Extremely Rough Value Calculation, page-197

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szaba_the_hut

14,139 Posts.

705

07/07/20

17:27

Post #: 45703114
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Originally posted by PhillW: ↑

This will not help them to borrow funds, if this was financial advice from banks Show me where FAR has borrowed money from any financial institution and is in default of such loan! Next you will be telling me that the $50 I borrowed from a relative and did not pay back on agreed date was taken by financial institutions as credit history! Total garbage! The rubbish spewed out on this forum by either the uneducated or persons pushing their own agenda never cease to amaze me! We have people giving opinions and advice on contractual legalities and from what they have written it is plain to see that they have NEVER negotiated and maintained contracts.

FAR is using the JOA to its advantage, period! If it wasn't in the JOA then FAR would not be able to utilise their current strategy so from a commercial sense it is LEGAL. Has nothing to do with financial institutions assessing their credit worthiness. Now if FAR had zip in the bank and defaulted on $12M owed to a financial institution then a different story. FAR has approx US $80M in the bank and thus can meet current outstanding commitments. As for when the next call is defaulted well FAR will have to release an announcement on the day that occurs and the countdown will be 6 months after that date. So to January 7th 2021, FAR has US $12M to pay by December 24th 2020to keep their working interests.

We also have know it alls spruiking future cash calls. The JV don't know what the future cash calls are yet we have the intellects on here telling us otherwise. FAR has already advised that US $117M has been pushed out to later dates meaning FAR could potentially save US $16M in 2020 cash outflows. That information was over a month ago so in all practicalities there will be additional adjustments.Whether through savings in contract renegotiation or from commitments moving out into 2021. I bet London to a brick that those estimated cash outflows were estimated on pre Covid-19 pricing. The fact is, today the buyer is in a hell of a lot better position than what is was in 2019. As I said, I wouldn't be surprised to see a 10% saving on the fpso and 20% for the rest. Drilling costs have plummeted and I wouldn't be surprised to see a saving in excess of 20% for the drilling costs. Fuel for example is at least 20% cheaper, so there is a flow on effect.

It would be a tragedy to see some people sell out of FAR when the current sp is backed by cash on the total rubbish spruiked by some. Risk/Reward as it stands now then FAR is a no brainer as the market stands today. Obviously things can change in the future so investors need to keep monitoring the markets.

This is not investment advice.

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I didn't say it was illegal - I just said using default provisions in a JOA wont help FAR to borrow funds in the future.
Do you think an oil company defaulting on JV cash calls will be overlooked and ignored by banks when a loan application is in play and they are determining the risk they apply and the interest rate relative to the grade of risk?

If this action doesn't impact the financial risk profile for loaning cash to FAR I will eat my hat!

That said, I am not a bank employee I am just a mug investor who voluntarily gave them my money in the hope they could add value.

FAR Price at posting: 1.1¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 50.0¢		Change 0.000(0.00%)		Mkt cap ! $46.20M

Open	High	Low	Value	Volume
50.0¢	50.0¢	50.0¢	$10K	20K

Buyers (Bids)

No.	Vol.	Price($)
1	36600	50.0¢

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Price($)	Vol.	No.
50.5¢	118092	4

View Market Depth

No.	Vol.	Price($)
1	36600	0.500
2	47591	0.495
1	99999	0.490
2	104597	0.485
4	260000	0.480

Price($)	Vol.	No.
0.505	118092	4
0.510	133895	2
0.515	120000	2
0.520	285293	3
0.525	118000	2

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Extremely Rough Value Calculation, page-197

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Extremely Rough Value Calculation, page-197

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