Petroleum Africa
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Friday, August 26, 2022
FAR Ltd. has announced that its subsidiary FAR Gambia Ltd has recently acquired an additional 50% interest in Blocks A2 and A5 offshore The Republic of The Gambia, giving FAR a 100% working interest. The interest was acquired from PC Gambia Ltd a subsidiary of Malaysian firm PETRONAS.
The next two-year license term for Blocks A2 and A5 is due to commence on October 1 and as part of the acquisition, FAR has negotiated with the government of The Gambia to remove the obligation to drill an exploration well during this term. The removal of the commitment to drill an exploration well results in a significant reduction in expenditure and allows for a detailed geoscience review incorporating the results of the recent Samo-1 and Bambo-1 wells to ensure future exploration wells are located optimally.
The company has opened a data room for suitably qualified parties to consider participation in a Joint Venture to undertake the geoscience review and ultimately to drill additional exploration wells. FAR expects new partners to fund the costs of the work program. Subject to the satisfaction of certain conditions, including Government approval, incoming participants in the Joint Venture may assume operatorship.
The 100% interest in Blocks A2 and A5 and the revised investment obligation enhances FAR’s ability to seek farm-in partners to the project while controlling any potential corporate action and process.
Commenting on the update, FAR Chairman Patrick O’Connor said: “FAR’s acquisition of the remaining 50% 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 utilize its valuable exploration data to maximize value from the asset. These developments have minimal impact on FAR’s forward budget while significantly improving the chance of securing new investment. FAR remains committed to generating real value for our shareholders, and we see this transaction as a part of that overarching strategy.
For the full release with an overview of the blocks, click here.
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