TIME FOR SH RECAP???, page-5

I think with development cost savings post covid of at least 15% FAR would require around US $350M (AUD $460M). That leaves no money for anything else. Noting that FAR back in February 2020 had US $200M locked in but the deal collapsed as the US $200M was subject to the third party coughing up US $100M and that party withdrew the finance then FAR would need to raise US $150M through a capital raising. A 10B share placement at 2c raises this money.

The problem FAR have is that the current management team have zero credibility so for a capital raising to be successful the major shareholders would need to grow a set of balls, sack the current management team and put a new reputable team in place. The above option has potential due to the U turn in the oil price but the top shareholders inaction tells otherwise.

FAR has stated that SNE has an NPV at production of US $640M (AUD $832M). On a 20B share capital base that equates to 4.1c in late 2023. So a capital raising at 2c, potentially doubles any new investors money in 2 to 3 years. WPL through it's preemptive rights on FAR's sale of Sangomar are looking at tripling their investment over the same period, assuming we do not get another Black Swan event..