Why Far is Undervalued., page-7

At last a comprehensive and realistic look at FAR's potential value going forward, that was a fantastic effort Mandurah and thank you for the effort required and the thought put into it..

If I was to distill the observations and try to come to any conclusion it would be that which ever way you look at it FAR is undervalued on future potential and it's only by the amount that's uncertain....which is why I and others accumulate..by any measure SNE is a good Elephant...

Probably the thing that excites me the most about SNE is the break even price of the oil , the next CNE update will like show that figure at around $US 30 Barrel as you suggested and that gives a huge amount of flexibility and is why I'm a great fan of not only going to production but with the full 13.7%.

I don't think FAR will have much trouble getting funding but will almost certainly involve raising more cash but there are a couple of things that could change that, the results of PE and / or A2..

Both of those will be resolved by FID and as you say that is when decisions have to be made made and it's also likely when consolidation happens..

For me the beauty of taking everthing through to production is you not only have an asset to sell but an income with it, making it a going concern and Producing reserves PDP,s should command $US18-20 Barrel IMO for a long life project , the price of oil at the time will dictate and that figure could easily be more in a high oil price environment .

That of course is if we were selling, the other option is to continue on as a producer with a large longterm income paying a small dividend and exploring as well.

All in all not a bad space to be in for a small Oiler with no debt, plenty of cash in hand and strong backers..we can't be forced to do anything..but it won't happen overnight, you can't pretend a 6-7 year project is not what it is but we are almost 3 years into it now.

For me selling at the beginning of production has the most appeal...

Anyway it's nice to be discussing the Company in a rational non hyped manner and thanks to the ignore feature avoid the resulting pissing contests ...

Cheers Whisky