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fair point. We get to know his approach to it and he is clearly surrounding himself with experts for that sector.

- Fast has 2.8p/share worth of net cash. - Even though the oil licences are admittedly worth nothing, can you keep the 3d seismic and sell it for a few millions to anyone. Lets assume not for now but might be a cheap option at some point. - Cathal Friel seems comfortable with paying over 40% premium above net cash to get effective control of the firm. - regarding biopharma...yes it is a hot sector but in truth, we have no clue what this new business will really be about. At this stage, it is a bit unwise to get excited and put any valuations on this biopharma interest. So I think at this stage, fair value for the SP is in that 2.8-4p range. anything below that is wrong (since you can gather enough interest to vote against CF 's plan and force a wind-down at 2.8p). Anything above 4p is putting a lot of faith on CF's skills...which we know he has. (Cove Energy was a massive success).

been looking at this company for a while. A few thoughts here: - net cash is approx 53p/share by now. So clearly, the shares trade at a significant discount (45% discount). - with hindsight, the Llanos sale was very good. - quite good to see them appropriately writing down to zero one of their 2 remaning licences (Bocachico). - the other licence (Bolivar) is still being valued at USD21mln (as of end-2014) using Brent oil at $57.3/bbl and assuming 3% annual price increase. We are now below $47/bbl with the fwd oil prices at 10y lows. So one can ask if this remaining licence is worth anything at the next impairment exercise. In any case, that's not a cash event so not a big deal really. - in terms of cashburn/expenses. It sounds like the 2 licences might still costs a few hundred thousands a year due to compliance/environmental commitments. They said they stopped all drilling costs but I also hope they stop producing, because at those levels, they produce at a loss. - Admin costs are high for such a small company. last year wages totaled over $ 3mln/year with CEO and chairman both taking over $400k/year. I think that's way too much. They implied they are reducing staff thanks to the Llanos sale and cash conservation discipline. So overall, I speculate that cash burn from operation & admin will be approx 3mln/year or USD 250k/month. - This mean End-2015 net cash/share will be around 51p/share. - By end2016, It would be 45p/share. So by all means, 30p/share offers amazing discount and cushion for useless cashburn for a sustained period of time. The major negative point is this: 62% of the company is owned by HKN/Lyford/Directors. They are one big family. Which means they have complete control of the company as long as what they do (or don't do) is legal. And this is then no surprise that the top managers pay themselves royally because no external shareholder can really challenge them. The best you can do is try to block Special resolutions by gathering 25% ownership to vote against special resolutions. Salaries and Directors renewal do not require special resolution. So to conclude, this seems to be a situation whereby the share prices in a discount for the impossibility of control (same way that people pay a premium for gaining control). I bought Fastnet at 2p (with net cash at 2.8p) a few days ago hoping for an event to monetize the cash pot. It is happening with the chairman buying more shares at 4p (33% premium to net cash) to effectively take control of the company, slash costs and use the cash for new ventures outside of O&G. with GED, i'm tempted to play the same tactic. But the ownership structure suggest you leave it to mngt to do the right thing. You can hope that the managers have indeed looked for O&G opportunities and decided it didn't make sense and would suggest paying a one/off dividend. Or you buy now, goes thru the useless cashburn and hope that by 2016, oil px recover & make the

I had a very quick glance at RMP.. was already on my radar of stocks to analyse. but I tend to avoid mcap in the few millions because the smallest mistake can wipe out the cash balance and the admin costs are a big chunk of net cash balance, especially if you want to afford being patient. I might to more research and post on relevant board.

thanks for responding mate.

hi guys... started looking at SEY for the past 48hrs. so far what i see is: - USD 100mln net cash as of Feb presentation = 29p/share - USD 5mln anuall admin cash burn = -1.5p/year - potential USD 8mln additional spend on Odewayne (not sure about timing and it is not reflected on the balance sheet because its contingent) = -2.4p - USD 22mln decommissioning costs to occur around Q12018 = -6.5p - with regards to revenues, I now assume that we make zero gross profit out of Chinguetti with current oil price. so if you assume not much happens over the next few months, lets look at End June2015: 29 - 0.8 = 28.2p net cash. End of 2015, should look like 27.5p net cash per share. and we can assume end of 2016, we pay the 8mln USD related to ODewayne and we have 23.5p net cash per share. Then end of 2017 - early18, we have 17p net cash per share. So at current prices, we assume that we see no recovery in oil prices (no more profit from Chinguetti), consistent admin cash burn at similar rates for next 3 years, decommisonn costs covered, extra 8mln spend on Odewayne covered. Thats a lot of downside priced in IMO. What can happen is that they use their cash pile to invest in new ventures. Im not a geologist but it seems to me they go where the pros go (Genel, Exxon etc...) so if we are medium-long term bullish on Oil prices, we should not mind them looking for new ventures provided they find genuine bargains (which should be doable at the moment). pls correct me if i missed obvious things here. pls try to be as objective as possible (which i know is tough when one keeps witnessing share price collapsing).

Net cash per share is 3.3p by jan2015....with CFO salary (£160k) gone, should be 2.9p by year-end. At current prices, this is a safe place to put your money if you can be patient. Carol Law has credibility in the sector and she has just proven she will protect shareholders to some extent. Remember she bought 1mln shares at 6p a few months ago.

some people are dip buying it seems. seen @Patientelephant tweet he just bought some at 2.15. cannot see it reported so might be a decent clip being delayed.

hi guys...been watching this share for a few months... i put a target entry point at 4.5p, and my spreadsheet highlighted it today. After reading the RNS, it feels like the farmout negotiations are going nowhere for the time being and with recent drop in Oil prices... doesnt look like it will get better for a while... Also, there has been a trend to close O&G businesses that do not offer imminent rewards... TrapOil, 3Legs, etc... I think the fact that they do not deny the rumours and even mention its possibility is a very clear message. so going fwd,its very likely we will trade at or slightly sub net cash price.. which is aorund 3.5p/share... so expect the range to be 3.25-3.50 for the next few weeks... It might be a free option at the above price... If they were to wind down operations without a farm out deal, can they still sell the 3d data? might be worth a few millions. But in this O7G AIM mkt, who is looking at 25-30% returns...?

I've been going through some of his current and past directorships and I cannot see Neil Lindsey buying anything near the amount he just invested in FRI, except for Polo Resources. The guy clearly saw something much more valuable at SAV than at some other directorships to accept to be its chairman (reputational risk) and put £ 125k of his money in it, which at 7% holding, is not liquid so he s in it for real. He might know more than we do... ;-) great news...

I have been adding to my FRI holding today just below 1p. The risk/reward of this share is very attractive. - at 1.5mln mcap, any FarmOut deal (even a very poor one) will be worth multiples of the current Mcap. - no placing until next year. - 15 companies including Majors in confidential discussions to consider farming in. - CEO owns 20%, postpone salary and keep participating in placings - Joint broker SP Angel (O&G expert) has a PT of 7p with unrisked NAV of 1430p ! (unrisked NAV matters for potential farmin partners) - CEO Jack Keyes is a proven explorer with past successes at Circle Oil (which he co-founded). - Large instit seller is gone (or about to sell remaining 1-2mln shares), offers great entry point. - Oman is becoming a very popular O&G exploration destination: (BP is investing Billions in their Khazzan project-Block 61, Major DNO has recently acquired Block 36 licence, adjacent to FRI's block 38). In summary, while this type of shares is very risky, there is extreme upside potential with some strong box tickers (CEO ownership, low cash burn, strong F/O discussions, no imminent placings, expected newsflows).

I posted this a while back... Net cash per share 10.75-11.00p or approx £ 2.8mln. I think a few people make the mistake when they say net cash of £4-4.5mln as in the dec2013 accts, there is a liability which is the payment to Griffin for the repurchases. The cash burn is constantly decreasing which is a good thing and is now approx £ 150k/year or 0.6p/share thanks to lower G&A costs and the investment income they get from placing their cash. So all in all, you can buy at 7p or approx 2/3rd of End2014 net cash. And still retain the potential upside of the Salmon Gums project (currently marked at 18p/share in their books as capitalised explo costs). Regarding those exploration costs which they book as assets, it is interesting to the extent that any JV (whereby SRO might forego most of the upside) might require the new partner paying back those costs (as happens from time to time when a big player decides to JV and operate a licence with a minnow). So, there is a chance scenario that they decide to let go of most of the project to get their costs back and focus on other projects with a pile of cash worth over 28p/share. Also the board seems quite keen to play their hand (being cash rich) smartly which I find encouraging.

Some more observations to make. the fundamentals and valuations are attractive. Mostly that you can buy a share covered by 1.5x net cash plus a free large challenging project (put on hold for now). However, there are a couple of things I find frustrating and that could explain the discounted price: * Directors' salaries are low and reduced but the same guys seem to charge more to SRO via their consulting firms (Mladen's Keynes company took AUD 150k of fees in 2013). So their salaries plus consultant fees (all the same people) costs about AUD 300k/year or 0.7p/share per year. Those same guys already have salaries, shares, options via their Griffin jobs/interests. If they really want to conserve cash until they sign a JV or buy new investment opportunities, they should cut those costs down to zero for the time being and the interest income would cover the Admin costs and the cash burn would be zero if not positive. * the other problem is that there is no chance of activist investing to force the board to realise sharehodler value since the company is under Bermuda Company Act whereby the board has full control over the shareholders. that is annoying because it means the board who seem to own less than 3% of SRO (especially after options expried worthless) can misallocate the cash as they wish without any potential Shareholder recourse/pressure. * Another point: Who is Genex LTD? seems to be a large Japan Electrical Power company. What's their interest in SRO now that the porject is on hold? Overall, I still think the odds are in favour of buying the shares at 7p area. Those costs i mention are not shocking or abusive but it would be welcome to see further reductions in costs unless a big deal is imminent. It seems the Directors have a decent track record and clean/legit profile so I am not over worried by the above concerns. But is worth reminding shareholders that this cash shell cannot benefit from activist investing due to its Bermuda incorporation.

OK ive done the maths myself and this is what I find: All nbers in GBP (not AUD): Net cash per share 10.75-11.00p or approx £ 2.8mln. I think a few people make the mistake when they say net cash of £4-4.5mln as in the dec2013 accts, there is a liability which is the payment to Griffin for the repurchases. The cash burn is constantly decreasing which is a good thing and is now approx £ 150k/year or 0.6p/share thanks to lower G&A costs and the investment income they get from placing their cash. So all in all, you can buy at 7p or approx 2/3rd of End2014 net cash. And still retain the potential upside of the Salmon Gums project (currently marked at 18p/share in their books as capitalised explo costs). Regarding those exploration costs which they book as assets, it is interesting to the extent that any JV (whereby SRO might forego most of the upside) might require the new partner paying back those costs (as happens from time to time when a big player decides to JV and operate a licence with a minnow). So, there is a chance scenario that they decide to let go of most of the project to get their costs back and focus on other projects with a pile of cash worth over 28p/share. Also the board seems quite keen to play their hand (being cash rich) smartly which I find encouraging. with regards to liquidity, it seems you can buy up to 125,000 shares at 7p (on the bid side!) so not an issue to buy roughly £ 10k worth of it. GLA

hi guys, what do u see as net cash per share? (post repurchases i mean). and what is current cash burn?

thanks. a few remarks i would make: - as per El1te article: why would Keyes pay himself a decent salary when the company is running out of cash? Surely he made a few millions during his Circle Oil days and should be able to work for close to zero salary since he owns 21% of the company. Is that right that he differed his salary to save cash? where is that stated? - with regards to Oman, I don't think El1te is entirely fair. He doesn't mention oil Major DNO buying the Block 36 licence less than a year ago. - Also not mentioned in El1te (otherwise good) article, is the potential strategy to hope for good results from other neighbouring explorers (DNO in Oman, Hydrocrab in Namibia). This is free derisking (albeit imperfect) and allow for potential share price rerate and then raise more cash. - On the worrying sign, I fear the annual results will highlight how little cash there is. I hope Keyes will mention some G&A cost savings measures along the results to make sure the mkt doesn't panic about an imminent placing. he could delay/cut his salary, lend his own money to the company or mention that he suspends all work on a given licence until more progress is made on a other licence farm out. - Overall I think at 2mln mcap and so little shares floating, it offers a good risk/reward but it might be that we see more pressure post results unless he announces drastic cost-cutting measures, a farm out and/or a placing at a premium. whichever way it goes, ill be adding or holding

Do we know when the results are to be released exactly? And do you guys know if there is a general presentation of FRI somewhere?

I'm slowly going thru a few of the small O&G companies owning Namibia licences and it seems FRI is the cheapest one relative to acreage size. To be fair, we do not really know if there is any economically viable oil in the ground but it is a similar situation in the other basins offshore for all the other licence holders. So once we accept that we are all equal in terms of Namibia oil success, FRI seems to be the cheapest acreage out there. Global Petroleum seems pretty cheap too (considering they have net cash above their mcap) but their licence acreage almost half the size of ours. And their salary/admin costs are much larger than ours. So long as they do not farm out some of the liucence, they are wasting significantly more cash than FRI. Pls let me know if they are other small mcap companies with large acreage in namibia.

started buying a few FRI today for the first time. all sub 2p, so risk/reward pretty good IMO. Their licence acreage is huge in highly prospective zones. and CEO owns 21% so he should be fairly sensitive to the share price when he takes meaningful corporate decisions (Farmout, placing, etc...) thks for earlier info guys. good luck

is Repsol involved in the Owambo Basin? I only see Hydrocarb and Preview Energy (and FRI) invloved there. Is that right?