Past year: ▼ 22%(28.0c – 62.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
16 July 2020quarterly activities report▼ Bad
June quarter: cash US$63.25M. FAR is in default on Sangomar cash calls, its JV voting rights are suspended, and it continues a sale process. Atum-1X in Guinea-Bissau is in permanent suspension; Kenya L6 surrender notice issued.
26 June 2020joint venture update● Neutral
Pancontinental agreed to pay US$150,000 as full settlement of Kenya L6 cash calls, against US$567,146 claimed. The parties will then sign the surrender and termination agreement. Resolves the long-running Pancontinental default dispute.
25 June 2020material agreement● Neutral
FAR signed new joint operating agreements with PETRONAS for Gambia A2/A5, effective 1 October 2019, keeping its 50% interest and operatorship. It is seeking a farm-out partner before drilling restarts. Bambo well preparations are suspended due to COVID-19.
24 June 2020debt default or forbearance▼ BadMajor
FAR did not pay its latest Sangomar cash call and was notified it is in default. It has six months to pay or forfeit its interest without compensation. FAR is still seeking to sell all or part of the stake, and cut staff and took 20% pay cuts.
27 May 2020investor presentation● Neutral
AGM presentation repeats the Sangomar case, with project financials and timelines under Operator review. Shows US$80.3M cash at 31 March and operations in The Gambia suspended, with farm-out activity ongoing. No new information.
30 Apr 2020quarterly activities report▼ BadMajor
March quarter: cash US$80.3M. Debt financing failed, FAR says it cannot fund its share of the US$163M 2020 Sangomar budget alone, and has started a process to sell all or part of its Senegal interest. Gambia drilling deferred.
23 Apr 2020joint venture update● Neutral
Pancontinental disputes FAR's default notices on Kenya L6, claiming US$567,146 and saying it will defend any recovery action. It also says both parties resolved to surrender L6. Continues the long-running default thread and points to exit from Kenya.
31 Mar 2020annual report● Neutral
2019 annual report covers Sangomar's progress to development, the January 2020 exploitation award, and 641MMbbl total recoverable oil. It flags COVID-19 and the oil slump as risks to delivery and says financier discussions are materially affected. Largely repeats known information.
31 Mar 2020other● Neutral
Appendix 4G and corporate governance statement lodged alongside the annual report, confirming it is accurate as at 31 March 2020. Administrative compliance filing with no new business information.
30 Mar 2020other● Neutral
FAR and Woodside settled the ICC arbitration over the 2016 Senegal sale, each withdrawing its claims and bearing its own costs. This ends the dispute after the February ruling against FAR; no payment is mentioned.
30 Mar 2020debt default or forbearance▼ BadMajor
Lead banks said they cannot syndicate the senior Sangomar loan, and the junior and mezzanine facilities are also unlikely to complete 'for the foreseeable future'. FAR had about A$150M cash and no debt. The board began a review of strategic alternatives.
25 Mar 2020other▼ BadMajor
FAR is conserving cash (~A$150M at end February) because of COVID-19 and the oil price crash. It suspends Gambia drilling plans (well not obliged until Q3 2021) and says financier talks are 'materially compromised'. Sangomar costs and timeline are under review.
21 Feb 2020investor presentation● Neutral
Presentation restates the Sangomar Phase 1 case: FID taken January 2020, 231MMbbl gross 2P (28MMbbl net), first oil early 2023, US$22/bbl break-even and NPV10 US$650M. Cash shown as A$168M. Repeats known facts; no new result.
14 Feb 2020resource reserve update▼ BadMajor
The ICC tribunal ruled that the Senegal joint operating agreement gave FAR no pre-emption right over the 2016 sale of Woodside Energy Senegal BV (formerly ConocoPhillips Senegal BV), the holder of the 35% interest. FAR said it was analysing the lengthy award and evaluating its position.
14 Feb 2020regulatory community update▼ Bad
Woodside confirms the tribunal found FAR had no pre-emption right over its 2016 Senegal entry and rejected FAR's other claims. Parties must give views on next procedural steps within 45 days. Duplicates FAR's own announcement.
12 Feb 2020other● Neutral
10,293,000 unlisted performance rights lapsed under the incentive plan. FAR now has 9,978,830,197 ordinary shares and 9,353,000 performance rights outstanding. Administrative.
31 Jan 2020quarterly activities report▲ Good
December quarter: cash US$13.75M. Sangomar plan submitted, then approved, with FID and notices to proceed after quarter-end. Placement and SPP raised over A$157M in January. Gambia 3D seismic began 16 January, and drilling services are contracted for a 2020 well.
22 Jan 2020material agreement▲ GoodMajor
FAR signed a binding MoU with Glencore to market all its Sangomar crude, expected for 7 years after first oil (minimum 20M barrels) while Glencore remains a lender. Development drilling is planned from end Q1 2021. The ICC approved the draft arbitration award.
21 Jan 2020director officer appointment● Neutral
Elisha Larkin becomes Company Secretary from 21 January 2020. Peter Thiessen retires from that role but stays as CFO.
20 Jan 2020resource reserve update▲ GoodMajor
FAR took FID on Sangomar Phase 1 and secured an underwritten US$300M senior loan (Macquarie, BNP Paribas, Glencore; 7 years, LIBOR+7.75%). It books 28MMbbl 2P net reserves (231MMbbl gross). Shareholders approved the placement. Junior debt still to be chosen.
17 Jan 2020capital raising announcement● Neutral
The share purchase plan closed with applications of A$11.18M, all accepted in full. FAR expects to issue 263,149,039 shares at 4.25c each; existing holders could apply for up to A$30,000 each.
What it means for a shareholder
263m new shares at A$0.0425 to raise about A$11.2m. That's 4.0% dilution: every existing holder's slice gets 4.0% smaller. If you held A$1,000 of shares (23,529 at the issue price), your slice goes from 0.000375% to 0.00036% of the company. To keep it you'd need 986 more shares - about A$42 at the issue price.
Create a free account to see this worked out for your own holding.
17 Jan 2020admin correction● Neutral
Placement settlement moved to 23 January 2020 and allotment to 24 January, a few days later than first scheduled. Timetable change only.
15 Jan 2020debt financing● Neutral
FAR has credit-approved terms for US$200M of its senior reserve-based loan and is negotiating up to US$300M. Progress, but still short of the binding facility needed for the placement.
10 Jan 2020contract award▲ Good
Woodside says the joint venture approved Sangomar Phase 1 and entered execution, buying the FPSO from MODEC and issuing full notices to proceed to Subsea 7/OneSubsea and Diamond Offshore. Phase 1 targets 231MMbbl (2P gross), first oil early 2023.
9 Jan 2020regulatory community update▲ GoodMajor
Senegal approved the Sangomar Development and Exploitation Plan and granted the Exploitation Authorisation, with first oil targeted early 2023. This is the government approval FAR had awaited. Execution still needs the Host Government Agreement and key contracts.
9 Jan 2020regulatory community update▲ Good
Woodside, the operator, reports Senegal approved the RSSD Exploitation Plan and granted the Exploitation Authorisation for Sangomar. Execution still needs the Host Government Agreement and key contracts. First oil targeted early 2023. Resolves the pending government approval thread.
24 Dec 2019debt financing● NeutralMajor
FAR's board backed taking FID on 19 December, conditional on binding senior debt terms and the operator's FID. Senior debt talks reached a US$300M initial limit (down from US$350M), with two banks credit-approved and a third due the week of 6 January.
16 Dec 2019capital raising announcement● Neutral
Chairman's letter accompanying the meeting notice and SPP. It says funding is a mix of equity and bank debt for FAR's US$492M share of capex to first oil in early 2023, and that directors will take up their full SPP entitlements. Largest shareholder joined the placement.
16 Dec 2019regulatory community update● Neutral
The ICC has received the tribunal's draft award in FAR's pre-emption arbitration against Woodside. FAR does not expect the final award until January or February 2020, later than the end-2019 ruling previously expected.
16 Dec 2019capital raising announcement● Neutral
Share Purchase Plan booklet opens 16 December: eligible Australian and New Zealand holders can buy up to A$30,000 each at 4.25c, a 12.0% discount to the 5-day VWAP, closing 14 January 2020. Offer terms only, no new information beyond the 12 December raising.
