I think that there is a definate need for the CR. We have 10m in...

I think that there is a definate need for the CR.

We have 10m in the bank with another 3m being paid from Chin a shortly.With another 6m from the CR brings FAR to 19-20m cash + another 3m being owed sometime from China.

However, looking at the cost end of things, 4.8m for Kora, 3.2m for sesmic in G.B. (15m * 0.2143%), assume we want to drill a few holes in G.B. for say 15m per hole end of 2011 will cost us another 6-7m or so, as well as the 5m for Senegal which we may not get back if Kora fails.

Total estimated expenditure of 19-20m till mid 2012.

Although, I think the current accouncement is a great deal, FAR will have a cash problem (unless they get some money from a Senegal farmout).

I think if Kora comes if we are home and hosed as plenty more high percentage prospects on the AGC profound as well as Senegal, if Kora fails it will make the whole think difficult.

Who much do I think KORA is worth, obviously a lot given the knock on effect of a positive or negative result as explained above.

However, in plain money terms 3-4dollars a Barrel (keeping in mind FAR sold their China interests for only 8m). That gives a 155-180m inground value of FAR 10% of KORA , which is not that much.

Which means the SP should rise nicely leading up to and during the drilling put will tank considerable if nothing comes of KORA (best to sell a few before the well), unless one believes that something great will come of G.B.

I will even be so daring to predict a dollar value of the SP prespud. Say a sucess at KORA and a few further prospects is worth 50cps to FAR + huge TO potential, with a 50% chance of sucess put with the price falling to 2-3cps assuming a duster, prespud price of 20cps.