25 Nov 2011other● Neutral
Compliance notice for about 26.7m FAR shares issued to professional advisers as payment for advisory services, at prices of 2.6 to 3.02 cents. Administrative; the text does not link it to the Flow takeover.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
21 Nov 2011business combination▲ Good
FAR's Flow Energy offer closed with FAR holding 95.23% of Flow's shares. Compulsory acquisition of the remainder has begun, expected to finish before the end of 2011. Completes the takeover launched in September.
10 Nov 2011business combination▲ GoodMajor
FAR declares its Flow Energy takeover offer fully unconditional, holding 93%. Accepting Flow holders get FAR shares within five business days; the offer closes 18 November 2011, with compulsory acquisition of the rest planned. Follows the 90.1% milestone in October.
26 Oct 2011business combination▲ Good
FAR's interest in Flow Energy passes 90% (90.1%), satisfying the minimum acceptance condition. The offer is extended to 18 November 2011. This moves the merger close to compulsory acquisition of the rest.
12 Oct 2011business combination▲ Good
FAR's interest in Flow Energy reaches 75.5% and the offer is extended to 4 November 2011. A Personal Property Securities Act condition has been satisfied; the 90% minimum acceptance condition remains.
30 Sept 2011business combination▲ Good
FAR's relevant interest in Flow Energy passes 50% (50.7%), giving it control. Ophir's option to acquire 25% of FAR's Senegal licences is extended from 30 September to 31 December 2011 by mutual consent.
27 Sept 2011business combination▲ Good
FAR holds a relevant interest in 36.96% of Flow Energy after all Flow directors and the pre-bid parties accepted the offer. Early progress on the takeover, which still needs 90% acceptance.
22 Sept 2011investor presentation● Neutral
Investor presentation on the Flow Energy merger. Repeats the terms: 42.66 FAR shares per Flow share, valuing Flow at $25m, based on FAR's 2.8c close. Pro forma shares of 2,123.4m. No new information.
21 Sept 2011other● Neutral
Lodges the formal Bidder's Statement and Flow's Target's Statement for the Flow Energy takeover. The offer is 42.66 FAR shares per Flow share and closes 21 October 2011 unless extended. Documents only; terms were announced earlier the same day.
21 Sept 2011business combination▲ GoodMajor
FAR launches a recommended takeover of Flow Energy at 42.66 FAR shares per Flow share, valuing Flow at about $25m. It adds Kenya, Jamaica and Australian blocks, and Flow's Catherine Norman joins as Managing Director. Flow holders would own 41.3% of the combined company.
13 Sept 2011other● Neutral
Announces the record date (22 September 2011) and payment of $0.016875 per note, at 15% a year, for the September quarter on FAR's convertible notes. Routine administrative notice.
5 Sept 2011half year report▼ Bad
Half-year accounts to 30 June 2011: loss $6.33m (versus $0.79m a year earlier), cash $32.3m. Confirms Kora-1 plugged and abandoned, AGC first renewal extended to 19 September 2012, and Ophir's Senegal option expiring 30 September 2011 with no notice received.
1 Sept 2011investor presentation● Neutral
Africa Down Under presentation promoting FAR's West African acreage and 2012 drilling plans, subject to farmouts and approvals. Shows share price 3.2c, market cap $40m, cash $26m. Repeats known facts, but the price is far below 16c in February.
28 July 2011drilling result▼ BadMajor
Kora-1 reached 4,447.5m and will be plugged and abandoned as unsuccessful: it found claystone and limestone rather than the expected sandstone reservoir. This is a major setback after the Ophir deal; FAR still plans a Senegal well in 2012 and possibly 2 in Guinea Bissau, subject to farmout.
28 June 2011drilling spud▲ GoodMajor
Drilling has started on Kora-1, the first deepwater well in the region, targeting mean 448m bbl in 2,700m of water. FAR holds 8.8% beneficial interest, with Noble at 30%. No periodic updates will be released during drilling.
9 June 2011joint venture update▲ Good
Noble Energy has farmed into the AGC Profond block, which includes the Kora prospect. FAR's 10% paying interest (8.8% beneficial) is unaffected. The rig is due on location towards the end of June.
8 June 2011other● Neutral
Announces the record date (22 June 2011) and payment of $0.016875 per note, at 15% a year, for the June quarter on FAR's convertible notes. Routine administrative notice.
21 Apr 2011drilling scheduled▼ Bad
Because of operational delays, the Kora well is now expected to start around 15 May 2011, later than the 11 April date given on 25 March. The timing still depends on the rig being released from a Ghana contract.
11 Apr 2011investor presentation● Neutral
AGM presentation by the chairman. Shows 1.245 billion shares at 12 cents (market cap about $149m) and cash $36.1m, with the Kora well now expected in early May 2011. Repeats known facts; no new results.
25 Mar 2011farm in farm out completion▲ GoodMajor
Detailed agreements with Ophir are finalised and the AGC approval granted: FAR gets a 10% paying interest (8.8% beneficial) in AGC Profond, and Ophir may acquire 22.5% of FAR's Senegal licences. Kora-1 (mean 448m bbl) is expected to spud about 11 April 2011.
14 Mar 2011annual report▲ Good
Annual Report for 2010, lodged in March 2011. The chairman cites the Ophir Kora deal and the $34m raising as key milestones, and says up to two Guinea Bissau wells are likely in 2012. Market capitalisation reached $200m in early 2011.
10 Mar 2011other● Neutral
Announces the record date (23 March 2011) and payment of $0.016875 per note, at 15% a year, for the March quarter on FAR's convertible notes. Routine administrative notice.
7 Feb 2011investor presentation● Neutral
Cape Town Indaba presentation promoting the Kora well and FAR's West African licences. Shows 1.244 billion shares at 16 cents (market cap about $199m) and cash $38.1m, versus 6.5 cents in October 2010. Repeats known facts.
31 Jan 2011material agreement▲ Good
CNOOC has internally approved the Beibu Gulf development plan, which should lead to the US$3m second payment to FAR once regulatory matters are satisfied. This resolves the long-delayed condition; a further US$3m is due after 1 million barrels are produced.
16 Dec 2010other● Neutral
FAR publishes its Security Trading Policy to comply with an ASX listing rule taking effect 1 January 2011. Governance document covering insider trading and trading windows for directors and staff; no new business information.
13 Dec 2010drilling progress report▲ Good
The Guinea Bissau data acquisition (1,200 sq km gravity, 1,640 sq km 3D seismic) is complete, with encouraging early results. Processing continues into 2011 and, subject to results, could lead to up to 2 wells on FAR's 15% licences.
8 Dec 2010other● Neutral
Announces the record date (23 December 2010) and payment of $0.016875 per note, at 15% a year, for the December quarter on FAR's convertible notes. Routine administrative notice.
30 Nov 2010regulatory community update● Neutral
Two FAR directors met Senegal's new Energy Minister about the second renewal of its Senegal licences, which began 23 November 2010. Ministry changes have delayed the required Presidential Decree; FAR was assured it would be issued in due course. Still pending.
26 Nov 2010capital raising announcement● Neutral
FAR issues the second and final 35 million placement shares at 5.8 cents, completing the 500 million-share placement announced 29 October 2010. Administrative notice allowing the shares to be on-sold.
26 Nov 2010capital raising announcement● Neutral
The oversubscribed share purchase plan is allotted: 86,206,680 shares at 5.8 cents, with each application scaled back pro rata (a $1,000 application received 9,720 shares). This completes the $34m raising.
What it means for a shareholder
86.2m new shares at A$0.058 to raise about A$5.0m. That's 15% dilution: every existing holder's slice gets 15% smaller. If you held A$1,000 of shares (17,241 at the issue price), your slice goes from 0.00345% to 0.00294% of the company. To keep it you'd need 2,973 more shares - about A$172 at the issue price.
Create a free account to see this worked out for your own holding.