So much news expected but still pending!, page-141

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rollacoaster

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12/08/18

17:27

Post #: 34884795
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Originally posted by Oddoneout ↑

Hi Cujo

Our discussion is probably - definitely? - pointless, because, as you say, the drill will tell all. I did go back and read the Annual Report. Here are the relevant quotes:

"As the key oil reservoirs for the Samo Prospect have been drilled with nine wells across the border in Senegal in the discovery and evaluation of the SNE Field, FAR has also forecast the Samo Prospect to have a 50% chance of success.

"The Samo prospect has two target intervals and is on trend and shares many similarities with the giant SNE oil field. As such it is very highly rated with an estimated chance of success (CoS) in one or both targets, endorsed by RISC, of 55%. It is rare to have an exploration prospect with such a high CoS but this reflects the (i) Before farm-out to PETRONAS in February 2018 adjacent discovery at SNE and the confidence FAR has developed in exploring in the play fairway which is yet to experience a dry well."

I'm not sure this is definitive. On the one hand, it talks of 'adjacent discovery' and 'shares many similarites' - which suggests a separate field; on the other hand it says 'the key oil reservoirs (in Samo) have been drilled with nine wells', suggesting it might be connected.

By Christmas we should know.

OOO

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I give Petronas's view of the Samo well a very high weight as they are the one's dipping in to their pockets and as such probably should be taken more note of than FAR & RISC.

Not only are Petronas telling us that the well is worthwhile drilling, they are also telling us that it is such a prospective well that it is worth paying twice the cost of a normal well to find out what lays beneath, given the effective free carry of FAR's cost 40%.

FAR Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
15 Upvote

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