- Oil and gas explorer FAR (FAR) will again postpone its planned sale of the Senegal Project with Woodside (WPL), amid a takeover from Remus Horizons
- The delay comes as Remus tries to finalise funding for a proposal offer to buyout FAR, for 2.1 cents per share currently on issue
- Ahead of the potential offer, the oil and gas company has pushed back the Woodside sale meeting from January 21 to February 18
- This will allow FAR more time to see if the Remus offer eventuates, as the company wants to buy both FAR and its Senegal asset
- In the meantime, the business is working with Woodside to organise payment of a US$15.44 million (roughly A$19.9 million) cash call
- Remus has offered to organise a US$50 million (around A$64.4 million) capital loan facility to help cover the present and future cash calls
- Shares in FAR haven’t traded since September, when they were last priced at 1.1 cents per share
FAR (FAR) has announced it will continue to postpone its planned sale of the Senegal Project with Woodside (WPL), amid a takeover bid from Remus Horizons.
The delay comes as Remus tries to finalise the funding for an official proposal offer to buy out the oil and gas company in full.
Ahead of the potential offer being made, FAR has decided to push back the meeting on the Woodside-run asset sale to February 18.
Background
FAR first announced in November last year that it was planning to sell its stake in the Rufisque, Sangomar, and Sangomar Deep (RSSD) Offshore Blocks off Senegal.
The blocks are currently held in a joint venture operated by Woodside and FAR wanted to sell its share to ONGC Videsh Vankorneft due to a lack of funds.
A month after the sales announcement though, Remus swooped in and announced it would bid to buy 100 per cent of FAR’s issued shares at a price of 2.1 cents each.
However, the business is only interested in buying FAR if it can take control of the Senegal-based asset run by Woodside.
Next steps
After announcing it would delay the sale meeting from January to February, FAR has also advised shareholders its working with Woodside to pay its owed cash call.
The company owes the energy giant around US$15.44 million (roughly A$19.9 million) plus interest.
Remus has offered to organise a US$50 million (around A$64.4 million) capital loan facility to help cover the cost of the cash calls.
But FAR hasn’t stated whether it will push ahead and accept the offer from Remus at this stage.
Shares in FAR remain in limbo, having been suspended from official quotation back in September 2020.
Before that, FAR’s shares last traded at 1.1 cents each.