poly is this your next rsl, page-6

On the website poly, its also great to see the Hartleys buy recommendation.

http://www.far.com.au/files/research/Hartleys%20Research%20FAR-20070226.pdf

As you'll see in the report, they suggest FARcould be the "next Hardman?".

Hardman Oil and Gas remember, were sold to Tullow Oil of the UK for $1.3 BN USD + only a year or so ago. And that was when oil was at $50USD. They'd be worth $2bn + now.

Hardman by the way, were one of the greatest sucess stories for oil exploration companies. They started with nothing, and ended with...well...$1.3bn or so cold hard cash...




From the Hartleys report:

"First Australian Resources Limited (“FAR”) has a 30% interest in three offshore blocks in Senegal. It is participating in a 3D seismic programme which has commenced in February and has the potential to unlock significant value. The programme is expected to validate and generate a
number of large drill targets. FAR is the only ASX listed junior oil and gas company with exposure to the offshore West African margin. The Company’s JV permit is surrounded by ground held by a number of major oil and gas companies including Tullow, Woodside, Premier and Dana. With success, FAR has the opportunity to become a significant company
in much the same way as was achieved by Hardman Resources Limited (“Hardman”) before being taken over by Tullow Plc.

We believe FAR will be recognised for its strategic position as activity in West Africa continues to accelerate. We continue to rate First Australian Resources Limited as a Speculative Buy.

Investment Highlights

• Leveraged Exposure to West Africa – With unprecedented interest in high impact acreage in West Africa, FAR has the opportunity to deliver significant value from its Senegal acreage. As a result of its solid equity position (30%) in three offshore blocks, FAR has the flexibility to farm-out a portion of its equity to be free-carried through any offshore drill programme should it so choose.

• Senegal 3D Programme Underway - A fully funded 2,050km2 3D
seismic programme is currently underway in Senegal that is expected to both validate and generate a number of large targets. The seismic survey is expected to be completed by early April. Large potential closures have been identified through existing 2D seismic shot in the 1980’s by Shell and others. The C1 prospect has potential for between 180-320mmbo and the N3 prospect 120-418mmbo with a number of leads identified with good potential for >1 billion barrels.
Drilling of prospects identified from the 3D programme is likely to occur in 2008.

• Potential for Large Discoveries – The north west African margin is relatively under-explored, but hosts numerous recent, sizeable discoveries including the Woodside operated Chinguetti and Ti of discoveries in adjacent Mauritania.

• FAR the Next Hardman? - Analogies can be drawn between FAR
and Hardman Resources Limited (“Hardman”) which originally had a market capitalisation of only $10m in 1999, and was recently taken over by Tullow Plc for $1.47b. This significant increment in value can be attributed predominately to the Mauritanian assets.

• China (FAR 5%) - In June 2006, operator Roc Oil Company Limited(“ROC”) announced the discovery of the Wei 6-12S field. It aims torapidly develop the field. Overall, we believe the China Block has the potential to be worth ~10.4cps to FAR (risked)."

* Steady North American Business – FAR’s strategy has been to participate, as a non-operator, in a combination of higher impact and low risk development opportunities with experience, reputable partners in North America. Recently, FAR is participating in the Texas 3D project (34%), which aims to generate ground floor opportunities. This will allow FAR to either retain its 34% stake and/or be free carried through drilling by farming down their interest.