Tweet - FAR 12 Month Value Drivers, page-87

Agree, Graham, but I reckon your first sentence should have been shortened by one word ... ATM. It just won't happen, full stop, in my view. Woodside simply won't be prepared to pay FAR's internal valuation, which will be way, way, way above today's share price.

Our Directors won't be stupid: At some point an offer might well emerge that adequately balances current value versus the time and cost of going all the way to production, but it would need to be a damn good one and include plenty of blue sky. Samo aside, FAR is sitting on under- or un-appraised discoveries (FAN, SNE North) and prospects (Soloo, GB, A2, A5) mapped with the aid of the technical knowledge gained from 11 successful wells. That won't be sold for no value, IMO.

If Samo succeeds, I fully expect FAR to attract major oil suitors. I just don't see Woodside cutting it against that sort of competition.

And of course there is the annoyance of PE hovering over that scenario.

Interesting few months ahead.

OOO