Gold Coast Presentation

Below is my take of the Investor Presentation at the Gold Coast. A lot of previous comments are not included. My interpretation only.

Gold Coast Investor Presentation
Intro: Cath started the show by introducing a slide of the FAR management and describing their background. Cath is very tall had to take off her shoes to talk into the mike as the mike was for average height.

SNE-1: the biggest oil find in 2014 and 2015 to date

Drilling: FAR's contract for drilling in Senegal was $200m and they expected it to cost about $160m leaving $40m to FAR. Costs blew out and they had to pay.

Finance: Mid-year FAR expects to have $33m with all drilling costs paid. This will pay for costs until Q1 2016

Value: Brokers value FAR between 20 - 26c per share

ASX 200: Expects to make the ASX 200 early next year if Market Cap keeps growing. If they make the ASX200 then index buying should occur

Focus is on West Africa. They have found large quantities of oil and will hold on to it with both hands. Cath goes to Senegal every month

Rig Costs: previous total drilling cost was 1.3m per day - the Ocean Rig Athena $900,000 per day. Ocean Rig Athena contracted until May 2017. CNE do not want to start Rig contract until mid Sept - Hopefully start drilling SNE-2 on Oct 1

SNE-1: Hope to get the 670m Barrels due to thin sands.
3 well program (positions undecided at this stage) First well to confirming 150mb, 2nd well to confirm 330mb and third well probably Bellatrix (not yet decided) - drill bellatrix and then through Bellatrix to the thin sands of SNE-1 and hopefully more SNE-1 oil. (SNE-1 should be under bellatrix)
They will keep drilling if they find oil. Hope to find 1b boo recoverable.
They want to find all of the oil first then develop the site. This saves costs. Not financially viable to plan development for 300mb if they have 1boo (one set of infrastructure costs)

COP is planning the conceptual development work- Gas used for reinjection to keep up pressure and powering FPSO

FAN-1: Oil cooked in source kitchen - has 'shitload of oil' (I am sure Cath said this) The 29m net oil play and best oil gravity API of the FAN drill was in the Beer prospect. Porosity was world class standard of 20-24%
Question Time from the floor and discussions with Cart and Gordon (Answers):

More Acreage: FAR are looking to get more acreage. They believe the edge of the shelf play is where the oil is. A company to the south of them (would not mention which company) have some data but do not know how to read it. FAR are currently in London looking at the data and hoping to get a good percentage of the acreage (more than Senegal) in exchange for their knowledge and drill data and costs of seismic about $5m.

Takeover: FAR have NOT received 1 offer. Cath was adamant about this.

Joint Venture: FAR, COP and CNE all have a fantastic relationship.

Naming of Prospects: President of Senegal will rename the prospects at some time for his recognition

Exploration Company: FAR now recognise themselves as an appraisal and development company (different to what was said previously)

Selling of oil: Operator usually has selling rights

Credit Raising: No immediate plans. FAR need to know how much money they require first before making decisions on a CR. The first CR would probably be to shareholders.

Consolidation: No plans at this stage however would need to be done at some stage. Probably when we have good news regarding the results of a drill.

Share Registry: Asked about the capping at 10.5/11c and is anyone accumulating. Answer: No one is accumulation Cath diligently checks the register daily and there is no one accumulation. There has been a some new shareholders in the registry since the entry into ASX300 and the presentations.

US Companies: Some big US companies like the FAR story but will not buy penny stocks. Price must be at least $1 to $2. Consolidation would give more recognition to FAR.

Wilsde