SAMO pre drill might go to 14 cents.
The reason being the SOI will be and is a major draw down on any premium.
Taking CVN as an example they had 2 drills going at the same time, both were touted as gas/condensate.
Dorado came in oil and the spike ended up from 17 cents to 25 cents.
Keep in mind CVN has one fifth SOI compared to FAR so that translates to a 50% premium.
So that translates to a 10% spike for FAR on a reasonable result which is 1.2 cents but I'm being generous.
I doubt the amount of oil being touted will be found as its prospective only but if by some chance it is then the spike could be 16 cents.
One only has to look at RISC estimates of FAN/SNE pre drill.
If SAMO is a fail or inconclusive the SP will fall sub 10 cents IMO.
All this IMOO and keep this post to see if I'm right.
I was spot on in the guess what price competition in comparison to the outrageous other guesses.
So lets see.
If SAMO is a fail then I only see SP pressure.
FAR Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
