FAR - Cat Among the Pigeons

DJ FAR to Put Cat Among Pigeons in Senegal Oil JV? -- Market Talk

01 Aug 2016 11:07:01

0106 GMT [Dow Jones] Citi saw Woodside Petroleum's (WPL.AU) entry into a joint venture appraising oil discoveries offshore Senegal as a good thing because it would mean all partners, including FAR (FAR.AU) and Cairn Energy (CNE.AU) had a vested interest in progressing a development quickly. So why is FAR, which owns a 15% stake in the license containing the SNE and FAN discoveries, mooted to be looking at a deal that could lock Woodside out? According to the Australian Financial Review, FAR has sounded out backers about a possible move to lift its stake beyond an existing 15%, presumably using its pre-emption rights. "Conceptually, if the Woodside acquisition is seen as a good one (price) for Woodside, it could be argued that it would be for another external party," Citi says. "It is not unconceivable that FAR could explore back-to-backing a deal with an interested party, at the same price, with perhaps some quid pro quo." Citi keeps an outperform call on FAR and A$0.12/share price target. FAR last traded at 8.1 Australian cents. ([email protected]; @dwinningWSJ)