Why Far is Undervalued., page-10

Hi Mandurah

Weeties are a better option than Laphraoig in digesting your post. I echo the thanks and congratulations of others: A great post reminiscent of 'the good old days' when giants like Aqua, Phillip and even Farjoy strode these pages.

As you illustrate, by any measure FAR is grossly undervalued, but not surprising in this continuing oil market malaise. When might that 'end'? There seems to be an arm wrestle between the bulls and bears at present, but with oil stocks still high and new shale producers coming on weekly the bears remain ascendant.

The exercise you undertook will have been repeated in just about every large oil company on the planet, and with every well drilled FAR's 'undervalue' increases. FAR itself will have its own valuation constantly ticking over and verified by RISC. I'm not sure how these things work, but ideally FAR would keep that RISC valuation in its back pocket as a negotiating tool. At some point a deal will be done, whether a part sale of SNE, a full sale or, less likely IMO, a sale of the Company. The sale price will leave plenty on the table for the buyer - it must or a deal won't be struck - but will give plenty to shareholders too.

Nagging away is puzzlement as to why the market currently can't - or won't - recognise the inevitability you've so eloquently outlined. Where does it see risk that we can't? But then I suppose with the price where it is, the market is in no hurry. It seems to think it can dawdle along like the hare to our tortoise. But we all know who won that race, don't we!

OOO