- FAR (FAR) subsidiary FAR Gambia purchases an additional 50 per cent interest in two blocks in The Gambia, taking its interest to 100 per cent
- Now that it has a total working interest in blocks A2 and A5, FAR will undertake a geoscience review with the help of potential partners who FAR hopes will fund exploration
- For the review, the company will incorporate results from the nearby Samo-1 and Bambo-1 wells to optimise the location of future wells and maximise value in the area
- Company shares are trading flat at 82.5 cents at 1:30 pm AEST
FAR’s (FAR) subsidiary FAR Gambia has recently acquired an additional 50 per cent interest in blocks A2 and A5 from PC Gambia, a subsidiary of Petroliam Nasional Berhad.
As a result, FAR now has a 100 per cent working interest in Block A2 and Block A5 which lie offshore of The Republic of The Gambia.
As part of the acquisition, the company has negotiated with the Government of The Gambia to remove the obligation to drill an exploration well during the next two-year license term which is due to commence on October 1.
Removing the commitment to drill the well translates to reduced expenditure and allows for a detailed geoscience review integrating the results of the nearby Samo-1 and Bambo-1 wells to ensure the location of future wells are optimised.
FAR has also initiated a process to find potential joint venture partners to undertake the geoscience review and drill additional wells. The company expects the future partners will fund the exploration program and, subject to certain conditions, may assume Operatorship.
Having a 100 per cent interest in both blocks and the revised investment obligation reportedly enhances the company’s ability to seek partners for these plans.
“FAR’s acquisition of the remaining 50 per cent of The Gambia assets and the positive discussions with the Government of The Gambia on the terms for the first extension exploration period will provide FAR options to utilise its valuable exploration data to maximise value from the asset,” Chairman Patrick O’Connor said.
“FAR remains committed to generating real value for our shareholders, and we see this transaction as a part of that overarching strategy.”
Company shares were trading flat at 82.5 cents at 1:30 pm AEST.