FAR - FAR Limited

[bigdog]

http://far.live.irmau.com/irm/Company/ShowPage.aspx/PDFs/1843-29330502/InvestorPresentation

FAR’s African story is unfolding
Investor presentation
February 2014

Investment highlights
Highly prospective world class acreage, blue-chip partners, free-carry wells

• Board with significant E&P experience
• Diversified asset base with 9 licences in 3 countries : West and East Africa
• 7+ billion barrel prospect inventory
• 3 farm out deals concluded with global players – Cairn Energy, ConocoPhillips, Milio International
• 5 wells to be drilled in next 18 months – two commence March 2014
• $24m in cash + $5m in Q1
• Potential to build significant shareholder value

FAR $0.044 $+0.002 (+4.76%)
Thu 06 Feb 2014 2:31 PM (Sydney time
Volume 12,895,532

4791

 

[bigdog]

SP doing well today

FAR $0.050 $+0.008 +19.05% volume 28,946,935 @ Tue 11 Feb 2014 10:29 AM

No doubt the day traders have jumped on this today and question is how long will it last!

Article today
http://resourcesrisingstars.com.au/

Why top analysts are gushing about oil explorer FAR Limited

This junior is about to drill two wells which could send its share price soaring by up to 800%, say brokers

Shares in FAR Ltd, the junior ASX-listed oil explorer, could jump from their current level of 4.5c to as much as 35c thanks to two potentially lucrative wells the company is about to drill, according to two prominent London broking firms.

Their forecasts are based on the immense potential of the wells which will start being drilled next month in the oil exploration hot spot of Senegal.

FAR has close to $30 million cash in the bank. But it won’t need to spend any of this to take full advantage of these exploration opportunities because all the costs of the wells are being paid by global petroleum giants ConocoPhillips and Cairn Energy.

FAR also has farm-out agreements covering wells set to be drilled early next year in Kenya.

Broker GMP Securities has valued the blue sky in FAR upwards of 35c, describing the company in its latest research note as “the best-funded small-cap explorer in our coverage universe ahead of two fully-carried, high-impact exploration wells”.

“Both relative to peers and in an absolute sense, FAR is in a very strong position ahead of its high-impact exploration drilling in Senegal,” said Tao Ly, GMP’s Head of Oil & Gas Research (Europe).

“The two wells offer blue-sky upside of 35c a share.”

GMP’s view is supported by another London broker, RFC Ambrian, which said it believes FAR shares are worth more than double their current price.

Jonathon Williams, RFC Ambrian oil analyst and commentator, said FAR is currently worth 9.8 cents a share and potentially a lot more if the two imminent offshore oil exploration wells come in.

Last year FAR farmed out interests in two offshore exploration permits in Senegal in West Africa.

ConocoPhillips of the US and Cairn Energy of the UK bought into the permits, leaving FAR with more than $30 million in cash in the bank and a free-carried interest through the two wells up to a maximum cost of $190 million, leaving Far with a 15 per cent working interest in the permits.

In his latest research note, Jon Williams said: “The first Senegalese well will test a 900 million barrel (MMbbl) prospect. The second well will test a ~400MMbbl prospect.

“The first of these two Senegalese wells should spud in the next month. We reiterate our Speculative Buy rating on the stock and fair value estimate of A ¢9.8/share.”

In a separate commentary issued to RFC Ambrian clients, Mr Williams went further. “Our analyst, Stuart Amor, met with FAR’s managing director Cath Norman recently and he remains very enthusiastic about its projects. In fact, he tells me that it is one of the most exciting stories out there right now, so take note.

But the FAR story is not restricted to Senegal and Kenya. It also holds exploration acreage in Guinea Bissau to the south of Senegal.

RFC Ambrian likes what it sees in Guinea Bissau.

Jon Williams noted: “FAR is also planning an exploration well for late 2014 in Guinea-Bissau, which I find interesting.”


I hold FAR

This could place me ahead in the February ASF share tipping competition!

5012

 

[bigdog]

FAR did very well today

FAR $0.059 $+0.017 +40.48%
FAR LTD FPO (ORDINARY FULLY PAID)
Tue 11 Feb 2014 4:31 PM (Sydney time)
Incredible volume: 182,254,939 shares

Speeding ticket was issued today

Looks like many day traders in and out; what will happen tomorrow?

This is another report in the Australian today.

http://www.theaustralian.com.au/bus...til-iron-settles/story-fnciil7d-1226822947898

FAR

INVESTORS in African oil and gas exploration specialist FAR Ltd (FAR) are best advised to hold on to their seats as they are in for one hell of a ride in the next 12-18 months.

The Melbourne-based group, headed by Cathy Norman of volley ball-spiking fame, is set to be involved in five high-impact exploration wells in Senegal and Kenya by the end of the first quarter of next year, with the cost of at least three of the wells to be picked up by big-brother partners that FAR has introduced into the frontier hunts.

This is what oil and gas exploration by juniors is all about. It is about being fleet of foot, moving early into new and unfolding oil and gas plays, then following up with enough desktop studies and the occasional bit of seismic survey work to entice a big brother with deep pockets to come in and drill high-cost wells on big targets, leaving the junior with a free-carried interest on a shot for the big time.

That is exactly the position that FAR, drawing on Norman’s 20 years of industry experience in the dark continent, has achieved, meaning that this year and the early part of next year are set to be as exciting as it gets for a junior oil and gas company.

Mind you, FAR is not all that small. Its shares were last trading at 4.3c but it has 2.5 billion bits of paper out there, giving it a market capitalisation of $107m, and an enterprise value of $77m after its cash holding of about $30m is taken into account.

Still, success in any one of the upcoming wells - particularly either one or both of the first two offshore wells off Senegal - would see FAR’s market cap become a multiple of what it is today.

In a research note by GMP Securities circulating in London last week, FAR was described as the “best funded small cap explorer in our coverage universe ahead of two fully carried, high-impact exploration wells (in Senegal)”.

“FAR, partnered with ConocoPhillips and Cairn Energy, has exposure to two (free) carried exploration wells offshore Senegal targeting 1.5 billion barrels of oil equivalent of gross resources with further follow up potential,” GMP said.

“The two wells offer blue sky upside of 35c a share or around 9 times FAR’s current share price. The keenly awaited first well will target the deep water slope fan play, targeting mean prospective resources of 900m barrels.”

It is not a long wait either. The drilling rig is expected to move from a Cairn-operated exploration program off Morocco to the site of the first Senegal wells in March.

FAR has held on to 15 per cent of the action. Needless to say, its leverage to success is extreme, while damage from failure will be mitigated by what could come from wells to be drilled later onshore/offshore Kenya, and offshore Guinea-Bissau.

I hold FAR

5084

 

[BullsihBear]

This thread is hilarious, I find it fun some of you guys are ridding this P&D and it takes me back to the 90s.

Solid companies do not and never will pay for stock promotions. This companies product is mainly their own stock, sure you can make money on it but at least know the game you are in.

Still learning the Aussie market but thanks for the laugh by trying to pump it and make it seem legitimate, you're awesome.

 

[bigdog]

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01502272

19 March 2014
Shareholder update

• Drilling offshore Senegal to commence in April
• Positive news from Sunbird - 1 well offshore Kenya
• Strong cash position of $28.4M

Senegal update
Drilling of two potentially high impact offshore oil exploration wells in FAR Limited’s (“FAR”) Senegal acreage in west Africa will begin in April after receiving advice from joint venture partner Cairn Energy PLC (“Cairn”) of the UK.

Cairn yesterday advised that, “The two well exploration programme offshore Senegal (Cairn 40% WI, Operator) will start in April after drilling operations are completed in Morocco.

In a release to the London Stock Exchange Cairn provided an update on the schedule for the Cajun Express drilling rig which is completing Cairn’s Moroccan exploration well and which will be moving to Senegal to drill the two FAR wells.

The first exploration well will be located on the North Fan prospect in 1,500m water depth. This well will be immediately followed by a second exploration well targeting a Shelf Edge Prospect in 1,100m of water. These will be the first deep water (>1,000m) wells drilled in Senegal and only the second and third deep water wells along the central Atlantic margin of West Africa.

The two exploration wells will test combined prospective resources of approximately 1.5 billion barrels of unrisked prospective resources* (Reference: FAR ASX release of 27/2/2013) and FAR retains a 15% working interest in the blocks.

FAR has successfully secured funding of approximately US$190 million (100% basis, FAR estimate) for these two exploration wells in farm out deals completed with Cairn and ConocoPhillips.

“It has been a terrific year for FAR in that we have now completed three farm-out deals and as a consequence we are funded through two high impact exploration wells in Senegal spudding in the next month as well as being fully funded through a seismic and drilling program in Kenya Block L6 due to be commencing in Q2. The recent announcement by Pancontinental updating the status of the Sunbird-1 well is highly encouraging for offshore Kenya, especially the reef play that extends through both Blocks L6 and L9 in which FAR has an interest.”

Cath Norman
Managing Director

6378

 

[bigdog]

The share price has tumbled in April 2014!! Share price has not been moved following today's announcement at FAR $0.048 $0.000 (0.00%)

Announcement today

FAR 17/04/2014 9:47:19 AM Drilling commences offshore Senegal

http://far.live.irmau.com/irm/Compa...853-89401159/DrillingcommencesoffshoreSenegal

Drilling commences offshore Senegal

Drilling has commenced on the offshore exploration well, FAN-1, offshore Senegal in which FAR Ltd (ASX:FAR) holds a 15% interest (Cairn Energy PLC (“Cairn”) 40%, ConocoPhillips 35%, Petrosen 10%).

The well will test a stacked fan structure with the potential to contain approximately 900 million barrels of oil (mmbbls)* with approximately 135mmbbls net to FAR*. (Reference: FAR ASX release of 27/2/2013).

The well will be drilled using the fifth generation rig, the Cajun Express, which arrived on site Saturday 12th April.

FAN-1 is the first exploration well in a two well programme, offshore Senegal with the wells to be drilled back to back. The first well will be located on the North Fan prospect in 1,500m water depth. This well will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water (See figure 1).
These will be the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years. The two exploration wells will test combined prospective resources of approximately 1.5 billion barrels of unrisked prospective resources* (225 mmbbls net to FAR*) and FAR retains a 15% working interest in the blocks. (Reference: FAR ASX release of 27/2/2013).

In accordance with the terms of farm out deals completed with Capricorn Senegal Limited (a 100% subsidiary of Cairn) and ConocoPhillips, FAR has successfully secured its share of funding for these two exploration wells. Based on current well cost estimates, the carry funding and cash payments that FAR has or will receive under the farm out agreements are expected to be in excess of FAR’s share of the combined well costs for the two wells.

“Our shareholders and the FAR team have been eagerly awaiting the spud of this first Senegalese well and I am delighted to make this announcement. We have high hopes for these two wells which have the potential to be company makers for FAR. The next year is going to be very exciting for our company with five potentially high-impact wells to be drilled in our West and East African exploration permits.”

“Of course exploration has its risks but we are confident that FAR can maximise the value from these two exploration wells. Success in either of these wells opens the door to a large play fairway of follow on drill targets which are very significant for FAR.”

Cath Norman Managing Director

The FAN-1 well is a pure exploration well and, even if successful, will not be completed as a commercial production well. In the event of a success, the Joint Venture may decide to conduct further drilling and evaluation activities.

As FAR is not the operator of the Senegal wells the information flow it receives is dependent on reports provided by the operator Capricorn Senegal Limited. Operations on the FAN-1 well are expected to last approximately two months, and FAR will release reports in collaboration with the Joint Venture partners.

6922

 

[bigdog]

15 May 2014
Shareholder update : Senegal drilling

http://far.live.irmau.com/irm/Compa...866-38042189/ShareholderupdateSenegaldrilling

Cairn Energy PLC, the operator of FAR’s two well drilling campaign offshore Senegal has released the following statement to the media in conjunction with their annual reporting to shareholders.

Cairn’s planned two well exploration programme offshore Senegal began in April using the ‘Cajun Express,’ a 5th generation semi - submersible drilling unit.

Operations continue on the FAN-1 well, located on the North Fan Prospect in 1,427m water depth in the Sangomar Deep block approximately 100km offshore Senegal. This well is targeting multiple stacked deepwater fans interpreted as potentially thick, high quality clastic reservoirs.

In light of required rig maintenance and to optimise the rig schedule, the top hole section has also been drilled on the second exploration well SNE-1, located on the Shelf Edge Prospect in 1,100m of water. The rig has returned to FAN-1 to continue drilling the deeper sections.

After drilling operations on FAN-1 are complete the rig will then return to the SNE-1 location. This dual objective prospect targets stacked Cretaceous clastics and a deeper target of karstified and fractured Lower Cretaceous shelf carbonates. There are several other shelf edge anomalies that provide follow-up potential in the success case.

Cairn (Operator) has a 40% WI in the three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore, Rufisque Offshore) and is working with JV partners: ConocoPhillips 35% WI; FAR Ltd 15% WI and Petrosen, the Senegal National Oil Company, retaining a 10% WI in the exploration phase. In the event of a commercial success, ConocoPhillips will have the option to operate the future development of the resource.

“FAR is in an enviable position as we continue our drilling program in Senegal. The company has two strong partners, retains a high equity in any discovery made and is well funded to meet its commitments in these wells.

Success in either of these two wells offshore Senegal will be significant and open the door to a large inventory of follow on drill targets creating sizeable upside for the company and its partners. It is a fantastic milestone for the company and one that we aim to reproduce in Kenya where we are currently progressing a farm-out initiative. We expect that the success of the recent Sunbird-1 well will change the exploration landscape offshore Kenya where FAR is well positioned with a strong acreage position. It is wonderful that FAR has a deep African portfolio of opportunities for our shareholders.”

Cath Norman
Managing Director

8593

 

[bigdog]

http://far.live.irmau.com/irm/Company/ShowPage.aspx/PDFs/1871-19267559/EquityRaisingof80million

Equity raising of $8 MILLION
FAR Ltd ("FAR" ASX: FAR) is pleased to announce an equity raising placement which is expected to raise $8 million before expenses. The placement was arranged by Bell Potter Securities Limited (“Bell Potter”) as Lead Manager.

The placement is being undertaken to fund further exploration in offshore Kenya potentially including accelerating the evaluation of the Miocene reef oil play offshore Kenya in which the company has a significant acreage position and for general working capital purposes.

The placement of a total of 200,000,000 new ordinary shares in the Company (“Ordinary Shares”) will raise $8 million before expenses.

The price per new share offered under the Placement of A$0.04 per new share represents a 15% discount to the Company’s current market price on the ASX and a 10% discount to the 30-day volume weighted average price on the ASX.

FAR’s Managing Director, Ms Cath Norman, said, “FAR is pleased to have raised money to allow the company to move forward our key position in Kenya in the short term. Building our portfolio of opportunities for our shareholders is key to our strategy and we aim to deliver a high impact drilling program in Kenya following on from the current drilling program offshore Senegal.”

Upon completion of the Placement, the Placement Shares will represent approximately 7.4% of the enlarged share capital of the Company and the Company will have 2,699,846,742 Ordinary Shares on issue. The Placement Shares will, when issued, rank equally in all respects with the existing Ordinary Shares.

Application will be made to the ASX for the Placement Shares to be admitted to be quoted on the ASX. Settlement of the Placement Shares are expected to occur Friday 6 June 2014 with normal trading to occur Tuesday 10 June 2014.

The presentation used for capital raising purposes was the same as the Annual General Meeting Presentation released on 28 May 014.

The trading halt in the Company’s new shares can now be lifted.

8906

 

[bigdog]

ASX ANN FAR

FAR $0.056 $+0.009 +19.15% @ Wed 27 Aug 2014 10:41 AM
-- high of 0.062 earlier

27/08/2014 10:09:54 AM Oil samples recovered in FAN-1 exploration well Senegal
http://www.asx.com.au/asxpdf/20140827/pdf/42rsbq49srxm19.pdf

Oil samples have been recovered in the FAN-1 exploration well being drilled offshore Senegal by FAR Ltd (ASX:FAR) and its joint venture partners Cairn Energy PLC (Operator), ConocoPhillips and Petrosen - the Senegalese national oil company.

Elevated gas and fluorescence were encountered in a shallow secondary target and the presence of oil was confirmed by an intermediate logging program. Oil samples from a thin sand were collected by an MDT wireline formation tester for further analysis. This well data confirms the existence of a working petroleum system.

The FAN-1 well has reached a depth of 4402 metres where intermediate casing has now been set. The well will be deepened to planned Total Depth (“TD”) of approximately 5000 metres. Conclusive results for this well will not be available until drilling operations are completed and all of the well data is fully assessed. The Operator anticipates that drilling of the FAN-1 well will be completed during the next month after which time the rig will be moved to the SNE-1 well location, the second well of the two well program offshore Senegal.

FAR Managing Director, Cath Norman said, ”The presence of oil In the secondary target is important in helping our geological understanding of the margin and is significant because it confirms the existence of a working petroleum generating system. It is very pleasing that the building blocks of a working petroleum system are present and we look forward to drilling ahead to deeper objectives in FAN-1 and completing the SNE-1 well.”

As previously announced, the drilling program has been designated as “tight” by the Operator and hence no information related to depth or formation will be provided during the drilling beyond what is required to meet ASX continuous disclosure obligations.

This release in relation to the matter referred to in the Company’s trading halt announcement of 25 August 2014.

Pre-drill estimates
The FAN-1 well is designed to test a stacked fan structure with the potential to contain approximately 900 million barrels of oil (mmbbls) (unrisked prospective resources)* with approximately 135mmbbls net to FAR* which owns a 15% working interest. FAN-1 will be followed immediately by the SNE-1 well to be drilled on the shelf targeting approximately 600mmbbls of oil (unrisked prospective resources)* with approximately 90mmbbls net to FAR* (reference: FAR ASX release of 27 February 2013).

About the drilling offshore Senegal
FAN-1 is the first exploration well in a two well program, offshore Senegal with the wells to be drilled back to back. The first well will be located on the North Fan prospect in 1,500m water depth. This well will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water (See figures 1, 2 and 3).

These will be the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years. The two exploration wells will test combined prospective resources of approximately 1.5 billion barrels of unrisked prospective resources* (225 mmbbls net to FAR*) and FAR retains a 15% working interest in the blocks. (Reference: FAR ASX release of 27/2/2013).

The FAN-1 well is a pure exploration well and, even if successful, will not be completed as a commercial production well. In the event of a success, the Joint Venture may decide to conduct further drilling and evaluation activities.

88

 

[bigdog]

FAR $0.082 $+0.004 +5.13% FAR LTD FPO (ORDINARY FULLY PAID) Tue 16 Sep 2014 9:00 PM (Sydney time)
volume 81,946,193 from 997 trades with value $6,740,389
high 0.086 and low of 0.080

SHARE PRICE HAS BEEN MOVING UP
Date_____ Close _Volume
16/09/2014 0.082 81,946,193 with high of 0.086
15/09/2014 0.078 35,447,796
12/09/2014 0.069 31,878,887
11/09/2014 0.070 43,989,651
10/09/2014 0.071 62,939,854
09/09/2014 0.065 94,250,347
08/09/2014 0.055 9,218,045
05/09/2014 0.054 7,639,842



Two speeding tickets in past week
FAR 16/09/2014 12:38:40 PM Response to ASX Price Query
FAR 9/09/2014 1:13:12 PM Response to ASX Price Query

RESPONSE FROM FAR INCLUDED:
The Entity notes speculation on investor websites in relation to the FAN-1 well currently being drilled offshore Senegal and believes the increase in share price and volume may relate to this speculation.

The FAN-1 well remains in an active operational phase. As reported in our announcement entitled ‘Oil samples recovered in FAN-1 exploration well offshore Senegal’ released on 27 August 2014 and ‘Half Year Report’ released on 12 September 2014, we anticipate completion of drilling on the FAN-1 well by the end of this month.

The well has been declared a ‘tight hole’ by the Operator and as such no information related to depth or formation will be provided during the drilling beyond what is required to meet ASX continuous disclosure obligations.

FAR is reliant on the Operator (Cairn Energy of the UK) to provide information on the status of the well and any evaluation work.

We note that the Operator has made no recent announcement on the well. In these circumstances share market participants should exercise care before contemplating transacting in FAR shares until such time as FAR provides formal advice from the Operator received in this regard.

info: TIGHT HOLE - A drilling well about which all information - depth, formations encountered, drilling rate, logs - is kept secret by the operator. (CAIRN ENERGY CNE)

FAR was leading ASX stock sold today in volume
FAR Limited ASX:FAR $0.082 +5.128% 81,946,193 shares


PRIOR ASX ANNOUNCEMENT
27/08/2014 10:09:54 AM Oil samples recovered in FAN-1 exploration well Senegal
http://www.asx.com.au/asxpdf/20140827/pdf/42rsbq49srxm19.pdf

Oil samples have been recovered in the FAN-1 exploration well being drilled offshore Senegal by FAR Ltd (ASX:FAR) and its joint venture partners Cairn Energy PLC (Operator), ConocoPhillips and Petrosen - the Senegalese national oil company.

Elevated gas and fluorescence were encountered in a shallow secondary target and the presence of oil was confirmed by an intermediate logging program. Oil samples from a thin sand were collected by an MDT wireline formation tester for further analysis. This well data confirms the existence of a working petroleum system.

The FAN-1 well has reached a depth of 4402 metres where intermediate casing has now been set. The well will be deepened to planned Total Depth (“TD”) of approximately 5000 metres. Conclusive results for this well will not be available until drilling operations are completed and all of the well data is fully assessed. The Operator anticipates that drilling of the FAN-1 well will be completed during the next month after which time the rig will be moved to the SNE-1 well location, the second well of the two well program offshore Senegal.

FAR Managing Director, Cath Norman said, ”The presence of oil In the secondary target is important in helping our geological understanding of the margin and is significant because it confirms the existence of a working petroleum generating system. It is very pleasing that the building blocks of a working petroleum system are present and we look forward to drilling ahead to deeper objectives in FAN-1 and completing the SNE-1 well.”

As previously announced, the drilling program has been designated as “tight” by the Operator and hence no information related to depth or formation will be provided during the drilling beyond what is required to meet ASX continuous disclosure obligations.

This release in relation to the matter referred to in the Company’s trading halt announcement of 25 August 2014.

Pre-drill estimates
The FAN-1 well is designed to test a stacked fan structure with the potential to contain approximately 900 million barrels of oil (mmbbls) (unrisked prospective resources)* with approximately 135mmbbls net to FAR* which owns a 15% working interest. FAN-1 will be followed immediately by the SNE-1 well to be drilled on the shelf targeting approximately 600mmbbls of oil (unrisked prospective resources)* with approximately 90mmbbls net to FAR* (reference: FAR ASX release of 27 February 2013).

I HOLD

426

 

[bigdog]

SP down a little today!!

FAR $0.078 $-0.002 -2.50% FAR LTD FPO (ORDINARY FULLY PAID) Thu 18 Sep 2014 8:20 PM (Sydney time)
high 0.080 & low 0.075; volume 14,138,178; trades 248; $1,101,129

ASX ANN -
FAR 18/09/2014 4:05:30 PM Becoming a substantial holder
http://www.asx.com.au/asxpdf/20140918/pdf/42s9d6ptzs4s0t.pdf

The substantial buyer was FARJOY PTY LTD (MD Timonthy Frank Robertson) who now owns 5.04% of the shares who have been buying shares since June 2014 and the majority of shares during the past 12 days.

Farjoy posted the following on Hot Copper today about their purchases.
http://******************/threads/b...2362169/page-40?post_id=13995848#.VBq0SxZ1OSo


1. There has been speculation on HotCopper about recent trading in FAR, and after our market announcement today that we hold more than 5%, about Farjoy’s investment in FAR.

2. This note is to set the record straight.

3. I am the Managing Director of Farjoy and am responsible for its decisions.

4. Farjoy is a long term investor. It has been investing in oil and gas now for 50 years. It is a significant or substantial shareholder in numerous public companies, positions it has held in some cases for many years.

5. Farjoy’s investments are also strategic, in the sense that it will take positions in industries which it foresees will prosper in the medium term. It takes account of geopolitical concerns and has regard to long-range forecasting. It is also an investor in African enterprises, some public and others private.

6. We have been invested in FAR for some years, in a modest way, and participated in the recent capital raise for the Kenyan prospects, on the strength of the miocene reefs and our knowledge of Rift geology.

7. We then examined the West African prospects. We noted that Cairn had published its opinion of the odds of a commercial strike, and concluded that there was a reasonable (one in five) chance of success. Once the August announcement was made (working petroleum system and oil in the upper northern fan), we decided that the chance of success was one in two.

8. Our decisions to increase our exposure were made on the basis of published information and research, and our view about the strength of management - nothing else. We have not sold FAR, as our notice discloses.

9. There are two papers published in the grey literature, one a joint Hunt/FAR discussion of the 3D of the Fan systems and the 1970s drilling program on the Rufisque dome, and the other a USGS analysis of petroleum systems of Senegal and neighbouring States. There are numerous published papers on the Rio Muni basin, which has strikingly similar geology. Cairn has published a list of its contractors on the Senegal play. Cairn and FAR have made announcements on prospects, and FAR on drilling.

10. FAR is drilling into the best prospect off the upper West coast, and its 3D shows that all the characteristics of a successful oilfield are present, bar the oil. There are numerous stacked fans (old river deltas with good porosity), and 3 fan systems (north central and south), and the 1970s drilling found oil in the Dome, and a kitchen at work. It produces Types 1 and 2 kerogen, with extremely high organic content, as the graph in the FAR presentation to the Good Oil conference shows. FAR has announced that there is oil in the upper northern fan. So long as they are sealed, there should also be oil in the lower fans, as oil migrates upwards under pressure. The strike would also derisk the second hole (already partly drilled) because of its proximity to the north fans, as well as the middle and south fans, which would be drilled for appraisal if there is a commercial strike at the northern fans. It is probable that the reservoirs identified in the 3D would be filled from the same source kitchen. The Senonian unconformity introduces fascinating parallels with the Rio Muni and Levantine basins. Against this is the possibility that the field is uncommercial because of poor seals, oil quality etc.

11. There are numerous risks which attend commercialisation, especially off West Africa. These are balanced by
a. the desperation of host countries to relieve poverty, which sometimes translates into sensible policy decisions within legal frameworks protected by ICSID based investor protection treaties (with which we are familiar through litigation and our experience in Mauritius, Tanzania and Malawi),
b. increasing instability in Iraq and Libya,
c. sanctioned production in Iran and Russia, and
d. expected enhancements to supply security in the EU.

12. The Netherlands, which is the leading EU crude oil consumer, imports 40% from Russia, and 7% from Africa. I think that it would prefer the reverse, and may be prepared to fund appraisal or production drilling by forward sales, if Senegal proves a large enough commercial field.

13. I am not a geologist and do not give investment advice. You should not rely on my opinion to make investment decisions.

0525

 

[bigdog]

The moment FAR shareholders have been waiting for is not far away!!!

FAR 6/10/2014 9:23:17 AM Trading Halt
http://www.asx.com.au/asxpdf/20141006/pdf/42spry9djwyvl4.pdf

Request for Trading Halt
FAR Ltd (ASX: FAR) requests a trading halt in its securities effective immediately pending an announcement by FAR Ltd in relation to an update on the Senegal FAN-1 well results:

In accordance with Listing Rule 17.1, FAR advises that it:
(a) is seeking the trading halt pending an announcement in relation to the Senegal FAN-1 well results;

(b) wishes the trading halt to last until the earlier of the time when the announcement is released or FAR Ltd requests the trading halt to cease, subject to the limit imposed by ASX Listing Rules and in any event no later than the commencement of trading on Wednesday, 8 October 2014; and

(c) is not aware of any reason why the trading halt should not be granted.

If you have any queries in relation to the above, please do not hesitate to contact me.
Yours sincerely
Cath Norman

I Hold FAR and is my share tip for Oct Comp

852

 

[bigdog]

NO ASX ANNOUNCEMENT YET.

However, CAIRN ENERGY made announcement in UK minutes ago!!

http://www.cairnenergy.com/index.asp?pageid=27&newsid=460

News
Oil discovered offshore Senegal

7 October, 2014

Cairn together with its joint venture partners is pleased to announce that the FAN-1 exploration well, offshore Senegal, has discovered oil.

The well, located in 1,427 metres (m) water depth and approximately 100 kilometres offshore in the Sangomar Deep block, has reached a Target Depth (TD) of 4,927 m and was targeting multiple stacked deepwater fans.

Preliminary analysis indicates:

29m of net oil bearing reservoir in Cretaceous sandstones
No water contact was encountered in a gross oil bearing interval of more than 500m
Distinct oils types ranging from 28 ° API up to 41 ° API indicated so far from a number of oil samples recovered to surface
Initial gross STOIIP estimates for the FAN-1 well range from P90, 250 mmbbls, P50, 950 mmbbls to P10, 2,500 mmbbls and are broadly in line with pre-drill STOIIP estimates

As stated prior to the commencement of operations there are no plans for immediate well testing. Further evaluation will now be required to calibrate the well with the existing 3D seismic in order to determine future plans and optimal follow up locations to determine the extent of the discovered resource.

Once operations are completed on the FAN-1 well, the rig will move to complete the second well, SNE-1 where the top hole has been drilled pending re-entry. This Shelf Edge Prospect targeting a dual objective in 1,100m water depth is in the Sangomar Deep block.

The FAN-1 well was drilled using the semi-submersible drilling unit "Cajun Express". It is the third well in Cairn's North West Africa programme and first in Senegal.

Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) ConocoPhillips has 35% WI, FAR Ltd 15% WI and Petrosen, the national oil company of Senegal 10% WI. The three blocks cover 7,490 km².

Simon Thomson CEO Cairn Energy PLC said;

"The oil discovered in the FAN-1 prospect is an important event for Senegal and the Joint Venture.

We have encountered a very substantial oil bearing interval which may have significant potential as a standalone discovery. Furthermore, this result materially upgrades the prospectivity of the block with a proven petroleum system and a number of deep fan and shelf prospects established.

Work is already underway with the Joint Venture partners to determine follow up activity which is targeted for 2015 onwards.

Cairn looks forward to working with the Government of Senegal and our partners to realise the full potential from this large acreage position off the West coast of Senegal."

950

 

[bigdog]

http://www.asx.com.au/asxpdf/20141007/pdf/42sqwsg4h21knx.pdf
FAR 7/10/2014 5:52:47 PM Significant oil discovery offshore Senegal

The ASX announcement included "A significant oil discovery" compared to Cairn Announcement

7 October 2014
Significant oil discovery offshore Senegal

A significant oil discovery has been made in the FAN-1 exploration well by FAR Ltd (ASX: FAR) offshore Senegal in West Africa.
Preliminary analysis indicates:

• 29 metres of net oil bearing reservoir in Cretaceous age sandstones,
• A gross oil bearing interval of more than 500 metres,
• No oil/water contacts were encountered,
• Distinct oil types ranging from 28 ° API up to 41 ° API from a number of oil samples recovered to surface.

The key pre-drill well objectives have been met with preliminary well results indicating a significant resource volume. FAR has also identified potential net oil bearing reservoirs in addition to those included in the preliminary analysis.

As intended pre-spud, there are no plans for immediate well testing. Further analysis of the oil samples, core data and wireline logs is being completed to evaluate the net oil bearing reservoirs and the possible additional pay intervals in order to assess the full potential of the resource.

Consideration is now being given to formulating a follow up appraisal and exploration program. Calibration of the FAN-1 well with the existing 3D seismic will be undertaken to fully understand the discovery, determine future plans and optimal drilling locations.

Cath Norman FAR managing director said:
“The FAN-1 oil discovery is an important event for Senegal and the Joint Venture and could be transformational for FAR.
We have encountered a very substantial oil bearing interval which has potential to be a significant standalone development. Confirmation of a proven hydrocarbon system materially upgrades the potential of the multiple deep fan and shelf edge prospects that FAR has identified in the blocks.

FAR looks forward to working with the Government of Senegal and our joint venture partners in determining follow up appraisal and exploration drilling plans.

I thank shareholders for their support during this exciting time and look forward to providing further information on the FAN-1 well and continuing the current drilling program with the second exploration well, SNE-1. The FAR Board is committed to protecting and realising the full value of its Senegal blocks for the benefit of its shareholders.”

Drilled in 1,427 metres of water to a total depth of 4,927 metres, the FAN-1 well is located 100km offshore in the Sangomar Deep block and targeted a series of stacked deep water fans. The well was drilled using the semi-submersible drilling unit “Cajun Express”. The FAN-1 well has been drilled to TD and logged and the rig will shortly move to complete the second well SNE-1. This shelf edge prospect is targeting a dual objective in 1,100 metres water depth in the Sangomar Deep block evaluating prospective resources of 600 million barrels of oil (unrisked best estimate, 100% basis, reference ASX release of 27 February 2013*).

The participating interests in FAR’s three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) are: FAR 15%, Cairn Energy (Operator) 40%, ConocoPhillips 35% and Petrosen, the national oil company of Senegal 10%. The three blocks cover 7,490km².

This release is in relation to the matter referred to in the Company’s trading halt announcement of 6 October 2014.

A copy of Cairn Energy PLC release can be found at www.cairnenergy.com

About FAR in Senegal
FAR identified a number of play types and oil prospects from 3D seismic data in the Senegal Blocks – Sangomar Deep, Sangomar Offshore and Rusifique. Eleven prospects identified ranged in potential size from 58 to 632 million barrels (mmbbls) of prospective oil resource (un-risked, best estimate, 100% basis*). In combination, the blocks were assessed to have prospective resources of 3.585 billion barrels of oil (unrisked best estimate, 100% basis, reference FAR ASX release 27/2/2013*).

In 2014 FAR completed two farm-in agreements on its offshore Senegal blocks thus securing funding for the current 2 well drilling campaign. These agreements were with Cairn Energy PLC (“Cairn”) and ConocoPhillips.

On 17 April 2014, drilling commenced on the first of the two wells FAN-1. FAN-1 is the first exploration well in a two well program, offshore Senegal with the wells to be drilled back to back. The FAN-1 well is located in 1,427m water depth and is designed to evaluate two overlapping prospects – North Canyon and Beer (reference FAR ASX release 27/2/2013). This well will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water (See figures 1 and 2).

These two wells are the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years. The two exploration wells were planned to evaluate a combined prospective resources of approximately 1.5 billion barrels of unrisked prospective resources*(225 mmbbls net to FAR, reference FAR ASX release 27/2/2013*). FAR retains a 15% working interest in the blocks.

Location of the two Senegalese wells in the FAR 3D seismic area, offshore Senegal:

 

[bigdog]

The market liked the announcement yesterday!!

FAR $0.137 $+0.037 +37.00% @ Wed 08 Oct 2014 11:14 AM

High today of $0.157 current volume 107,926,682 trades 1,794 value $15,076,125 previous close $0.100

041

 

[bigdog]

FAR closed yesterday at 0.145 after high of 0.157 with volume of 200,727,961 shares

Date_____ Close Volume
08/10/2014 0.145 200,727,961
07/10/2014 0.100 0 trading halt
06/10/2014 0.100 0 trading halt
03/10/2014 0.100 45,621,201
02/10/2014 0.099 67,440,238
01/10/2014 0.084 16,777,315
30/09/2014 0.083 15,495,503
29/09/2014 0.082 37,880,734

"Farjoy buying another 53 million shares in FAR on Wednesday morning" -- now holds 10% of FAR




http://www.theage.com.au/business/m...l-offshore-oil-discovery-20141008-10rpyq.html

Explorer FAR's shares soar after Senegal offshore oil discovery
Date October 8, 2014 - 5:37PM
Angela Macdonald-Smith

Investors in junior oil explorer FAR have welcomed a 45 per cent surge in the value of their company thanks to an oil discovery off Senegal that has triggered comparisons with the billion-barrel-plus Jubilee find off Ghana.

The discovery by the FAN-1 well, revealed by venture operator Cairn Energy in London, was described as "transformational" for FAR by managing director Cathy Norman, who spent much of Tuesday afternoon at a celebration lunch in Melbourne.

London-listed Cairn has given potential oil-in-place numbers at FAN-1 as 250 million barrels in the 90 per cent case and 2.5 billion barrels in the 10 per cent case, with the most likely number 950 million barrels.

Estimates of potential recoverable volumes range from 15 to 18 per cent of that from more cautious analysts to 30 to 40 per cent by others.
Advertisement

Ms Norman signalled FAR was assuming the upper end of that range, given positive results so far.

Melbourne-based UBS oil and gas banker Gordon Ramsay, a petroleum geophysicist by training, drew a comparison between the find made by the FAN-1 well and the Jubilee oil discovery made by Tullow Oil and *Kosmos Energy off Ghana in 2007 – the largest oil find off west Africa.

"Jubilee looks like a very interesting analogy to this," Mr Ramsay said. "It is highly likely this is a multi-hundred-million-barrel oil discovery."

Ms Norman said the comparison with Jubilee was "fair, maybe not in terms of size because we haven't proven that, but certainly in terms of significance".

"It's probably going to open up a whole new area for exploration – that's the significance more than anything," she said.

Ms Norman said the find would open up exploration in the Senegal, Guinea-Bissau and Guinea area just as Jubilee did around the Ghana, Sierra Leone and Liberia part of west Africa.

FAR shares jumped as much as 60 per cent before closing at 14.5 ¢, adding $120 million to the junior's market cap.

Some believe it has much further to go, with NSW silk Timothy Robertson's family company Farjoy buying another 53 million shares in FAR on Wednesday morning at an average of 14.13 ¢.

Mr Robertson, whose company now owns 10 per cent of FAR, took to the day trader website HotCopper to explain his confidence in the Senegal play, describing it as "the best prospect off the upper west coast" of Africa.

He pointed to several other "fan system" structures that could also be filled with oil from the same "source kitchen".

Many risks still remain, however.

US energy consultant Tudor, Pickering, Holt & Co said it was "good to see a play-opening oil discovery", but raised questions over whether the discovery could be* *commercially developed.

The quality of the reservoir would be key, as that has caused a number of finds on the west African margin to be non-commercial, the consultant said.

Ms Norman said stating commerciality of the find now would be "foolish".

But she said at a conservative estimate of 350 million barrels of oil, the find cleared the hurdle to be commercial, which was 150 million to 200 million barrels.

"It's clear that what we've got at the moment could be a stand-alone development, which is fantastic news," she said. "And we're only just scratching the surface, there is still a lot more to come."

US major ConocoPhillips, which owns a 35 per cent stake in the find, said preliminary results from the drilling were "encouraging" but noted further evaluation was needed "in order to determine commerciality".

Cairn owns 40 per cent, while Senegal's national oil *company Petrosen owns the remaining 10 per cent

 

[bigdog]

FAR closed Friday at $0.120 $0.000 (0.00%)



Date_____ __High _Close Volume
10/10/2014 0.120 _0.120 38,477,828
09/10/2014 0.140 _0.120 40,448,103
08/10/2014 0.157 _0.145 200,727,961
07/10/2014 0.000 _0.100 0 trading halt
06/10/2014 0.000 _0.100 0 trading halt

"RCF Ambrian analyst Stuart Amor wrote: “We reiterate our speculative buy rating. We now estimate the stock’s fair value to be A21.1c, up from our previous A13.5c estimate"

http://resourcesrisingstars.com.au/infopage/5446

Ten Bagger, Friday 10th October
FAR out: rich oil find makes big profits for small punters

Junior oil explorer FAR Ltd (ASX: FAR) made the small punters’ dreams come true this week when it unveiled a major oil discovery off the West African coast.

FAR shares were just 3c when the company started drilling the FAN-1 well off the coast of Senegal in July. The stock rose to 10c last week in anticipation of the drilling results and hit a high of 16c on this week’s news of the find.

The well hit 29m of net oil bearing reservoir out of a gross oil bearing interval of more than 500m and, importantly, that no oil/water contacts were encountered.

The announcement prompted analysts around the world to set price targets of up to 21c for FAR, still well above the stock’s price this morning of xxc.

Bell Potter Managing Director of Institutional Equities, Angus Aitken, was enthusiastic about the discovery. “FAR announced they had made a major oil discovery off Senegal. Its black oil – minimal water and clearly this has the potential to be a 750 million to 1 billion barrel-plus structure that could lead to a 300m barrel contingent resource and hence at its current market cap of $270m, FAR`s 15 per cent interest is going to be worth an awful lot of money over time.

“This is not a one trick pony, they are putting down another well 20km from this well that is drilling as we speak and should see newsflow in November and that could add 300m barrels to the 300m contingent resource I talk about above. Fifteen per cent of a 600m barrel contingent resource with 15 per cent net to FAR is worth a lot more than the current stock price even if you put in $10 bucks per barrel.”

RCF Ambrian analyst Stuart Amor wrote: “We reiterate our speculative buy rating. We now estimate the stock’s fair value to be A21.1c, up from our previous A13.5c estimate.

“This oil discovery is fantastic (not a word we’ve been able to use to describe a well result in the last two years!) for FAR, albeit that the discovery is smaller than Cairn’s pre-drill estimate (817MMbbl).”

SBG Securities, a division of the Standard Bank Group, noted in a special report: “We have adjusted our valuation in light of the recent drilling results. Our risked equity value is up to A17c from A7c.

“Our estimate of the corresponding unrisked upside potential is A59c. At this stage, the stock has little core value support until a more robust independent assessment of the FAN-1 discovery is published. We maintain our buy rating with a revised target price of A15c up from A5c previously.”

1226

 

[bigdog]

Share price between 12 and 13 cents for past five days
Date____ Close Volume
15/10/2014 0.130 22,473,636
14/10/2014 0.130 27,446,173
13/10/2014 0.120 29,783,472
10/10/2014 0.120 38,477,828
09/10/2014 0.120 40,448,103

The large trades in previous weeks was when FARJOY was buying large parcels and has now accumulated 10% of FAR.

The CAJUN EXPRESS oil platform remains in the same location which is encouraging IMHO!


http://www.reuters.com/article/2014/10/15/senegal-oil-blocks-idUSL6N0SA3IM20141015

UPDATE 1-Senegal to award two offshore oil licences by year-end -Petrosen
Wed Oct 15, 2014 10:04am EDT

Oct 15 (Reuters) - Senegal will award exploration licences for two offshore oil blocks by the end of the year, the head of state-run hydrocarbons corporation Petrosen said on Wednesday.

The announcement comes days after Cairn Energy announced it had made an offshore oil discovery that Petrosen said was one of the biggest in Senegal's history.

"We already have proposals. We are evaluating the best for the state of Senegal," Petrosen Director General Mamadou Faye said of the two new northern offshore blocks.

Faye would not give the names of the firms who had shown interest in the new licences. He said Petrosen will look for funds to explore a third block for itself.

Firms have explored for oil offshore and onshore in Senegal for decades but none of the finds have been commercially viable.

Last week, Petrosen signed a $400 million "farm-in" agreement with Kosmos Energy for a 60 percent stake in the Cayar and St. Louis offshore blocks.

Cairn owns a 40 percent interest in three-block joint venture in which ConocoPhillips has 35 percent, FAR Ltd 15 percent and Petrosen 10 percent.

Speaking of Cairn's announcement last week, Faye said. "This is a real discovery. It is not fiction. It is one of the biggest oil finds ever in Senegal."

Cairn and Petrosen estimate the deep Sangomar offshore holds 250 million proven barrels and 2.5 billion probable barrels.

"Evaluations of the discovery are ongoing with the objective of determining the extent of deposit and elaborating a development plan for production," Faye said. (Reporting by Diadie Ba; Writing by Bate Felix; Editing by David Lewis and David Evans)

1442

 

[bigdog]

Closed today FAR $0.135 $+0.005 +3.85% volume 24,757,679; trades 565 $3,257,206 and up 62.65% for the month

http://www.reuters.com/article/2014/10/15/senegal-oil-blocks-idUSL6N0SA3IM20141015

UPDATE 1-Senegal to award two offshore oil licences by year-end -Petrosen

Oct 15 (Reuters) - Senegal will award exploration licences for two offshore oil blocks by the end of the year, the head of state-run hydrocarbons corporation Petrosen said on Wednesday.

The announcement comes days after Cairn Energy announced it had made an offshore oil discovery that Petrosen said was one of the biggest in Senegal's history.

"We already have proposals. We are evaluating the best for the state of Senegal," Petrosen Director General Mamadou Faye said of the two new northern offshore blocks.

Faye would not give the names of the firms who had shown interest in the new licences. He said Petrosen will look for funds to explore a third block for itself.

Firms have explored for oil offshore and onshore in Senegal for decades but none of the finds have been commercially viable.

Last week, Petrosen signed a $400 million "farm-in" agreement with Kosmos Energy for a 60 percent stake in the Cayar and St. Louis offshore blocks.

Cairn owns a 40 percent interest in three-block joint venture in which ConocoPhillips has 35 percent, FAR Ltd 15 percent and Petrosen 10 percent.

Speaking of Cairn's announcement last week, Faye said. "This is a real discovery. It is not fiction. It is one of the biggest oil finds ever in Senegal."

Cairn and Petrosen estimate the deep Sangomar offshore holds 250 million proven barrels and 2.5 billion probable barrels.

"Evaluations of the discovery are ongoing with the objective of determining the extent of deposit and elaborating a development plan for production," Faye said. (Reporting by Diadie Ba; Writing by Bate Felix; Editing by David Lewis and David Evans)

I hold and will not be selling yet!!



1498

 

[bigdog]

ASX ANN Potential Capital Raising

FAR 9:21 AM Trading Halt
http://www.asx.com.au/asxpdf/20141017/pdf/42syx2z9pwpvh9.pdf

Request for Trading Halt
FAR Ltd (ASX: FAR) requests a trading halt in its securities effective immediately pending an announcement by FAR Ltd in relation to a potential equity raising:

In accordance with Listing Rule 17.1, FAR advises that it:
(a) is seeking the trading halt pending an announcement in relation to a potential equity raising;

(b) wishes the trading halt to last until the earlier of the time when the announcement is released or FAR Ltd requests the trading halt to cease, subject to the limit imposed by ASX Listing Rules; and

(c) is not aware of any reason why the trading halt should not be granted.

The securities of FAR Limited (the “Company”) will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Tuesday, 21 October 2014 or when the announcement is released to the market.