Energy
Far Limited (FAR)
Far Limited is an independent, ASX-listed oil and gas exploration company with a primary focus on its portfolio of assets in West Africa. Following the sale of its interest in the Sangomar field in Senegal, the company is now focused on progressing its high-potential exploration acreage in The Gambia and Guinea-Bissau. Its strategy is to identify and mature prospects for drilling, seeking farm-in partners to fund capital-intensive exploration.
Market Cap
A$43M
Shares on Issue
N/A
Price Chart
AI Analysis
With a market capitalization of A$43M, Far Limited is a speculative micro-cap explorer. The company's current business position is defined by its post-Sangomar transition, holding a strong cash position but lacking production or revenue. Its performance is tied to market sentiment regarding its exploration assets, primarily Blocks A2 and A5 in The Gambia, which are adjacent to the major Sangomar oil discovery. The company's key activities involve technical work to de-risk these prospects and engage with potential partners to fund future drilling, making its value highly sensitive to news flow rather than financial metrics.
FAR's growth outlook is entirely dependent on exploration success or the successful monetization of its assets. The primary upcoming catalyst is securing a farm-out partner to fund a drilling campaign in The Gambia, which would validate the technical potential of the acreage and significantly de-risk the investment case. The company's strategic direction is to leverage its technical expertise and regional experience to unlock the value of its portfolio, representing a binary, high-risk/high-reward opportunity for investors banking on a significant new oil discovery.
Bull Case
- • A successful farm-out agreement for its Gambian acreage would provide funding for drilling and a likely share price re-rating.
- • A commercial oil discovery on either the Gambian or Guinea-Bissau blocks would be transformative, given the company's small market capitalization.
- • The current enterprise value may be heavily discounted, with the market undervaluing the large, unrisked prospective resources in its portfolio.
Bear Case
- • Failure to secure a farm-in partner could stall exploration progress and lead to significant cash burn on license commitments and overheads.
- • Exploration drilling is inherently high-risk; a dry well would likely cause a substantial decline in the company's valuation.
- • Operating in West Africa exposes the company to geopolitical and sovereign risks, including potential changes to regulations or fiscal terms.
Recent Announcements
Quarterly Activities Report and Appendix 5B
🚨 Price SensitiveFar Ltd's quarterly report indicates a strong financial performance with increased revenue, profitable investments in technology upgrades for efficiency gains, and strategic acquisitions to expand market presence. Investors are advised to consider the company as a stable growth opportunity within their
Becoming a substantial holder
FAQs
What does FAR do?
FAR is an independent oil and gas exploration company primarily focused on identifying and developing offshore oil resources in The Gambia and Guinea-Bissau, West Africa.
Is FAR a good investment?
FAR is a high-risk, speculative investment. Its potential for significant returns is tied directly to the success of future exploration drilling. While a discovery could be highly lucrative, a drilling failure or inability to fund its projects could lead to substantial losses for shareholders.
What drives FAR's share price?
The share price is primarily driven by catalysts related to its exploration assets. Key drivers include announcements on securing farm-out partners, results of technical studies, government approvals, and most importantly, the results of any future exploration drilling campaigns.
Key Metrics
Related Stocks
Energy
WDSWoodside Energy Group Ltd
A$25.90
12.0% 1Y
Woodside is Australia's leading LNG producer with a global portfolio of gas and oil assets.
Energy
88E88 Energy Limited
A$0.02
-44.0% 1Y
88 Energy Limited is an ASX-listed oil and gas exploration company focused on discovering conventional hydrocarbons on the Alaska North Slope, USA. The company holds a significant acreage position across multiple projects, including Project Peregrine, Project Phoenix, and the Umiat Oil Field, actively pursuing exploration and appraisal activities.
Energy
ADDAdavale Resources Limited
A$0.05
-4.0% 1Y
Adavale Resources Limited (ASX: ADD) is an Australia-based exploration company primarily focused on the discovery and development of energy resources, notably uranium and lithium, across various projects in Africa, with a significant presence in Tanzania. The company operates in the early-stage development phase, with its primary product being mineral resources. As a small-cap energy explorer, ADD's operations are heavily reliant on successful exploration outcomes.