and Michael then to spend the next six years on the farm-out trail presenting at conferences and any opportunity available, this ‘great’ offshore exploration farm-in deal.
The old hands can well remember the innovative 3D farm-out presentations of the Senegal play and numerous FAR farm-out booth displays.
Many looked, but no movement at the station. Perhaps some of the lookers could now say “Opportunity once knocked at my door, but it was only asking for directions”.
Michael retired after 20 years at the helm of FAR knowing that serious farminees had been introduced to the Senegal permits and that drilling would take place.
The work of securing these farminees, Cairn Energy and then ConocoPhillips, was continued by Cath Norman and her team resulting in outstanding exploration success and a new West African oil province.
Why is FAR a candidate for “deal of the decade” at least in the African exploration scene? Well, FAR picked up a 70% interest in the permit from Hunt Energy for one Yankee dollar years ago. That dollar now accounts for FAR’s entire market cap of in excess of $340 million.
In anyone’s language that’s what you call leverage.
Initially the only real Australian junior oil exploration success story in Africa was Hardman Resources offshore Mauritania due to the efforts of Ted Ellyard and his team.
Congratulations to FAR for being the second junior Australian oil success story in Africa due to the pioneering efforts of Michael Evans and the continuing good work by Cath Norman and her team.
John Kopcheff
Evans is now non-executive chairman of Alaskan pioneer 88 Energy.
Cheers
BF
(20min delay)