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Davy Boy

16,493 Posts.

3924

01/07/18

15:29

Post #: 34066314
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Originally posted by Good Oil ↑

Oh Dear... 'slip of the tongue'??
Perhaps the Australian report in March was also a 'slip of the pen'??

"In the last three years the markets for oil have just been decimated, but we're coming out of that cycle," said Cath Norman, who has run FAR since 2011. "There's been a lack of project sanctions globally and there's a lot of money around looking to be put to work, so we're getting a very good reception when we've gone out to talk about funding."

The big SNE field was discovered in 2014, not long before oil crashed on the realisation OPEC was not going to hold up prices by cutting production to counter the US shale oil onslaught. FAR has a 15 per cent stake in the field after farming down its interests to fund drilling.

Ms Norman said she did not expect to raise equity to fund what would be a roughly $US450 million first-stage share for the company. She said about half the cost would be funded by project debt and the rest, $US225m in FAR's case, would be funded by the partners.

"We're already starting to look at how to access it, not by issuing scrip, but looking at other means of finance, such as mezzanine finance, forward selling our oil or streaming," Ms Norman said. "I doubt we'll go to the (share) market for any funding."

The joint venture is due to put out a joint assessment of SNE in June and then submit a development approval plan to Senegal in September. A financial investment decision is targeted for 2019 and first oil is expected in 2022.

https://www.theaustralian.com.au/bu...s/news-story/40e4e6ff5d865c60560ebdcc76f47503

DYOR

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I asked the question directly to both CN and Nick Limb at the AGM about CNE saying 800 million for their WI to first oil. The room was told that first oil was phase 1........ they are the same thing.
I think you will find that FAR's number of 400-450 million is because WPL have been quoted as saying 3 billion to first oil which would make our share 411 million......although there have also been quotes saying a 25% saving was quite possible....CNE saved ~ 25% on both Catcher and Kraken. That would make our share about 310 million USD.
Now CNE, the operator, have clearly a different view than FAR and WPL on the cost.
I suspect we will get some pretty solid numbers very soon. DB

Last edited by Davy Boy: 01/07/18

FAR Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
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