drilling has commenced, page-7

I found this statement in the announcement particularly interesting:

"Based on current well cost estimates, the carry funding and cash payments that FAR has or will receive under the farm out agreements are expected to be in excess of FAR’s share of the combined well costs for the two wells."

Reading between the lines, this seems to mean that there could be circumstances where FAR's share of the well costs may exceed the carry funding and cash payments that FAR has or will receive under the farm out agreements, although this is unexpected.

This is exactly what happened with Neon in the two wells off Vietnam. Well costs blew out beyond expectations and have almost sunk the company.

Hitherto, it has been stated that FAR will be free-carried for the two wells that are about to be drilled. This now seems to be true only up to a point.

I am still weighing up whether to have a small punt on FAR and the price is becoming more attractive daily. If I do, I will be very aware of the risks and I won't put my shirt on it.