FAR Ltd today announced that its wholly owned 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 Petroliam Nasional Berhad (“PETRONAS”).

Highlights

• FAR has acquired a further 50% interest in Gambia Blocks A2 and A5 giving the Company a 100% working interest
• Commitment to drill an exploration well during the next two-year contract term removed
• FAR has initiated a process to find partners to fund the forward exploration programme
• New laboratory analysis has positive implications for the Panthera Prospect directly up-dip of Bambo-1.

The next two-year license term for Blocks A2 and A5 is due to commence on 1 October 2022 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 forsuitably 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 programme. 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 utilise its valuable exploration data to maximise 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.”

KeyFacts Energy: FAR Limited Gambia country profile