OIL at US$100 Bloomberg, page-2

Couldn’t agree more, Spiro.

The Samo pre-spud tension is palpable, and the oil price is playing its part. FAR is like a giant rubber band being wound tighter and tighter in a number of respects:

> Samo-as-predicted promises to multiply FAR’s asset base by a factor of four at a time when ...

> The underlying value of that asset has tripled from its nadir of $US27.

> Its value to FAR has been further inflated by the falling Aussie.

> New oil discoveries are at a 30-year low.

> Fields continue to decline and production is further crimped by geopolitical issues.

> Basically every major Oiler in the world is hovering over the MSGB basin.

> FAR’s share price is being suppressed by increasing short positions that simply must be unwound at some point. And ...

> Our share register itself has tightened.

Within the next two months, FAR could be sitting on nearly half-a-billion barrels of recoverable oil. Success at Samo would further confirm the profligacy and distribution of the shelf edge play, with GB, SNE North and other mapped prospects moving up the batting order. At that point it would be difficult to see how FAR does not come into play. It surely will if the share price fails to respond as it should.

There is of course one caveat: PE lingers in the background like Banquot’s ghost intent on haunting McColeman just as he takes his seat at the SNE banquet. What price, if any, PE in a suitor’s valuation mix?

I’m certain now that FAR is intent on production and its long-term cashflow - basically unencumbered after three years or so, according to our Chairman. Whether it gets there is another matter.

But the price for not doing so is ratcheting up and will be tied to a skyrocket if Samo comes in.

Bought more today.

Yep, one week after declaring I was done!

OOO