Past year: ▼ 22%(28.0c – 62.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
12 Dec 2019investor presentation● Neutral
Presentation backing the equity raising. It restates Sangomar's up to 100,000 bpd, first oil early 2023, US$22/bbl breakeven and US$540M unlevered NPV10 (Phase 1+2). FID is targeted for end 2019, subject to the plan, the raising and binding debt terms. Mostly repeats the raising announcement.
12 Dec 2019capital raising announcement● NeutralMajor
FAR completed a conditional A$146M placement at A$0.0425 a share (21.3% below last close), plus a share purchase plan of up to A$30M, to fund its Sangomar capex. It needs a 16 January 2020 shareholder vote and a credit-approved US$350M senior debt term sheet by 31 December.
3 Dec 2019regulatory community update▲ GoodMajor
The final Sangomar (formerly SNE) Development and Exploitation Plan was submitted to the Senegal government on 2 December 2019, covering 645mmboe (485mmbbl oil, 160mmboe gas). This completes the plan resubmission; approval and FID are still pending.
14 Nov 2019debt financing▲ GoodMajor
FAR will pursue a bank loan for SNE and has appointed Macquarie to arrange up to US$350M over 7 years, at under 10% all-in interest, secured on its 13.67% SNE interest with a FAR parent guarantee. Not committed: credit approvals are targeted by end 2019. This picks the bank-debt route from earlier options.
30 Oct 2019resource reserve update▲ GoodMajor
FAR releases SNE development economics: net production 13,670 bbl/d, unlevered IRR above 30%. The FPSO is now purchased rather than leased, so more of the capex will likely be debt funded. Government approval and FID are now expected in December 2019, first oil late 2022.
24 Oct 2019resource reserve update▲ GoodMajor
After studying Samo-1 data, FAR assesses Gambian prospective resources at 1.2 billion barrels (best estimate, unrisked, gross), 621 million net to FAR. That is up from the 938mmbbl earlier figure, which had been 375 net. The Soloo, Bambo, Jobo and Malo prospects are still unproven; a 2020 well is planned.
15 Oct 2019director officer appointment● Neutral
Dr Julian Fowles, a former senior Oil Search executive with 30 years' industry experience, joins the FAR board as a non-executive director from 15 October 2019. He also sits on the board of Central Petroleum.
1 Oct 2019farm in farm out completion▲ GoodMajor
New Gambian A2/A5 licences issued, lifting FAR to 50% (from 40%) and keeping it operator, with PETRONAS at 50%. This resolves the licence extension question. Terms: three-year initial period, one well within two years, 450km2 3D seismic, US$2.25M net signature bonus.
11 Sept 2019investor presentation● Neutral
RIU Good Oil presentation repeats known points: SNE FID targeted Q4 2019, first oil 2022, 2020 drilling in Gambia and Guinea-Bissau. Quotes cash of A$51M at 30 June and market cap of A$400M. No new announcements.
3 Sept 2019director officer appointment● NeutralMajor
Tim Woodall, a non-executive director since August 2017 who had advised on SNE financing under a special arrangement, became Executive Director, Commercial from 1 September 2019. He is paid $625,000 a year including super and takes charge of SNE financing and business development.
29 Aug 2019half year report● Neutral
Half-year accounts to 30 June 2019, now reported in US dollars. The excerpt provided shows only contents and boilerplate, with no figures, so no results can be stated here.
6 Aug 2019farm in farm out agreement▲ GoodMajor
CNOOC will take 55.55% of Svenska's Guinea-Bissau licences, converting to 50% on a commercial discovery. FAR keeps its 21.42%. Drilling of the Greater Atum prospect (471mmbbls best estimate, gross) is targeted Q1 2020; closing expected Q3 2019 subject to government approval.
19 June 2019other● Neutral
ASX paused trading in FAR shares pending a further announcement. No reason is given in the notice itself.
19 June 2019price query● Neutral
FAR responded to a newspaper article, saying there is no funding strategy update yet. A sale of its Senegal working interest is only one option being considered alongside other financing; the market will be updated once arrangements are finalised.
30 May 2019investor presentation● Neutral
AGM presentation: SNE Phase 1 capex about US$3bn (FAR net about US$411M), targeting 50% project financing. Options for FAR's remainder include partial sell-down, mezzanine finance or a bond. Gambia next licence phase from 1 July requires one well; drilling is targeted for 2020.
23 May 2019investor presentation● Neutral
Africa E&P Summit presentation reviews FAR's history from the 2014 SNE discovery and its regional strategy. Says the first Guinea-Bissau exploration well is planned for 2020 and the CNOOC AMI expired at end 2018. Mostly repeats known facts.
8 May 2019price query● Neutral
Replying to an ASX price query after a newspaper article, FAR said it has not appointed RBC to sell its Senegal interest but is investigating financing options, including a possible sell-down. It also noted the Woodside arbitration hearings are set for July 2019.
2 May 2019capital raising announcement● NeutralMajor
FAR raised about A$45M through a placement of 818.9M shares at 5.5 cents, a 1.8% discount to the last close. Funds go to its SNE share, the proposed 2020 drilling and Australian seismic. Shares on issue rise to about 6.28bn, so existing holders are diluted.
What it means for a shareholder
819m new shares at A$0.055 to raise about A$45.0m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (18,182 at the issue price), your slice goes from 0.000333% to 0.000289% of the company. To keep it you'd need 2,726 more shares - about A$150 at the issue price.
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14 Mar 2019annual report● Neutral
2018 annual report: year-end cash A$27.8M, no debt. Restates SNE progress and says final Senegal ministerial approval is expected later in 2019, with the SNE PSC extended 10 months to 4 Dec 2019. Director Tim Woodall is seconded to the project financing work.
14 Mar 2019admin correction● Neutral
Appendix 4G and corporate governance statement lodged with the annual report, pointing to the statement on FAR's website. Administrative filing with no new company information.
4 Mar 2019investor presentation● Neutral
March investor presentation puts market cap at A$328M, well below the A$600M of September 2018, with cash about A$30M. Repeats SNE plan (FID now H2 2019, first oil 2022). Gives Gambia prospects (Bambo, Soloo, Malo) totalling 938mmbbl best estimate.
25 Feb 2019contract award▲ Good
The Senegal joint venture awarded MODEC the FEED contract for the SNE FPSO, continuing the FEED begun in December. Phase 1 still targets about 230mmbbl from 11 producers, 10 water injectors and 2 gas injectors, first oil 2022, FID targeted 2019.
24 Jan 2019drilling result▲ Good
The Davros Extension 3D seismic survey over FAR's 100%-owned WA-458-P permit finished in mid-January, as planned with CGG. Final processed data is expected in H2 2019; FAR then intends to farm down its interest and seek a drilling partner.
17 Dec 2018material agreement▲ GoodMajor
FEED has begun for SNE Phase 1, aimed at FID in 2019, and project financing has started. Phase 1 targets about 230mmbbl from 11 producers, 10 water injectors and 2 gas injectors, with a ~90,000 bbl/day FPSO and first oil in 2022.
9 Nov 2018drilling result▼ BadMajor
Samo-1 reached 3,240m and found the main targets water-bearing, a dry hole against the 825mmbbl prospect. Oil shows suggest an active charge. The Gambian licence was extended six months to June 2019 to evaluate results and plan further drilling.
25 Oct 2018material agreement▲ GoodMajor
The SNE Development and Exploitation Plan was submitted to Senegal's government, as flagged earlier. It plans about 500mmbbl developed in phases, with plateau 100,000 bopd, first oil in 2022 and FID in 2019. FPSO tenders are under evaluation.
23 Oct 2018drilling spud● NeutralMajor
Samo-1 was spudded in about 1,000m of water, with a planned depth of about 3,100m, testing the 825mmbbl prospect. It is the first offshore Gambian well in 40 years; FAR is operator with 40% and said it would update the market at key milestones.
13 Sept 2018investor presentation● Neutral
RIU Good Oil conference presentation: market cap A$600M, A$19M received from PETRONAS on 10 September. Repeats Samo-1 October spud, 825mmbbl best estimate, and SNE first oil 2022 and first gas 2024. No new information.
5 Sept 2018investor presentation● Neutral
September investor presentation: market cap A$655M, cash A$28.9M plus about A$20M due from PETRONAS. Samo-1 spud confirmed for October, results by year end. Introduces the Soloo prospect (73% chance of success for oil in the lower interval). Otherwise repeats known facts.
30 Aug 2018half year report● Neutral
Half-year to 30 June 2018: loss of A$12.1M versus A$22.3M a year earlier, with exploration expense of A$12.0M. Cash fell to A$28.9M from A$49.9M at December 2017. No debt. Mainly restates known activities.
