16 Apr 2009asset acquisition disposition▲ Good
The sale of the 5% Beibu Gulf interest completed and the first US$2m was received. The remaining US$6m of the US$8m price is contingent on development plan approval and 1 million barrels produced.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
1 Apr 2009asset acquisition disposition▲ GoodMajor
FAR agrees to sell its 5% Beibu Gulf Block 22/12 interest to South Sea Oil (Majuko Group) for US$8m: US$2m within 14 days, US$3m on development plan approval, US$3m after 1 million barrels produced. This resolves the December 2008 decision to sell.
30 Mar 2009annual report● Neutral
2008 annual report. The chairman calls 2008 the most turbulent year in FAR's history, points to the Shell Senegal deal, and says Beibu Gulf could reach first oil by early 2011. A Beibu Gulf overall development plan is expected by mid 2009.
26 Mar 2009capital raising announcement▲ GoodMajor
FAR reached an in-principle agreement with Hartleys to raise up to $3.5 million by placing up to 70 million shares at 5 cents, for working capital. The announcement followed the Shell Senegal agreement and lifted a trading halt.
What it means for a shareholder
70.0m new shares at A$0.050 to raise about A$3.5m. That's 71% dilution: every existing holder's slice gets 71% smaller. If you held A$1,000 of shares (20,000 at the issue price), your slice goes from 0.0693% to 0.0202% of the company. To keep it you'd need 48,527 more shares - about A$2,426 at the issue price.
Create a free account to see this worked out for your own holding.
25 Mar 2009farm in farm out agreement▲ GoodMajor
FAR signs a conditional Senegal deal with Shell: Shell funds a seabed electromagnetic survey and may then take 70%, carrying FAR through a well up to US$65m and leaving FAR 20%. FAR recoups about US$3.4m of past costs regardless. This resolves the farm-in search.
11 Mar 2009dividend declaration● Neutral
Routine notice of interest on the new 15% convertible notes for 10 February to 31 March 2009: $0.0092466 per note, paid 31 March, record date 23 March.
26 Feb 2009capital raising announcement● Neutral
FAR confirms the 4,500 convertible notes offered under the 11 February prospectus were allotted and the offer closed fully subscribed. Administrative; the amount is negligible.
12 Feb 2009other● Neutral
Execution copy of the convertible note trust deed with Australian Executor Trustees; the scanned text is largely unreadable signature pages and carries no new information.
12 Feb 2009capital raising announcement● Neutral
FAR confirms allotting 6,633,533 convertible notes, completing the December institutional placement (about $2.99m at $0.45). One holder, HSBC Custody Nominees, holds 83.75% of the notes. Trust deed to be lodged separately.
11 Feb 2009capital raising announcement● Neutral
Prospectus for a small top-up of 4,500 convertible notes at $0.45 each (about $2,025 in total). It follows the December institutional placement, approved by shareholders 23 January, in which 6,633,533 notes raised $2,985,090 before costs.
29 Jan 2009quarterly activities report● Neutral
December quarter report: Petrosen approved FAR lifting Senegal interest to 90% as operator, and a third farm-in offer from a major is under negotiation. US sales were A$676,142. Lake Long #28 ST declined by FAR; NE Waller's two wells were dry. Up to $4m+ capital raising noted.
23 Jan 2009material agreement▲ GoodMajor
Petrosen formally approves FAR increasing its Senegal interest to 90% and becoming operator. A third written farm-in offer, from a major, has been received and negotiations continue. FAR still seeks a free carry through the first exploration well.
14 Jan 2009dividend declaration● Neutral
Notice of the final interest payment on the old convertible notes: $0.0059452 per note, paid 31 January 2009 for January. Quotation of the notes ceases 23 January 2009 ahead of maturity.
8 Jan 2009security holder rights change● Neutral
Letter to holders of the existing convertible notes maturing 31 January 2009: convert each into 5 shares at an effective 14c or take $0.70 cash repayment. Shares were then trading at 3.1c, below the 14c conversion price.
16 Dec 2008dividend declaration● Neutral
Routine notice of the quarterly interest payment on the existing convertible notes: $0.0175 per note at 10% per annum, paid 31 December 2008 for 1 October to 31 December.
16 Dec 2008capital raising announcement● NeutralMajor
FAR agrees in principle to raise up to $3.5m via convertible notes (convert at 4.5c, 15% coupon, due 31 Jan 2012) plus up to $750k placement of 28.85m shares at 2.6c, both subject to shareholder approval. It will also pursue a sale of its Beibu Gulf (China) interest and says Petrosen has no objection to its 90% Senegal stake.
8 Dec 2008drilling result▼ BadMajor
Pitchford #2 is also a failure: the Yegua and Cockfield appear wet, the Frio is marginal, and the well will be plugged and abandoned. Both shallow NE Waller wells are now dry. FAR (34%) still plans to farm out the deeper Wilcox prospects.
2 Dec 2008drilling progress report● Neutral
Pitchford #2 spudded 28 November and is drilling ahead at 3,048 ft toward 7,100 ft. FAR (34%) intends to seek farm-in partners for the Wilcox and deeper prospects, which it calls the main thrust of the NE Waller program.
25 Nov 2008material agreement▲ GoodMajor
Senegal's Energy Minister granted a one-year extension of the licence phase, resolving the open extension request. FAR intends, subject to Petrosen approval, to lift its interest from 30% to 90% and take over as operator. Two farm-in offers are held, with a third from a major pending.
18 Nov 2008drilling result▼ BadMajor
Pitchford #1 at NE Waller is a dry hole: logs showed no hydrocarbons and it will be plugged and abandoned. It serves as 3D seismic calibration for the remaining Frio prospects, whose future drilling is to be reviewed. Pitchford #2 rig due this weekend. FAR holds 34%.
12 Nov 2008drilling progress report● Neutral
Pitchford #1 started drilling on Monday and casing is set at 475 ft. Logging is likely over the weekend. Pitchford #2 is still expected to start within ten days. FAR holds 34%.
7 Nov 2008drilling spud● Neutral
The NE Waller Pitchford #1 rig arrives 7 November, with drilling to start immediately. It is a 4,500 ft Frio test on a turnkey basis and targets total depth by 11 November. Pitchford #2 (7,100 ft Yegua) to follow within ten days. FAR holds 34%.
4 Nov 2008well test result● Neutral
Partner Emerald re-releases the 4 November Stokes Bay-1 result: testing complete, no definitive Nullara formation fluids, joint venture to consider next steps. Nothing new for FAR shareholders.
4 Nov 2008well test result● Neutral
Partner Pancontinental re-releases the 4 November Stokes Bay-1 result: testing completed with no definitive formation fluids recovered. Nothing new for FAR shareholders.
4 Nov 2008well test result▼ Bad
FAR's copy of the 4 November update: Stokes Bay-1 testing is complete, with 190 more barrels of drilling fluid recovered and no definitive formation fluids from the Nullara. The joint venture will decide next steps. FAR holds 8%.
4 Nov 2008well test result▼ BadMajor
Operator Buru reports Stokes Bay-1 testing is finished: only 190 more barrels of drilling fluid recovered, no definitive Nullara formation fluids, crew demobilised. Other methods must be evaluated. A disappointing result for FAR (8%), though the well is not yet written off.
4 Nov 2008well test result● Neutral
Partner Empire re-releases the operator's 4 November Stokes Bay-1 result: no definitive formation fluids recovered, crew gone, other methods to be evaluated. Nothing new for FAR (8%) shareholders.
31 Oct 2008capital raising announcement● Neutral
FAR issued the final 11,250,000 shares at 8 cents under the July placement, completing the roughly A$4m raise. Administrative notice; no new money beyond what was announced.
31 Oct 2008quarterly activities report● Neutral
September quarter: US oil and gas sales were $727,194. Lake Long #28 ST sidetrack slips to Q1 2009. Senegal licence extension was sought to allow farm-in offers to be considered, and the Schwing #2 lower Marg Tex zone was deemed non-commercial.
21 Oct 2008drilling progress report● Neutral
Empire reports the crew is on site at Stokes Bay-1 and has begun fresh water circulation and swabbing while awaiting the nitrogen unit. It restates earlier mud-gas indications. No formation fluid has been recovered yet.