- FAR (FAR) begins steps to withdraw its interest in the Esperanca Blocks 4A & 5A and Sinapa Block 2 offshore Guinea Bissau
- The company said it has provided its notices to withdrawal to the Government of Guinea Bissau and operator Petronor
- According to FAR, joint efforts with Petronor to collaboratively farm-down have been unsuccessful
- FAR has already met the minimum financial commitments for the licence and there are no 2022 commitments in place
- On the market, FAR is down 2.94 per cent, trading at 66 cents per share
FAR (FAR) has begun steps to withdraw its interest in the Esperanca Blocks 4A & 5A and Sinapa Block 2 offshore Guinea Bissau.
The Sinapa and Esperanca permits are located within the Casamance salt sub-basin offshore Guinea-Bissau, which includes three blocks – 2, 4A and 5A. FAR has a 21.43 per cent interest in these two permits
FAR and Petronor commenced a joint farmout of the three blocks with an aim of drilling a well before the end of the current licence period in October 2023.
However, FAR has said that its joint efforts with Petronor to collaboratively farm-down have been unsuccessful.
The company said it has provided its notices to withdrawal to the Government of Guinea Bissau and operator Petronor.
FAR has already met the minimum financial commitments for the licence and there are no 2022 commitments in place. This means that the company does not expect to incur any new material expenses related to these interests.
The company has impaired US$2.7 million (A$3.7 million) of capitalised costs associated with the Guniea Bissau project in 2021.
Petronor is an independent oil and gas exploration and production company.
The Guinea Bissau licences are located in the highly protective trend in the Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry (MSGBC) Basin.
On the market, FAR was down 2.94 per cent, trading at 66 cents per share at 2:10 pm AEDT.