FAR News Coverage overnight

Love the quotes from the brokers: 21c fair value

http://www.theaustralian.com.au/bus...ts-oil-discovery/story-e6frg9lo-1227084301352

FAR hits right notes with its oil discovery

• THE AUSTRALIAN
• OCTOBER 09, 2014 12:00AM

FAR Limited (FAR) 14.5c
FAR, a long, long way to go?
The sound of music to investors’ ears, a mob called Farjoy yesterday upped its FAR stake from 7 per cent to 10 per cent in a $10 million plunge.
Headed by Tim Robertson QC, Farjoy is a family trust and started buying in June when the stock was at 4c apiece.
Hypothetically, we speculated about whether brother Geoffrey might be involved in this bold punt on this Senegali offshore play producing the good oil. But Lette’s just say the famed advocate and his author wife are not in on this caper.

FAR shares yesterday surged 4.5c, or 45 per cent yesterday after Tuesday’s revelation of a “significant” oil discovery at its offshore FAN-1 well.

FAN-1, drilled to almost 5km in 1.4km of water, has unearthed what the operator Cairn Energy refers to as a 950 million barrel resource, based on 50 per cent probability.
The second well, SNE-1, targeting 600 million barrels, is due to be spudded shortly.
Having farmed out interests to operator Cairn and ConocoPhillips, FAR has a 15 per cent stake and is free-carried to the tune of $200m across two wells.

Dubbing the discovery as “fantastic”, broker RFC Ambrian ascribes a 21c a share fair value to the stock.
Ord Minnett plumps for a “mid-case value’’ of 20c a share and notes that FAR is well positioned to raise capital for additional appraisal wells.
Criterion is wary of previous hyped-up offshore programs that ended in tears, such as Tangiers Petroleum’s duster in Morocco and Neon Energy’s Vietnam efforts.
FAR shares traded at 3.5c a month ago and, unlike the decent oil, haven’t gone undiscovered.
In deference to family Robertson’s intimidating collective IQ, we ascribe a hold call.