you made a damn important point - while we all focus on POO, the negative sentiment within the O&G sector has created an opportunity that even FAR could not have envisaged - substantially reduced costs. Historically the 2 main issues for explorers are - drilling within budget and success. Guess what ? FAR has achieved both. The planets have definitely aligned for in regards to timing - We are in the troughs for POO. Senegal's true valuation will be based on POO 2-3 years from now and onwards. Hence utilise the low cost for exploration now and as the POO is forecast to be 60 is in the future utilise it when production comes online. Further this is in an environment of declining fields. Any prospective buyers like WPL are looking at LT assets which are profitable in this environment but lucrative on the future (tier 1, world class....). Also Senegal is seen as a major hub of the future. Hence the key to SNE is the priory of unlocking the resource potential of SNE. FAR is well and truly in the process of doing just that. Note back to when the WPL deal was announced and FAR'S response. From a FA perspective FAR is managing this very well. The key here though is the support that FAR - I am talking insto or major holders. So far they have been excellent in regards to CR. The key is whether they can align with retailers expectations and more importantly have extremely high SP expectations as ultimately it is the major holders that control the direction of the stock.
In regards to Tony, he just sounds like an emotional and nervous holder with extreme responses. He is exuberant on the way up and fatalistic on the way down. No matter what anyone says nothing will appease but a rising SP as that is his concern.
FAR Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
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