22 thoughts on “An Open Letter to the Board of FAR Limited

  1. Thanks for a very professionally documented submission. After 15 years of frustration with this co. was about to sell today, but you now have my full support fro 68,000 shares.
    Bob

  2. They’re making the case for more drilling…

    https://far.live.irmau.com/irm/PDF/43084529-473a-493c-a9ec-3ffff5a3360d/Gambiaprojectupdate

    “Following the drilling of the Bambo wells, FAR, as Operator of the Joint Venture, is revising the work to be undertaken in 2022 and accordingly, the budget for the works. The current, Joint Venture approved 2022 budget is US$9.56 million (50% to the account of FAR and 50% to co-venturer, Petronas) and FAR expects to reduce this by approximately 40% to US$5.7 million for the 2022 year. This will require review and voting for the amended work program and budget by the Joint Venture which is scheduled for March. Petronas are supportive of reducing the 2022 budgeted expenditure.”

    • yes, they are doubling down on drilling. obviously this will not stand. the amount net to FAR is $2.8mm as it currently stands (for the full year); I imagine some portion of this is already in the process of being spent (but I did budget for $2mm of exploration leakage in my numbers).

      At the worst case I would aim/expect for the board to be spilled by the AGM given this attitude. Will keep you all posted.

  3. Is it worthwhile others writing letters of support yet? Or wait to receive managements response first? I currently own a similar amount to you…

    • that is an excellent suggestion. as per HDG, i don’t think there is any downside to adding more voices to the chorus. I would encourage anyone who does wish to write, to do so, echoing perhaps the broad proposal I outlined (end all drilling; large capital return program through accretive tender; board renewal; negotiation for exit of drilling licences w/ Petronas and early exit of earnout from Woodside; etc).

  4. as an update – in the single day since this has gone out, about 5.7% of the register has already reached out to me to confirm they are broadly in agreement with my agenda for the company. that is a pretty large number in the context of this register and is quite a strong sign we have good momentum here.

    as time allows i will continue to spread the word (podcasts, etc) in the coming days and weeks.

  5. Pingback: Position-level commentary on a number of names |

Leave a Reply

Your email address will not be published.