FAR Limited [ASX:FAR]have recently sold a large portion of their working interest to Samo-1 Exploration for millions.
This recent deal goes hand in hand with FAR Limited’s recent capitalisation with surging oil prices.
While retaining its working interest in Senegal and other regions, FAR will maintain 40% working interest in Samo-1’s purchased interest.
The growth in shares stems from the recent oil boom, which has taken place over an extensive period of time.
FAR’s shares growing by 7% today reflects how successful their business structure has been in recent times.
How FAR has utilised the right opportunities
FAR had completed a variety of geotechnical studies, while reviewing resources that had been discovered several years ago.
This helped FAR discover key locations where they can obtain the largest quantities of resources.
As a result, they were able to turn over high productivity rates during the first year.
Management described its first quarter to be fruitful.
By analysing its sites, FAR were able to pinpoint where to maintain its interest and what to sell.
Thanks to its strong results, FAR’s future projects will have a strong financial platform to operate on.
In its quarterly activities report, FAR stated:
‘We enter this quarter with a healthy cash position of $40.38M which is ahead of forecast by A$6M, largely as a result of slowed expenditure in Senegal. We are forecasting a net spend of A$100K for the forthcoming quarter, so the mid-year cash balance is expected to be A$40.37M. This low quarterly spend is because we are expecting an inflow of A$18.1M from settlement of the PETRONAS farmin.’
FAR will continue to develop its operations while selling percentages of its working interests.
Once a timetable of their dealings is put forward, they will continue to update the market on future plans.
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