FAR

2.00%

49.0¢ far limited

Keeping tabs on value and history, page-7

First 7 Last

Share
Profile

Follow
noairbags

3,371 Posts.

101

08/04/17

07:18

Post #: 23949519
Share

Originally posted by Kfann ↑

Hi all,

Every now and then, I do a look-back to see how management are really spending our $ and what they're achieving with them. I do this (in context with other metrics like estimated additional resources and likely spend to FID) to assess if I'm better or worse off participating in each CR...or waiting until later.

History: Far were essentially free carried through FAN1 and SNE 1 which CNE announced pretty quickly had 2C resources of 330mmbbls in Nov 14. In Aug 16, FAR announced after BEL1 and SNE4, 2C of 641mmbbls. So FAR have essentially been using funds to increase this resource base by 311mmbbls.

FAR only start dipping into their exploration pocket in Sept 14 so between than and end June 16 (the point at which Bel1 and SNE had been taken into account), FAR had spent a total of A$122.5m on all exploration efforts (according to their 5B's). Lets assume that $7.5m has been spent on other non Sangomar Deep projects which leaves A$115m. I also note during this Sept14-June16 period they spent A$6.91m on admin...this is only 6% of exploration spend which is more than reasonable in my experience.

Anyway, they spent A$115m of shareholder funds to find an additional (311*15%) 46.6mmbbls at A$2.47/bbl (or US$1.85/bbl).

This is a metric that almost very oil exec would sell their souls for.

By the end of the current 3 well program (I'm not including the 4th exploration well yet), they would have spent an additional A$43m (my estimate) which could see a 15-20% (my guess) uplift in resources (due Sept Qtr). This'll equate to adding resources at a cost range of A$2.24-2.98/bbl.

Still an amazing performance metric.

So they ask for $80m to spend on:
- an additional Sangomar exploration well (cant wait for this one!),
- upgrade prospects and possibly drill one well (largely funded by their new Yuan buddies?) on their high interest/high impact acreage
-More 'opportunities' (my expectation) as the CNOOC/FAR alliance develops.
-SNE FEED work.

(I don't believe for a moment they they are going to disappear into the relatively boring news and SP black-hole that FEED work normally creates)

So I'm more than OK with all that. And why not?

We have 15% of a truly world class, high quality oil system here people! I suspect many of the more impatient posters on this chat site really haven't fathomed what that means.

More History: 34 years ago, Woodside struggled to hold onto just 16.6% of the NWShelf and had to dilute shareholders 400% (sold 80% of themselves to BHP and Shell) to do so. Gee, only a 50-bagger since.

So stop the BS whingeing about 'dilution' and back a future (potential) WPL.

Cheers,

PS. I absolutely love it now the SP is no longer under the PE spell. Only upside (huge) from here in that regard.

Expand

What makes you think the sp is no longer under the Pe spell?

FAR Price at posting: 8.7¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

BUX

Buxton projects new graphite province discovery at WA Narryer play

BCI

BCI reaches close of funding facility for salt-first part of Mardie project

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

WCN

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

NTI

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

CKA

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

There are more pages in this discussion • 4 more messages in this thread...

First 7 Last

Add FAR (ASX) to my watchlist

(20min delay)
Last 49.0¢		Change -0.010(2.00%)		Mkt cap ! $45.28M

Open	High	Low	Value	Volume
48.5¢	52.0¢	48.5¢	$101.9K	200.6K

Buyers (Bids)

No.	Vol.	Price($)
2	48741	48.5¢

Sellers (Offers)

Price($)	Vol.	No.
49.5¢	1786	1

View Market Depth

No.	Vol.	Price($)
1	41741	0.485
1	5000	0.480
1	10000	0.475
2	65000	0.470
1	50000	0.465

Price($)	Vol.	No.
0.495	1786	1
0.500	15000	1
0.510	25000	1
0.520	226386	4
0.530	1005	1

Last trade - 15.59pm 04/10/2024 (20 minute delay)

FAR (ASX) Chart

Keeping tabs on value and history, page-7

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Buxton projects new graphite province discovery at WA Narryer play

BCI reaches close of funding facility for salt-first part of Mardie project

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Keeping tabs on value and history, page-7

Top Stories

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Buxton projects new graphite province discovery at WA Narryer play

BCI reaches close of funding facility for salt-first part of Mardie project

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News