- Australian oil and gas explorer FAR has announced a conditional placement to raise a further $146 million for its Sangomar Oil Field development
- This is in addition to a $146 million junior debt facility and a $515 million senior debt facility
- The placement to senior and institutional investors will be issued at 4.25 cents per share, pending shareholder approval
- In addition, a share purchase plan will be offered to eligible existing shareholders at the same price to raise another $30 million
- Shares in FAR are down 24.1 per cent, worth 4.1 cents apiece
Oil and gas explorer FAR (ASX:FAR) has announced a conditional placement to raise $146 million for its Sangomar Oil Field development.
The placement to senior and institutional investors will be issued at 4.25 cents per share, pending shareholder approval at a General Meeting in January.
It is also dependant upon the receipt of the credit approved Term Sheet for the underwritten $515 million senior debt facility arranged by Macquarie Bank.
Furthermore, a share purchase plan (SPP) will be offered to eligible existing shareholders, at the same price, to raise another $30 million.
Combined, the placement, the senior and junior debt facilities, the SPP and existing cash reserves will fund capital expenditure to first oil for the Sangomar Oil Field development.
Sangomar Oil Field
The Sangomar Oil Field is located off the coast of Senegal in West Africa.
The project is a joint venture development, operated by Woodside, with three or more phases.
Phase one will target 230 million barrels of oil reserve (mmbbl) and peak production of 100,000 barrels per day (bpd), which would equate to 13,670 bpd net to FAR. This is expected to be reached by early 2023.
The first phase will comprise of 23 wells at a depth of 800 to 1100 meters.
The second phase will involve both oil and gas exportation, targeting a further 255 mmbbl and 160 million barrels of oil equivalent (mmboe) in gas.
This phase is expected to comprise of approximately 16 production wells and 17 injectors.
Shares in FAR are down 24.1 per cent, worth 4.1 cents apiece at 3:03 pm AEDT.