if we are on a winner don't sell!!

If by chance TAP reports a success at Banjo tomorrow my advice to holders of FAR is to watch the stock very closely. For FAR a success at Banjo would be a company maker given its interest (33.3%) and the size of the target. The shares might double on the announcement of good news, even in this awful market, but the real lift in FAR prices would be a bit down the track as the realisation of the importance of the Banjo lease sinks in. It is targeting oil (50-60 mmbls recoverable) in relatively shallow water andnear production facilities.

It is worth remembering ARQ rose only slightly on the initial Hovea discovery and took off after the market took on board the significance of the find. If you have held through the drilling of the well you have earned a 3-4 bagger or better. My strategy will be to hold on any good news. If you need to cover yourself then you could sell enough shares to cover your original investment and let the rest ride.

If Banjo is a duster then we are looking at 3 cents or worse. No point in my opinion selling at that level particularly given that FAR has a growing revenue stream from the US, has enough cash for the rest of the year, and will proably get some of the Banjo drilling costs back as I was told today that the well has come in under budget. It may not get back to 5 cents by the end of April but it is a far better stock than three or four cents would represent. Just my thoughts. Cheers JBC