Oil and gas exploration, Far Limited (ASX: FAR) has recently published its investor presentation for March 2019. Far Limited’s top 200 shareholders own 70% of the company with substantial shareholders- Meridian Asset Management and FARJOY owning 15% and 10%, respectively.
The company is having a portfolio of exploration licences in Senegal, The Gambia and Guinea-Bissau. FAR made the world-class, SNE oil discovery off the coast of Senegal in 2014 and has since grown to be one of the largest holders of offshore acreage in the Mauritania-Senegal-Guinea-Bissau-Conakry (MSGBC) basin.
In the last three years, it has drilled 11 wells with a 100% success rate in Senegal (including 2 further discoveries). In 2014, the SNE Field was established as the world’s largest oil discovery for the year and FAR has assessed the SNE field to contain 641 million barrels (mmbbls) of oil on a 2C contingent resource basis. The SNE Field is having excellent reservoir properties with 100m oil column, average porosity of 24% and average hydrocarbon saturation of 73%.
The company is progressing towards the first oil production from SNE Field, expected to happen in 2022. In 2018, the company achieved various milestone for its SNE Development which includes, the submission of the Evaluation Report to the Government of Senegal including a Statement of Commerciality of the SNE field, the submission of the Development and Exploitation Plan to the Government of Senegal and the announcement of the first phase of FEED commencing. These are all further steps towards the Final Investment Decision (FID) targeted for 2019.
In 2018, the company made excellent progress with its African portfolio by farming out 40% of its 80% interest in the highly prospective blocks A2 and A5 in The Gambia to PETRONAS. In Kenya, the L6 permit area in the Lamu Basin covers more than 3,134km² with about one quarter onshore and the remaining offshore in water depths up to approximately 400m. The company has identified numerous prospects at L6 permit area. The total Prospective Resource in L6 is around 3bbbls or greater than 10tcf gas.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.061, up by 1.667% during the day’s trade with a market capitalisation of ~$327.69 million as on 4 March 2019 (AEST 3:44 PM). The counter opened the day at $0.060 and reached the day’s high of $0.063 and touched a day’s low of $0.060 with a daily volume of more than 3,567,237. The stock has provided a year till date return of -10.45% & also posted returns of -50.00%, -15.49% & 7.14% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.140 and touched 52 weeks low of $0.053, with an average volume of ~9,651,624.
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