21 Oct 2008drilling progress report● Neutral
Partner Pancontinental re-releases the 21 October Stokes Bay-1 update: swabbing under way, nitrogen unit awaited, no formation fluids yet. Nothing new for FAR shareholders.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
21 Oct 2008drilling progress report● Neutral
FAR's copy of the 21 October update: Stokes Bay-1 testing crew is on site, swabbing has started, and the nitrogen unit is awaited. No formation fluids recovered to date. FAR holds 8%.
21 Oct 2008drilling progress report● Neutral
Partner Emerald re-releases the 21 October Stokes Bay-1 update: testing crew on site, nitrogen unit being mobilised, no formation fluid yet recovered from the Nullara. Nothing new for FAR (8%) shareholders.
7 Oct 2008drilling progress report● Neutral
Partner Emerald re-releases the 7 October Stokes Bay-1 update: nitrogen replaces surfactant, testing expected in October. Nothing new for FAR (8%) shareholders.
7 Oct 2008drilling progress report● Neutral
FAR's copy of the 7 October update: Stokes Bay-1 road works are being finished, nitrogen replaces the surfactant plan, and testing is expected in October. No formation fluids recovered so far.
7 Oct 2008drilling progress report● Neutral
Stokes Bay-1 (FAR 8%): crews are mobilising to finish road works. Nitrogen replaces the foaming-water plan to lift heavy mud, with testing now expected in October. No formation fluid has yet been recovered from the Nullara.
25 Sept 2008joint venture update▲ GoodMajor
Two written farm-in offers for a Senegal well have arrived, with a third pending. Partners (FAR 30%) have asked for the licence phase to be extended one year. FAR still seeks a free carry. NE Waller rig due 15 October; Stokes Bay testing now October.
3 Sept 2008well test result● Neutral
Operator Buru (ARC's parent) says all Stokes Bay-1 partners agreed to more testing from late September, starting with foaming fresh water to induce flow. Closure could be up to 17 km2. No test result yet. FAR holds 8%.
3 Sept 2008well test result● Neutral
Partner Pancontinental (10%) re-releases the same Stokes Bay-1 testing announcement: further testing from late September. No new information for FAR shareholders.
3 Sept 2008well test result● Neutral
Partner Empire re-releases the agreed Stokes Bay-1 testing plan, starting late September, and puts the potential closure at up to 17 km2. Nothing new for FAR (8%) shareholders.
3 Sept 2008well test result● Neutral
Partner Emerald (12.75%) re-releases the agreed Stokes Bay-1 testing plan. No new information for FAR shareholders.
3 Sept 2008well test result● Neutral
FAR issues its own copy of the agreed Stokes Bay-1 testing plan: all partners approved further testing from late September to find out what fluid the Nullara reef holds. FAR holds 8%. It repeats the earlier partner releases, with no result yet.
3 Sept 2008admin correction● Neutral
Empire announced that all parties to the EP 104 and R1 joint venture agreed to further testing of Stokes Bay-1, planned to start in late September 2008. The first step is circulating fresh water with surfactant to induce flow from the Nullara reef.
2 Sept 2008drilling scheduled▲ Good
NE Waller (FAR 34%): a rig is contracted for the first shallow Frio well, Pitchford #1, to spud this month at an estimated US$250,000 turnkey, below earlier budget. A rig for Pitchford #2, a 7,100 ft Yegua test, is to be chosen in early September.
1 Sept 2008half year report▼ Bad
Half-year to 30 June 2008: loss of $3,547,015 (versus $1,804,253 a year earlier). North American oil and gas revenue rose 70% to $1,437,686, helped by Lake Long and higher prices. Text is truncated.
5 Aug 2008capital raising announcement▲ Good
The Share Purchase Plan closed with applications for 13,037,500 shares, over $1 million. Together with the $4 million placement at 8 cents, FAR says this funds its work program. Shares are expected to be allotted on 11 August.
4 Aug 2008production update▲ GoodMajor
Production started on 1 August from the 5500 ft sand in Lake Long #6 (FAR 31.375%), flowing at 1.1 million cubic feet of gas a day while still cleaning up. This follows last month's completion work and is expected to reach about 1.5 million cubic feet a day.
31 July 2008quarterly activities report● Neutral
June quarter report: US oil and gas sales rose 14.3% to $792,851, and Lake Long work is set to lift second-half sales. Senegal marketing continues, two NE Waller wells are being planned, and Stokes Bay-1 evaluation is starting. Text is truncated.
25 July 2008capital raising announcement● Neutral
FAR issued 38,750,000 shares at 8 cents on 25 July 2008, the first tranche of the placement announced 11 July. A further 11,250,000 shares will follow shortly, which would complete the 50 million share placement.
What it means for a shareholder
38.8m new shares at A$0.080 to raise about A$3.1m. That's 84% dilution: every existing holder's slice gets 84% smaller. If you held A$1,000 of shares (12,500 at the issue price), your slice goes from 0.167% to 0.027% of the company. To keep it you'd need 64,583 more shares - about A$5,167 at the issue price.
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24 July 2008production update▲ Good
A rig is completing the 5500 ft sand in the Lake Long #6 well (FAR 31.375%), which the operator estimates could produce 1-2 million cubic feet of gas a day. A further Lake Long well, #28 ST, is planned for September at about US$1.8 million dry-hole cost.
22 July 2008resource reserve update▲ Good
Hunt's technical studies show multiple fan systems offshore Senegal (FAR 30%), with mean oil in place of 183 million barrels for a single fan and single reservoir. These add to the billion-barrel shelf-edge closure as drill targets. The farmout continues, and FAR still expects a free carry through one well.
17 July 2008capital raising announcement● Neutral
FAR mailed the Share Purchase Plan offer: eligible holders at 11 July can buy up to $5,000 of shares at 8 cents. The letter repeats the work program: Stokes Bay-1 testing, NE Waller, Lake Long, Senegal and China. The first NE Waller well is now expected in August.
11 July 2008capital raising announcement● NeutralMajor
FAR resolved to raise up to $4 million through a placement of up to 50 million shares at 8 cents, with Hartleys as lead manager. It also offered eligible shareholders a Shareholder Purchase Plan of up to $5,000 each at the same price, to fund its work programme.
What it means for a shareholder
50.0m new shares at A$0.080 to raise about A$4.0m. That's 87% dilution: every existing holder's slice gets 87% smaller. If you held A$1,000 of shares (12,500 at the issue price), your slice goes from 0.167% to 0.0217% of the company. To keep it you'd need 83,333 more shares - about A$6,667 at the issue price.
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9 July 2008drilling scheduled▲ Good
FAR says Stokes Bay-1 testing has resumed, with potential of over 200 BCF gas or 10 million barrels of oil (FAR 8%). The first NE Waller well (FAR 34%) is expected in July or August, with a rig still being sourced. Lake Long and Senegal are also covered.
7 July 2008well test result● Neutral
Empire Oil & Gas (14.8% partner) passes on ARC's Stokes Bay-1 inspection results with a cover letter. It is the same content: 1,200 psi and a brief gas flow. No new information.
7 July 2008well test result● Neutral
Pancontinental, a Stokes Bay-1 partner with 10%, re-releases ARC's well inspection results. Wellhead pressure was 1,200 psi and gas flowed briefly. No new information for FAR shareholders.
7 July 2008well test result▲ Good
Operator ARC inspected Stokes Bay-1: wellhead pressure was 1,200 psi and the well flowed gas for about six minutes, then slugged mud and gas. ARC calls this very encouraging, the first gas seen since testing began. A definitive test design is still to be settled.
7 July 2008well test result● Neutral
Emerald Oil & Gas (12.75% partner) repeats ARC's Stokes Bay-1 inspection results. It notes that until this gas flow, no formation fluid had been recovered from the Nullara, only drilling fluids. No new information for FAR.
7 July 2008well test result▲ Good
FAR re-releases the operator's Stokes Bay-1 inspection results. Wellhead pressure was 1,200 psi and gas flowed for about six minutes, which is interpreted as very encouraging. A definitive test method is still being worked out. FAR holds 8%.
18 June 2008well test result▼ Bad
This is Amadeus's release, not FAR's. Testing of Schwing #2's 12,500 ft oil zone (FAR 5%) found 39-degree oil but not at commercial rates, due to very limited permeability. The well will be recompleted in Lower Marg Tex sands at 11,800-11,900 ft.