FAR - First Australian Resources

[Watson]

Surprised no one has mentioned this stock....I bought some two weeks ago...based on their 5 oil/gas projects coming on line very soon...

One of their projects "welder Ranch" in good old texas has proven a success as yesterday they announced a significant gas discovery via Dune Energy who discovered the gas

FAR have a 10% interest ...basically they are a gas and oil exploration come production company

Shares on issue are approx 200 mill with 100 million options exp june 05

The shareprice has steadily risen from 6.3 c as as 21/1/05
currently at 11.5-12c

Definately worth a look....

P.S Please DYO research before deciding to buy ...it has gained 100% inside of 2 months ...cheers W

[bailej03]

hey watson,

I have a small holding of FAR/OA and agree, they certainly have a lot of potential.

Have a look at sharescene if you like, alot of ppl onboard there.

Basically, with 10 wells this year or in the very near future, cash in the bank (just topped up with a surprisingly well accepted placement) and options in the money for July expire, they have a lot of potential.

SGT later in the year is a potential company maker.

Anyway, if you can get onto Sharescene you will find a lot more educated opions than mine.

DYOR

Cheers

James

[Watson]

Thanks for that Bailej03....Definally a possible performer for 2005....patience is required here!
Cheers W

[Watson]

Been a while since posting on FAR.
I have been waiting for production and sales to commence at Welder Ranch and a few of their other prospects...looks like we are ready to rock.
The other factor was the share options excercisable at 7c on or before 31 july 2005 which has been and gone.

This stock has been in a downtrend since march from when it hit a high of 14.5c
It had reached a low of 7.5c on the 28 july 2005 but has just broken up through its downtrend line....the cross was at 7.8c which triggered a buy on my charts 2 days following confirmation that the downtrend line had been breached.....so here i am back in at 8c and waiting for a big move north now that cashflow is finally here.....spiked to 8.7c on tuesday b4 settling at 8.3c at the close

Closed at 8.4c yesterday and a confirmed uptrend has begun...whether it is short term or better will depend on market sentiment and company activity to deliver positive cashflow ....at least we are looking at a company who have successfully achieved producer status in the forever present energy hungry USA.....BRING IT ON BOYS

Here are the directors profiles below:

Directors

MICHAEL J EVANS

Mr Evans, aged 54, was founding Chairman of the Company and primarily responsible for its public flotation in 1985. He is a Chartered Accountant holding two business degrees and has been involved in the natural resources sector since 1981. He has considerable experience in Australian public companies particularly in relation to financing both in Australia and the United States of America.


Relevant interest in shares - 2,279,500

Relevant interest in options:

745,950 July 2005 Options
5,000,000 June 2007 Options


WARWICK R GRIGOR

Mr Grigor, aged 45, is a graduate of the Australian National University having completed degrees in law and economics. He has spent a number of years in the stockbroking sector as a senior mining analyst prior to establishing Far East Capital Limited, a specialist corporate advisory business.



Relevant interest in shares - 7,561,628

Relevant interest in options:

3,269,412 options expiring 31 July 2005
1,500,000 June 2007 Options




CHARLES L CAVNESS

Mr Cavness, aged 53, resides in Denver, Colorado, United States of America, and is an Attorney at Law admitted to practice before the Supreme Courts of the States of Texas, Alaska, and Colorado. Mr Cavness has served in the legal departments of two large American oil companies, Pennzoil Corporation and Arco. Mr Cavness has spent his entire career in the oil industry, and
consequently has experience in the US , Latin America, Europe and the Middle East.

Mr Cavness also serves as a Director of Financial Energy Management Corporation, Denver, Colorado, and of Parker County Energy and Development Company, Fort Worth, Texas.



Relevant interest in shares - 150,000

Relevant interest in options:

15,000 expiring 31 July 2005
1,000,000 June 2007 Options


P.S DO YOUR OWN RESEARCH BUT I PERSONALLY LIKE THIS ONE!!
CHEERS W

[Watson]

Nice close for FAR....solid buying today lifted shareprice to a daily high of 8.7c to finish up at the close 8.6c.....should now confirm directional movement indicators signalling a trend change.
broken downtrend IMHO

Looks good indeed.......cheers Watson

[bailej03]

Yeah finally the options are gone and the money is in the bank. I don't know what the f**k is going on though and why they haven't issued a final notice on the conversion though??

With a bit of luck we should be drilling some of these targets within the year. Eagle, SGT and maybe China or the N/West targets could be on the board.

WR fraccing should improve the flow on V2 to a point where we become cashflow positive :)

And with 9M in the bank you would expect ME to get the foot in the door on some other targets which are hopefully ready to roll.

[Watson]

Bailej03 ..an announcement came out on the 5th aug (friday) showing the conversion of options to head shares ...now stands at 301 million shares on issue....now they have 9 million in the bank and a great future....as mentioned above ...a new uptrend has begun..directional movement indicators which determine trend change are in positive territory ...ADX/ADXR values have finally moved above -DI(directional indicator) Values as follows::

+DI value 39
-DI value 15
ADX value 19
ADXR value 16

I use this tool to indicate trend direction....ive had over 70% success rate via metastock tools...for this to work more efficiently you need to wait for confirmation before buying into the change . This usually takes 3 days after the downtrend line has been breached...So FAR so good....

Another good indicator is volume. It is fairly neutral at present but could increase with the trend change At yesterdays open the S/P gapped up which suggests a runaway gap ...this usually signifies a continuation of the trend...i hope so...but im well above my entry point at 8c...lets see what happens. I would expect a move towards 9c by the end of the week unless the BEARS want to make a meal of it....lol
cheers W

[Watson]

looking good today...up from yesterdays close and looking strong on the charts....symetrical triangle breakout imminent.........apparently Fat Prophets put a BUY recommendation on FAR yesterday.......anyway looks good for a close above 9.5c to break symetrical triangle downtrend line.....here,s hoping.......cheers Watson

[Watson]

Nudging towards the magical 10c mark...currently at 9.7c....at this level it has broken above the downtrend line of the symetrical triangle formation..but too early to tell whether it can hold that position and close above .Needs more volume..if so watch it fly :D

[Watson]

similiar pattern to yesterday...........at the close yesterday at 9.4c it appeared that the stock had formed a breakaway gap based on the previous days close of 9.2...we see the same pattern emerging as per yesterdays price.......if it can close at 9.5c or better then it looks set to move up and test lext level of resistence........time will tell...:D im a patient lad...lol

[Watson]

Found the post below on another site......not sure whether it can be valued at these prices but I guess if south grosse produces as they say it will then anything is possible.....time will tell...cheers W


Quote:
"have just seen the Fat Prophets report. They have placed a value on the success of Eagle at 14.7c per share and 75.7c for South Grosse. It was recommended as a buy for all members up to 9.3c. "

[Watson]

FAR hit 10c today..looking good indeed........cheers W:D

[Watson]

Looking solid all day so far...no one willing to sell below 9.8c ...very encouraging
If the shareprice holds in the second session today and can close at 9.9c -10c It could take off tomorrow........looking forward to the coming weeks........ Cheers W

[Watson]

buyers at 10c now ...someone took out close to 1 million at 10c ....looks good for a strong close indeed..........excellent:D:D

[Watson]

4 million on the bid at 10c ...ready to explode.....another undervalued stock....time will tell, but the heavy resistance at 10.5c could disappear rapidly if a few big bites appear...cheers W

[Watson]

Finally the breakthrough i was waiting for.
A buyer took close to 2 million at 10.5c

lets see if it can hold ....im looking for 10.5c at the close.
excellent...patience and we will see 15c
cheers W

[bailej03]

Hey Watson,

Nice day for FAR today, these for sure. Just need another 2M buyer and we could be off on a bit of a run.

Hopefully Welder Ranch had been fracced and flowing at 6MMcf/d for the past week with gas at $12US over there!!:D It's cooled of a little now, but holding above $10US for the next few months should see us post a nice quarter revenue figure and god, maybe even a profit! if no drilling takes place? Not looking good for SGT atm, FP report suggesting further delays maybe into next yr for a hit at the bigger targets too. Either way, I'll be sitting tight with you, might trade a few around Eagle Time but FAR looks to be putting everything together now in times of record prices and the future looks good.

[Mick100]

Yeah, been holding for a couple of yrs now
I like the way these guys operate taking on smallish high probability targets so far. Seems to be working out for them and things have never looked bettrer than they do ATM. .
- production
- strong cash positon
- exciting drilling program
- high demand/price for gas

,Next yr is going to be a big yr for this company.
,

[Watson]

After the recent selldown to 9.9c it looks like we are ready to attack resistence at 10.5c once again.........buyers in excess of 3 million at 10c...may even touch 11c if it gets going in the afternoon session....hoping for a strong close today. cheers W

[Watson]

Groundhog day ..perhaps tomorrow will provide some excitement.
cheers W

[Watson]

Nice start to the day...bids at 10.5c now and increasing
Buyer took out 1 million on the sell at 10.5c

could be in for a bit of price action today....you beaut:D:D

[bailej03]

Hey Watson,

Still holding out? Disappointing to not hear anything re welder and no other drills spuding on time. Eagle also looks like it may be delayed to early/late December going by VPE & SUR quarterly's. On the positives, HZN highlighted a potential spud in China for mid November, this will be a great one to have in a lead up to Eagle.

SP wollowing at 10-10.5c, I am picking up a few more at 10c, might breech it on severe boredom/ another plunge on XAO, but long term cheap as chips.

Bring on Eagle[8D]

[ELYOB]

FAR : turning high volume [18m in first 1/2 hr]this morning ; Maybe something going on . Price up from 4.4 --> 5c ....

All I can see is PCL is presenting at the East Africa O&G Conference in Kenya on Monday 26th -27th .

A tip sheet has put 5.5c today apparently .