Australian (ASX) Stock Market Forum

FAR - FAR Limited

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Miner said:
Hello @Joe Blow and @bigdog
Just curious !
I got an email but could not find @bigdog mail. May be it was deleted and technology did not catch up
Click to expand...

@bigdog posted in this thread just before 9am but subsequently deleted his post. You must have gotten an email alert that he had posted in the thread but didn't get here until after it had been deleted.
 
Trading reopens at 10:37 :)

Successful completion of AU$45 million capital raising

Not for release in the United States

• Placement to institutional and sophisticated investors
• Proceeds to fund FAR’s ongoing interest in the SNE Field development, preparatory work for the proposed 2020 drilling program, Australian seismic and processing costs, and general corporate purposes FAR Limited (ASX: FAR) is pleased to announce a placement to institutional and sophisticated investors to raise approximately AU$45 million before expenses by issuing 818,854,544 million shares (“Placement”). The proceeds from the Placement (after costs) will be used to fund FAR’s ongoing interest in the SNE Field development, preparatory work for the proposed 2020 drilling program, Australian seismic and processing costs, and general corporate purposes. The Placement price of 5.5 cents per share represents a 1.8% discount to FAR’s last closing share price on 30th April 2019 of 5.6 cents and a 4.9% discount to the volume weighted average share price for the 30 trading days ended 30th April 2019. Upon completion of the Placement, the Placement shares will represent approximately 13% of the enlarged share capital of the company, which will have 6,280,387,002 ordinary shares on issue. The Placement shares, when issued, will 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 is expected to occur in two tranches with the first tranche settling on Tuesday, 7 th May 2019 of AU$38.9 million with normal trading to occur on Wednesday, 8 th May 2019. We will inform the market once settlement of the second tranche of AU$6.1 million has been completed. FAR thanks Bell Potter Securities Limited for their management and bookrunning services
 
The Placement price of 5.5 cent sper share represents a 1.8% discount to FAR’s last closing share price on 30th April 2019 of 5.6 cents and a 4.9% discount to the volume weighted average share price for the 30 trading days ended 30th April 2019

issuing 818,854,544 million shares (“Placement”)

which will have 6,280,387,002 ordinary shares on issue (6.3 billion)

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Plus $45 million raised + cash and term deposits end of quarter

Looks like they will have a lot of cash

SP after reopening at 10:37 this morning

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Details of announcement are:
2/05/2019 10:16:06 AM Successful completion of AU$45 million capital raising

Successful completion of AU$45 million capital raising
Not for release in the United States

•Placement to institutional and sophisticated investors

•Proceeds to fund FAR’s ongoing interest in the SNE Field development, preparatory work for the proposed 2020 drilling program, Australian seismic and processing costs, and general corporate purposes

FAR Limited (ASX: FAR) is pleased to announce a placement to institutional and sophisticated investors to raise approximately AU$45 million before expenses by issuing 818,854,544 million shares (“Placement”).

The proceeds from the Placement (after costs) will be used to fund FAR’s ongoing interest in the SNE Field development, preparatory work for the proposed 2020 drilling program, Australian seismic and processing costs, and general corporate purposes.

The Placement price of 5.5 cents per share represents a 1.8% discount to FAR’s last closing share price on 30th April 2019 of 5.6 cents and a 4.9% discount to the volume weighted average share price for the 30 trading days ended 30th April 2019.

Upon completion of the Placement, the Placement shares will represent approximately 13% of the enlarged share capital of the company, which will have 6,280,387,002 ordinary shares on issue. The Placement shares, when issued, will 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 is expected to occur in two tranches with the first tranche settling on Tuesday, 7th May 2019 of AU$38.9 million with normal trading to occur on Wednesday, 8th May 2019. We will inform the market once settlement of the second tranche of AU$6.1 million has been completed.

FAR thanks Bell Potter Securities Limited for their management and book running services

Shareholder approval for the shares issued pursuant to the Placement is not required as the Placement shares are being issued within FAR's existing placement capacity under Listing Rule 7.1.

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Speeding ticket

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Response
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Five day share price chart
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Offshore groups eye Far, Cairns Energy oil stake - The Australian
The sale process for a stake in Far Limited and Cairn Energys Senegal project is thought to be moving forward and bids for the business are understood to have

This was published in the Australian which I do not have access to

Above is all that I can see
 
A bit more from the Australian BD


It is thought indicative bids for the business were due on June 10 in a sales process run through advisory firm Jefferies.

The SNE development, off the coast of Senegal in West Africa, has an overall value of $US3 billion ($4.4bn).

It is 15 per cent-owned by Far. Cairn owns about 40 per cent, and a 30 per cent stake is understood to be on offer by Cairn to finance the project.

The other owners are the operator, Woodside, which holds 35 per cent, and Petrosen, the Senegalese national oil company, with 10 per cent.

Offshore groups are expected to show interest, including PTT out of Thailand.

The SNE deepwater oilfield discovery is offshore, 100km south of Dakar. It was the largest oil discovery for 2014 and production is first targeted for 2022. Capacity is estimated at 100,000 barrels a day."

https://www.theaustralian.com.au/bu...ps-eye-far-cairns-energy-oil-stake/news-story
 
IFocus said:
A bit more from the Australian BD


It is thought indicative bids for the business were due on June 10 in a sales process run through advisory firm Jefferies.

The SNE development, off the coast of Senegal in West Africa, has an overall value of $US3 billion ($4.4bn).

It is 15 per cent-owned by Far. Cairn owns about 40 per cent, and a 30 per cent stake is understood to be on offer by Cairn to finance the project.

The other owners are the operator, Woodside, which holds 35 per cent, and Petrosen, the Senegalese national oil company, with 10 per cent.

Offshore groups are expected to show interest, including PTT out of Thailand.

The SNE deepwater oilfield discovery is offshore, 100km south of Dakar. It was the largest oil discovery for 2014 and production is first targeted for 2022. Capacity is estimated at 100,000 barrels a day."

https://www.theaustralian.com.au/bu...ps-eye-far-cairns-energy-oil-stake/news-story
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@IFocus
Technically with WPL stake, there was no ripple on share price of WPL today, nor there was any announcement or trading halt on WPL. It could be for WPL the value of transaction is not materially significant to have any trading halt or pre-emptive announcement.
Nonetheless, both your and @bigdog's postings are on positive sides for FAR holders.
Lets see
 
Would expect FAR to rise sometime in the coming months!!

Half Year Accounts issued August 29 2019 with $35.8 million in the bank

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12 month high of $0.137 and 12 month low $0.053

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Topped up as it looks like another routine of getting smashed by the big guys.

RU good oil or RU not ?

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Doesn't get much worse than that.
 
Down a few more pips in the last month, however...

"Potential for 1.2 billion barrels of oil offshore The Gambia"

The company’s wholly owned subsidiary, FAR Gambia Ltd. announced the figure following completion of detailed geotechnical studies incorporating data from the Samo-1 well.

Blocks A2 and A5, which FAR operate with 50% working interest, cover 2,682km² of the Mauritania-Senegal-Gambia-Bissau-Conakry (MSGBC) Basin, in water depths ranging from 50 to 1,500 metres and lie adjacent to FAR’s world class SNE oil field. The Combined Prospective Resources for the two blocks was assessed at 1.2 billion barrels (unrisked, Best Estimate, recoverable, 100% basis) with 621 million barrels net to FAR.

Operations are now underway to prepare for drilling in 2020. A 3D seismic survey will be undertaken in late 2019 to further delineate some large leads mapped out in Block A5 and firm it into prospect status.

And then today > FAR Limited (ASX: FAR) releases the economic data for the development of the world class SNE oil field offshore Senegal pdf

FAR Limited (ASX: FAR) releases the economic data for the development of the world class SNE oil field offshore Senegal.
SNE, the world’s largest conventional oil discovery in 2014, is today recognised as a global tier one oil field with 2C oil resources in excess of 640 mmbbls1. The project will deliver FAR a net 13,670 bbls/d of oil production at US$$11 bbl OPEX.

The unlevered project internal rate of return (IRR) is in excess of 30%2. FAR and the JV partners believe the robust economic returns for SNE has the potential to improve with acceleration of future development phases as well as the monetisation of gas, and improved oil recoveries.

A key change to previous guidance on total CAPEX for the development has been due to the shift from a leased FPSO (OPEX) to a purchased FPSO (CAPEX). As a result, it is likely that a larger proportion of the total CAPEX will be debt funded.

Formal government approval of the Development and Exploitation Plan (EP) and Final Investment Decision (FID) is anticipated in December 2019 with first oil forecast in late 2022.

FAR managing director Cath Norman, said, “The release of the economics for the development of the SNE oil field marks an important milestone for FAR, the Government of Senegal and the RSSD Joint Venture. The Joint Venture will now progress the final submission of the Development and Exploitation Plan for the SNE Field to the Minister of Energy in Senegal and anticipate approval of the plan by Presidential decree before the end of the year. The finalisation of the economics also allows the JV partners to conclude funding arrangements and FAR looks forward to updating shareholders in the coming weeks. On successful completion of the financing for the development, FAR will be fully funded through to first oil from SNE in late 2022.
Given the strong economics for the development, the value of FAR’s share of the SNE field is forecast to triple in value between now and first oil. This is a terrific result for FAR shareholders, especially given this estimate does not take into account the anticipated upside opportunities that are anticipated through the development.
FAR’s transition to being an oil producer is an exciting one – and will see FAR become a material Australian listed oil producer from 2023.”

Still unloved but worth a tip in the comp :)
 
FAR is now at 5 year low

Far is an oil and gas explorer focused on opportunities in West Africa and Senegal in particular. It has been heavily hyped in the past and boasted of two “world class” oil discoveries in offshore Senegal.

Far claims to own offshore blocks in Gambia that contain more than 1 billion barrels of oil according to previous estimates. The excitement around its claims has seen the share price reach as high as 14 cents and a more than $700 million valuation.

FAR announced 14/11/2019 2:57:50 PM Financing update for the SNE field development (attached)

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I hold and have tipped several times in monthly tipping
397
 

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It's making a fool of me in this months' comp but still handy for a quick bit of pip trading :)

It's been getting shorted to hell of late.
 
https://www.reuters.com/article/us-...-stake-in-senegal-oil-field-ceo-idUSKBN1XT02V

November 19, 2019 / 11:45 AM / 10 days ago
Woodside would consider increasing stake in Senegal oil field: CEO

MELBOURNE (Reuters) - Woodside Petroleum (WPL.AX) would consider increasing its equity stake in the Sangomar oil project off Senegal if any of its partners looked to sell down their stake, Chief Executive Peter Coleman said on Tuesday.

Coleman told analysts at a briefing that if the partners looked to sell any of their equity, Woodside would look at acquiring that “very very closely”. He was asked whether the company, as operator of the Sangomar project, would want to increase its 35% equity stake.

Woodside’s partners in the project are Cairn Energy (CNE.L), FAR Ltd (FAR.AX) and the Senegal government.

Following slide included Sept 11 2019 Investor presentation

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Potential for 1.2 billion barrels of oil offshore The Gambia

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I hold



553
 
I hold as well and this is probably the first time I would be holding out for a speeding ticket :p
 
ASX Announcement today
3/12/2019 8:56:55 AM Development and Exploitation Plan submitted for Senegal (uploaded)

FAR needs some news to help to lift the share price just above 5+ year low

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10 year chart
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It is very odd that FAR share price seems to have a remorselessly bearish trajectory when it's partner WPL has such an upbeat view on it's Senegal venture.

Very odd indeed.

SP always trumps announcements as to the future imo.

gg
 
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