The SAMO dilemma, page-7

"FAR share price will be materially higher if SAMO is commercial so a a minor cap raise could be done to fund the next two years. Good problem to have IMO."


There is no minor spending over the next two years if SAMO comes in, unless you expect them to flog WI off on the cheap without even appraising it first..a very unlikely event....they will be back in Gambia later next year most likely and we will be paying 40-50% of the well costs...selling out cheaply has not been FAR's modus operandi, raising money required has been...

FAR issued a billion shares in the last raise for a little over $80m, cost us a lot in dilution because of the oil slump but bought us a lot of long term value as the oil price improved and resources were added ...there is no perfect solution.

So if they are lucky enough to be in a position to raise twice that amount for half the amount of shares issued, you can almost guarantee they will take the opportunity...be unwise not to , its always easier to deal from a position of strength and stock up the larder in more favourable terms IMO...

Mind you if they issued 10% more capital on what they have now , which would be 546 M shares, it could be considered minor at a good shareprice ,given the potential value add...

Cheers Whisky