FAR Ltd shrugs off oil sector woes with ambitious Senegal venture, page-8

Hi DB

FAR said there would be nothing before SNE2 reaches TD. It further said it "will only provide material information when we have sufficient confidence to minimise misunderstanding and ensure that the market will be properly informed.”

Now you can argue the finer points of that statement until the cows come home, but it's intent is clear: To dampen shareholder expectations of imminent revelations.

FAR has reached a critical point in its existence. It has made not one but two massive discoveries which have also largely derisked a seemingly vast oil province and yet its share price remains stubbornly fixed at around half of what it was immediately post the SNE announcement. Again, you can mount convincing arguments as to why that might be - the OP, Farjoy's rush to accumulate, etc - but the fact remains that at eight cents FAR is highly vulnerable and the fruits of its endeavours might yet be enjoyed by an opportunistic predator. So make no mistake: Every announcement associated with this appraisal/exploration program assumes vital, if not existential, importance for the Company and will be treated as such.

FAR will strive to maximise the impact of the SNE2 results in order to get its share price moving and make any preemptive strike more difficult. Imagine if SNE2 comes in big-time but the SP fails to respond. We'd be sitting ducks ... except for two defences: FJ's blocking stake and money in the bank to fund not just two wells but near enough to six. I'm sure the Board would have reasoned thus when deciding to raise now rather than roll the dice.

IMO it has also factored a consolidation into its thinking and I believe that will come off the back of two strong appraisals at SNE. This will open our register to instos and provide further price momentum.

When back in early 2015 we ran a competition to name the Xmas SP, I plumped for 18 cents and only one punter was lower, on 16. Who was that? because we'll need your address to send your prize. I so wish it weren't thus, but Mr Market has proven to be a very hard taskmaster for Master FAR and with oil still struggling to emerge from its own version of the Roaring Forties there is little sign of that changing ... unless FAR can pull out a blinder at SNE2.

So my answer to your question as to when we'll hear something of note, DB? Later rather than sooner.

OOO

PS: I remain extremely confident that SNE will prove to be the monster we hope. The only question is, Will the market care?