FAR - FAR Limited

[BESBS Player]

Re: FAR Limited

Finished buying in today. I'm seeing this as a potential multi-bagger.
At this price, I can't see too much downside.

* 3D seismic happening: good results will give this company a significant boost
* AP should be drilling Alhamdulillah soon. This target overlaps FAR's Senegal block to some degree (around 25% I believe). The drill is planned for Q4 2012. Once a rig and drill date are confirmed, this should give FAR SP a no-cost 'positive externality' ride in a northward direction. The target is big and keeps things interesting until FAR's own African drilling.
* African drilling to come, hopefully within 12 months.
* Given what we have seen with PCL, this one could be a real sleeper.
* Historically, the FAR SP has been 200%+ when drilling larger targets in the past than current SP.
* Plenty of leverege at these prices.

I have purchased with a 12 month (50% CGT discount in mind). I'll be happy with anything over 200% profit but time will tell.

As always, DYOR.

Bought in at 3.9c ave.

Slowly starting to build as expected as we head toward neighbour drilling to the FAR Senegal block...
Happy to date.

 

[mr. jeff]

Re: FAR Limited

Slowly starting to build as expected as we head toward neighbour drilling to the FAR Senegal block...
Happy to date.

Will it hold and continue?! With the upcoming action, my guess it will with these oil prices. With a stutter from overseas perhaps it will revisit that 5c level then head back up (7c level the next to look for) ? PCL looks to be the lower risk option, but both looking attractive with great upside. Watching only, looking for an entry.

 

[BESBS Player]

Hi Jeff,

You might well be right. In the case of FAR, I'm in for the longer ride until they drill in Africa. I'll have another look when I have been in 12 months (CGT 50% discount) and closer to drill action.


Holding at 3.9c ave

 

[BESBS Player]

PCL in trading halt. Looks like all the trader bets have come onto FAR today.
Monday (assuming that this is when PCL make their announcement) should be interesting. While a success for PCL would have a nice positive impact for FAR, remember that the odds are always stacked against it.

Holding at 3.9c

 

[BESBS Player]

Well, well, well.

Early days in the drill but we have elevated gas levels, enough to call a Trading Halt. Re-Open today was most pleasing. Now things should get interesting...will the traders wait for further results or will some start to take a punt? Will a few take a profit?

Looking forward to seeing how it pans out in this market but given today's buying, it could run a bit further tomorrow. Time will tell...

Holding at 3.9c ave :

 

[BESBS Player]

Well, well, well.

Looking forward to seeing how it pans out in this market but given today's buying, it could run a bit further tomorrow. Time will tell...

Up another .004c today to .053c. Would love some more gas (or oil if it must be!) in the deeper targets for PCL.

Holding FAR @ .039c ave :

 

[BESBS Player]

Oh well...no gas at the bottom.

Not surprised that SP went back to pre-spud run on this news.

In the longer term, the fact that there was gas in the shallow levels (enough to almost double the PCL SP in a day) suggests that there will be enough hope in surrounding prospects to support a pre-spud run for FAR when they finally get around to drilling in 2013.

Add to this, Ap should be drilling at the end of the year and this latest SP crash is a BOBN (Buy On Bad News) opportunity. Be aware, the SP might still drop to .036-7c but we should be within 10% of the potential platform.

Remember this is just my opinion but I bought a few extra today and hope to add in the next few days if we stay sub-4c.

WARNING: DYOR as I am simply a mug-speculator calling it as I see it (and it might be totally wrong!)

Holding FAR @ .039c ave

 

[urgalzmine]

Hi Besbs ,

I am surprised you didn't sell out .05 ? Huge gain and the chances PCL found something substantial was so remote. I am still puzzled why FAR increased so high

 

[BESBS Player]

Hi Urgalzmine,

Good question. Usually I would have but I have my mind set on FAR drilling its own well and snagging a 200%+ return (with a possibility of a 50 CGT free discount). As this was really an externality impact from PCL, I guess I was happy to watch from the side line. While I was up 25% (at the 5c SP), it was a long way from my target here. In the case of FAR, I'm happy to see through my plan unless we suddenly get a 50%+ SP rise when AP drill around the end of the year. At that level, depending upon what else is around, I might move out. That said, FAR have a history of mid-teen SP when drilling decent targets. Given what happened with PCL and a hint of gas, I'll hold for the while.

Cheers,
BESBS

 

[BESBS Player]

Just treading water at this time. Should be interesting to see how the market receives news of AP drilling Alhamdulillah when finally announced. This target overlaps FAR's Senegal block to some degree (around 25% I believe). The drill is planned for Q4 2012 so once a rig and drill date are confirmed, this should give FAR SP a no-cost 'positive externality' ride in a northward direction. The target is big and keeps things interesting until FAR's own African drilling. Given the way PCL hasn't totally collapsed, I suspect there might be a nice 20-30% SP run from these levels (at 3.4c). Watching with interest.

Been good buying lately.

Holding at 3.7c ave

 

[mr. jeff]

Just treading water at this time. Should be interesting to see how the market receives news of AP drilling Alhamdulillah when finally announced. This target overlaps FAR's Senegal block to some degree (around 25% I believe). The drill is planned for Q4 2012 so once a rig and drill date are confirmed, this should give FAR SP a no-cost 'positive externality' ride in a northward direction. The target is big and keeps things interesting until FAR's own African drilling. Given the way PCL hasn't totally collapsed, I suspect there might be a nice 20-30% SP run from these levels (at 3.4c). Watching with interest.

Been good buying lately.

Holding at 3.7c ave

BESBS thanks for the faithful updates. I have entered in a small way to keep an eye on things. It seems that there may be a low risk entry on FAR at the moment. A lift from local work may be possible as you say.



The reason I entered was that today was particularly weak and I thought getting in on that would be a good opportunity when it is so near to its mid term support level with the volume all but dried up. Their acreage remains promising and although PCL did not succeed on their first hole, it was not strictly a duster either. I think there is more to this story yet and hope to see FAR share some of the fun soon.

Watching.

 

[BESBS Player]

This is where the patient make big money. Accumulate while the SP is down around annual (and historical) low levels, be patient to wait 12 months if it takes that long to get African drilling lined up, then sell with a multi-bagger accompanied by a 50% CGT discount. This was the tale of PCL. I see big similarities here.

At around 3c, history would tell you that good money can be made here. AP should be drilling Alhamdulillah soon (I believe it commences in roughly 3 weeks) and success there would have knock-on impacts for FAR given the location of the drill.

I'm accumulating at these prices.

Holding FAR ar 3.4c

 

[BESBS Player]

Interesting to see SP activity today. Could be that someone knows something (or thinks that they do!) regarding L6. More likely an overdue (IMHO) run leading up/into to AP's current wells. Nothing like nearology and positive externalities to get the punters excited!
Either way, I'm happy and hoping that the run will continue into Q1 2013


Happily Holding FAR at 3.4c ave

 

[BESBS Player]

Decided to sell out of FAR. Once FAR announced that the probable reason for SP spike was the AP drill, I started to sell. If AP drill is a success, FAR benefit from nearology. If AP drill is a dud, FAR might cop some negative extermality impact.
With no update on FAR drilling (and the ASX release did give management a chance to make a positive comment in this regard), I'm happy to take profits and move on. As a BESBS (Buy Early Sell Before Spud) player, the AP drill complicates things given we have no set dates for FAR's own drilling. As AP are now underway (and information is not easy to get), I'll sell as it becomes a pseudo-spud for FAR, as th drill will have some impact on FAR. Time to get set elsewhere...
When FAR announce a drill date, then I'll re-consider returning.

All the best for long-term holders. Like PCL, when drilling finally does occur, I'm sure that the SP will rise significantly (and I'll probably be back).

Bought at 3.4c ave
Sold at 4c ave
Profit: 17.5%

 

[mysteriousbrad]

Alot of trades today... something in the works?

 

[bigdog]

FAR - FAR LIMITED

FAR is the largest holder of exploration licences of any ASX listed oil and gas entity in Africa and has first mover advantage.

FAR Limited (FAR) is an independent Australian Securities Exchange listed (ASX: FAR) oil and gas explorer with high impact assets in West and East Africa. The Company has a robust balance sheet to progress its assets, an experienced Board, and management with strong relationships in Africa. FAR is dedicated to being a leading African focussed exploration company.

FAR has a deep and diversified pipeline of projects that vary from entry level positions in blocks with strong farm-out potential to high impact drill ready projects. The Company is well funded to advance significant exploration programs and could potentially drill five wells in the next 18 months.

In West Africa, FAR is the broadest holder of licences of any ASX listed entity with drill ready prospects in Senegal, Guinea Bissau and the AGC Profond. FAR’s recent acquisition of Flow Energy has strengthened its African focus, gaining entry to the fast emerging oil and gas province of Kenya, East Africa. FAR also holds acreage surrounded by proven petroleum systems in Western Australia.

Incorporated in Western Australia in 1984 as First Australian Resources NL, the Company became a listed public entity in 1985. In recognition of its shift from its exploration roots in Australasia and the Gulf of Mexico, the Company changed its name to FAR Limited in 2010. In November 2011, FAR finalised its takeover of Flow Energy Limited.

Market Cap: 102,493,716
Issued Shares: 2,499,846,742

52-wk High 0.0530
52-wk Low 0.0240

 

[bigdog]

AR Limited (FAR) is an independent Australian Securities Exchange listed (ASX: FAR) oil and gas explorer with high impact assets in West and East Africa. The Company has a robust balance sheet to progress its assets, an experienced Board, and management with strong relationships in Africa. FAR is dedicated to being a leading African focussed exploration company.

http://www.far.com.au/wp-content/uploads/2013/10/20131016-StockAnalysis-Special-Edition-FAR.pdf
Originally Published
16 October 2013

FAR Cranks Up For Drilling in 2014

Recommendation:
FAR is approaching a period of drilling activity during 2014 that offers significant share price upside on any hint of success. The stock is well capitalised and funded, offering a speculative buy as it continues in a short downtrend to test likely support at 3.4 cents and then has a target of 8 cents during H1 2014, once resistance at 5.5 cents is overcome FAR is well capitalised, with cash of about $25 million and a further US$5 million due from Cairn Energy once government approvals are in from Senegal. The stock is well positioned to emulate the successes of Hardman Resources in the early 2000’s.

Final costing for two wells in waters offshore Senegal is in preparation. FAR is fully carried to AFE costing for both wells by funding of up to about US$190 million from ConocoPhillips and Cairn Energy, with a retained net revenue interest of 15%. This funding alone represents a look through value of about 1.3 cps for FAR.

The Senegal coast is still very much a frontier province with no commercial oil found so far. However the presence of world class, excellent source rocks and mid Cretaceous reservoirs (89 million years old) that have proven to be prolific from offshore Mauritania in the north to Ghana in the south, support a strong case for exploration success.

The first target is expected to be a deep water turbidite (clastics) play in a buried underwater canyon where up to 900 mmbbls of oil is in prospect, but StockAnalysis assesses success with 304 mmbbls of oil. Water depth is around 1,500 metres and the target is about 1,500 metres below mud line. The well will test known sand formations that are seen to outcrop onshore. Sands are known to be prolific and could potentially provide large reservoir volumes with expectations of good reservoir quality characteristics, overlain by sealing mudstone. The target has high amplitude seismic anomalism typical of hydrocarbons in sediments.

The second well, estimated to cost about US$80 million to drill, will target the Lupalupa prospect also in deep water, but slightly shallower at around 900 metres. StockAnalysis evaluates a 154 mmbbl target but around 200 mmbbls is possible. This prospect occurs in a tilted fault block where carbonates are the main targeted reservoir, with seismic data indicating porosity is present, but effective seal is a risk.

StockAnalysis assesses a net present value for success at both Senegal wells at just over $1 billion for FAR, which compares favourably with its current market capitalisation of $93 million. Discovery value per share takes into consideration the impact of dilution resulting from additional equity required to assess and appraise any hydrocarbons.

Any success offshore Senegal would high grade several additional prospects for drilling. A programme of appraisal drilling would follow on, which might involve further low risk farm out funding by FAR or additional equity issues at a much more favourable share price.

In Kenya, FAR is seeking farm in support to test the Kifaru carbonate prospect in ~300 metres of water, close to the Kenyan coast. In this region, FAR identifies three possible source rocks with the deepest having produced gas in the Mbawa discovery. Nearer the coast, the chances of finding oil from less mature source rocks are thought to be higher.

The Kifaru prospect has a primary carbonate target at about 1,800 metres but a deeper sedimentary target at about 3,100 metres which could be tested in the event of encouragement from shallower sediments while drilling.
The Kenyan prosects are assessed with a 19% chance of finding hydrocarbons and then a 50/50 chance of either gas or oil.

Underlying value for FAR is limited as the company relies on its risked exploration upside.

StockAnalysis sees an undiluted risked value of about 6 cents per share for Senegal and 1.7 cps for the Kenyan acreage with other projects adding a further 8.6 cents to lift total target risked value to 17.5 cents.

 

[bigdog]

http://www.proactiveinvestors.com.a...fshore-senegal-oil-well-in-1q-2014-49603.html

FAR Limited, Cairn Energy to spud first offshore Senegal oil well in 1Q 2014
Tuesday, October 29, 2013 by Proactive Investors

FAR Limited (ASX: FAR) and Cairn Energy (LON:CNE) expect to spud in the middle of the first quarter of 2014 the first of their two wells offshore Senegal that target 1.1 billion barrels of prospective oil resources.

Notably, Cairn is funding FAR’s costs for the first of the two wells an investment cap of US$80 million while ConocoPhillips (NYSE: COP) is farming into a 10% stake in the blocks by providing FAR with a full carry on the second well.

After completion of the two farm-in deals with ConocoPhillips and Cairn, FAR will have secured full funding for its share of two exploration wells totalling US$190 million and net surplus cash of about US$10 million.

FAR retains a 15% working interest in the permits. ConocoPhillips and Cairn will hold 35% and 40% respectively.

Petrosen, the Senegal National oil company, has a 10% carried interest through the exploration phase.

The company has identified a number of play types including the “fan” and “shelf” plays and has mapped 11 potentially drillable prospects as well as numerous other leads on its three contiguous blocks - Rufisque, Sangomar and Sangomar Deep, which cover 7,490 square kilometres.

3822

 

[bigdog]

ASX ANN today
01 October - 31 December 2013 Q4 Report
http://www.asx.com.au/asxpdf/20140131/pdf/42mfvxq25vvlp0.pdf

Highlights

• ConocoPhillips and Cairn Energy farm-ins to FAR’s Senegal exploration permits concluded
• Full funding secured for two offshore Senegal exploration wells, an investment of approximately US$200 million (100% basis, FAR estimate)
• Two Senegal wells to test combined prospective resources of approximately 1.5* billion barrels of oil, 225* million net to FAR (Reference ASX release 27 February 2013)
• Rig mobilised, first Senegal well to test a deep water fan play expected to spud in Q1 2014
• Planning for Guinea-Bissau exploration well scheduled to spud late 2014
• Strong cash position of AU$23.5 million with no debt and further US$5million to be received from Cairn Energy Q1 2014

4582

 

[bigdog]

http://www.proactiveinvestors.com.a...hree-offshore-guinea-bissau-blocks-52544.html

FAR Limited identifies oil and gas resources in three offshore Guinea-Bissau blocks
Wednesday, February 05, 2014 by Proactive Investors

FAR Limited (ASX: FAR) has identified hydrocarbon resources for its three offshore oil and gas blocks in Guinea-Bissau that highlights their prospectivity.

The existing East Sinapa oil discovery hosts Best Estimate Contingent Resource of 13.4 million barrels of oil along with Prospective Resources of 7.5 million barrels.

The West Sinapa prospect that is expected to be drilled by the joint venture in late 2014 is estimated to contain Prospective Resources of 64.7 million.

Total combined Prospective Resources for the three blocks are estimated to contain 954 million barrels of oil. An immediate follow up well is planned in 2014 in the event of success on the West Sinapa well.

FAR has a 15% interest in Sinapa Block 2 and Esperanca Blocks 4A/5A. Petroguin, the National Oil Company, has a 30% participating interest which is non-paying during the exploration phase.

Svenska Petroleum Exploration holds the remaining participating interest and is operator of the permits.