As the worst year for oil stocks in many years closes a hopefully better one emerges, we ended the previous year at around 8.8c and finished this year at 8.3c anyone taking up the full entitlement would be almost square for the year which is not a bad result considering events and the long wait between drilling.
This is the year of the Elephant , when the truth will begin to emerge and I for one look forward with great anticipation to the unfolding events , there will be a lot of them.
For myself the most important single update of last year was the last one " results are in line with pre drill expectations" , in the extremely unlikely event of failure it was all over for FAR , SNE is the main event.
This was added to by CNE seeking someone to head up the start of the development process....that position was sought after TD and going by the date most likely after the initial testing of the bottom zone at least ..that part is speculation on my part but they would likely wait to get a flow indication before commiting IMO... they could have started that process immediately after TD which was the 3rd Dec or after the logging on the 10th Dec..it was advertised on the 23rd Dec....
So we await testing results which I'm very relaxed about, the main issue with testing IMO will be the pressure build up between tests. Then onto SNE 3 which aims to establish the reservoir quality of the thin sands in the outer regions, then on to BEL 1 to do the same with SNE but also look at the Bellatrix formation....exciting times for a tiny oiler..and then we have the contingent wells...
The shareprice going forward is as always unpredictable and will be obviously driven by results, dilution and the oil price , I would be very supprised if oil price and the share price isn't higher this time next year but won't go beyond that expectation as events rarely work out as imagined and I have a vivid imagination..
With regards to patience, FAR is really no different than any other stock trying to make it in the world, it takes time to build a company..in my experience a large amount of gains in share price are done over very short periods with long spells of waiting in between and the biggest gains are made off a low base or left field events..
If you are not in you can miss them.
We really do have a good forum and some great contributors , because of the long spells between action much becomes repetitious , as is the above..
but it helps reinforce the potential this Company has and at the moment that is all it has , this is the year that will start to change...
If I was to pick a well that would derisk the whole year for me, beyond the one we are on, it would be SNE 3 after that it will be bonus..
Cheers Whisky
