FAR now trading at cash backing. If WPL was to pay FAR the same...

FAR now trading at cash backing. If WPL was to pay FAR the same price as it payed COP then FAR would get US $185M ( AUD $286M) plus cash on hand of AUD $168M which would equate to AUD $471M or 4.7c per share.

The only way we see value in the short term is if CNE are taken over by an oil major or put more than the 20% up for sale. Then, FAR's 15% becomes critical to the company that wants to be operator. But CNE is still valued at US $5B so a rather expensive acquisition to get access to Senegal.

I note that using CNE's reserve/resource that they have booked that if FAR used the same criteria then their 2P/2C increases from 60M/bbl to 71M/bbl. Not sure why WPL, FAR & CNE come up with differing methodology when calculating their respective 2P/2C. The Scots are using ~500M/bbl for the calculation but that figure even using 40% holding does not add up to the 208M/bbl booked.