Petroleum Africa
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Wednesday, December 7, 2016
FAR Ltd. refuted claims that it is unable to afford its farm-in option on the Djiffere block offshore Senegal. A news article claimed the company cannot exercise its option to farm into the Djiffere block offshore Senegal because of a lack of funds.
“There has been some concern raised about an article that appeared in a little known African newsletter claiming that FAR could not exercise its option to farm into the Djiffere block offshore Senegal because FAR could not raise money to complete the transaction,” FAR Managing Director Cath Norman said in a Q&A posted on the company’s website.
“The statements made in relation to this issue were false and misleading and FAR has notified the editors. There has been no contact made between FAR and the authors of this newsletter and we have requested that they reveal their source of information and retract the article,” Norman added.
“There is no cash payment to be made to the operator for entry into the permit. As reported in FAR’s September quarterly report to the ASX, FAR finished the quarter with a healthy cash balance of $50 million and estimate spending $8 million in the December quarter,” Norman said. While no cash was required, it was required to shoot 3D seismic to meet its obligations, which it did in 2015.
The company’s option agreement is with Trace Atlantic Offshore Ltd., under which it could earn a 75% interest in the Djiffere block. Preliminary processed data from the 3D survey on Djiffere have been arriving with final products expected to arrive at the end of 2016. FAR expects to be ready to make a final decision regarding its option after this time.
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