Proactiveinvestors Australia FAR Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia FAR Ltd RSS feed en Sat, 20 Jul 2019 21:43:32 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - FAR Ltd has upcoming catalysts in African oil and gas strategy ]]> https://www.proactiveinvestors.com.au/companies/news/221336/far-ltd-has-upcoming-catalysts-in-african-oil-and-gas-strategy-221336.html FAR Ltd (ASX:FAR) has a number of upcoming catalysts for possible share price growth in the coming year as it advances its oil and gas strategy with a primary focus offshore northwest Africa.

The company told shareholders at last week’s annual general meeting (AGM) that it will shortly resubmit a Development and Exploitation Plan for the SNE project offshore Senegal.

READ: FAR targets investment decision for SNE Senegal oil project this year

A Final Investment Decision for this project is also planned for the second half of the year.

Early in the September quarter the company plans to acquire 3D seismic data for the SNE project and is on track for first oil production in 2022 and first gas in 2024.

Shareholders of the oil and gas explorer passed all AGM resolutions by the requisite majority.

Voting results (Source: Company reports).

FAR made the world-class SNE oil discovery in 2014 and since then has become one of the largest holders of the offshore acreage in the Mauritania, Senegal, Guinea-Bissau, Conakry (MSGBC) Basin.

Since the discovery, FAR has drilled 11 wells offshore Senegal, which includes four discoveries and seven successful SNE appraisal wells.

Commerciality was declared on SNE in July 2018 following which a Development and Exploitation Plan was submitted in October 2018.

READ: Floating facility design contract for SNE Oil Field offshore Senegal awarded to Modec International Inc

The company has subsequently started front-end engineering design (FEED) activities and expects to resubmit the Development and Exploitation Plan in mid-2019.

FAR also provided information at the AGM about the Samo-1 well offshore The Gambia, the first well that the company has operated in deep water.

Samo-1 was successfully and safely drilled within budget to the planned depth of around 3,200 metres MDRT and intersected all target horizons.

Prominent Malaysian state-owned oil company PETRONAS farmed into blocks A2 and A5 of this project in March 2018, which carries FAR through the cost of the first exploration well while retaining a 40% working interest.

FAR said this partnership was important as PETRONAS was a world-class deepwater operator that had the capacity and commitment to operate the joint venture in the event of a commercial discovery.

The next licence period begins on July 1, 2019, which requires one well to be drilled at either block.

FAR has also held exploration acreage in Guinea-Bissau for some years and the joint venture which has this acreage is preparing for drilling.

READ: FAR Ltd secures $45 million in share placement

In May the company announced the completion of a $45 million capital raising.

Proceeds will be used to fund FAR’s ongoing interest in the SNE field development, preparatory work for the proposed 2020 drilling program, Australian seismic and processing costs, and general corporate purposes.

$370.5 million market cap

Last week FAR, which has a market capitalisation of approximately $370.5 million, traded in the range of 5.8 to 6.1 cents and is today trading at 5.8 cents.

The company aims to maximise opportunities from its exploration portfolio as well as build its portfolio through strategic additions to exploration acreage.

]]>
Mon, 03 Jun 2019 10:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221336/far-ltd-has-upcoming-catalysts-in-african-oil-and-gas-strategy-221336.html
<![CDATA[News - FAR Ltd answers ASX query on price and volume increases ]]> https://www.proactiveinvestors.com.au/companies/news/219855/far-ltd-answers-asx-query-on-price-and-volume-increases-219855.html FAR Ltd (ASX:FAR) was queried by the ASX today relating to the price of the oil and gas explorer’s securities, which went from a low of 5.7 cents to a high of 6.5 cents on May 7, 2019.

The ASX also noted the increase in the volume of FAR’s securities traded during the same period.

The company responded to the query explaining that it was not aware of any information that had not been released to market.

It also confirmed the article published in the Australian newspaper titled ‘Cairn and FAR look to cash on $4bn project off West Africa’ contained a combination of facts as well as assumptions that are not all true.

The article stated the company had hired an adviser (Royal Bank of Canada) to sell a stake in the $US3 billion SNE development in Senegal.

READ: FAR Ltd secures $45 million in share placement

FAR said it will continue to investigate alternatives for financing its share of the development, including the potential for a possible sell-down.

The company said the placement has been well received by the market and, despite the price increase yesterday, merely restores the company’s shares back to a medium-term trading level and remains under FAR’s longer-term trading level.

Earlier this month the oil and gas company completed a $45 million capital raising through a placement of shares to institutional and sophisticated investors priced at 5.5 cents each.

Proceeds will fund ongoing interest in the SNE field development, preparatory work for the proposed 2020 drilling program, and Australian seismic and processing costs.

]]>
Wed, 08 May 2019 17:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219855/far-ltd-answers-asx-query-on-price-and-volume-increases-219855.html
<![CDATA[News - FAR Ltd secures $45 million in share placement ]]> https://www.proactiveinvestors.com.au/companies/news/219521/far-ltd-secures-45-million-in-share-placement-219521.html FAR Ltd (ASX:FAR) has completed a $45 million capital raising through a placement of shares to institutional and sophisticated investors priced at 5.5 cents each.

Proceeds will fund ongoing interest in the SNE Field development, preparatory work for the proposed 2020 drilling program, Australian seismic and processing costs.

FAR is focused on its portfolio of exploration licences in Senegal, The Gambia and Guinea-Bissau.

It also holds acreage surrounded by proven petroleum systems in the state of Western Australia and exploration acreage in the emerging oil and gas province of Kenya.

READ: FAR targets investment decision for SNE Senegal oil project this year

FAR has an interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture, which holds the licences offshore Senegal, The Gambia, and Guinea-Bissau.

Oil and gas giant Woodside Petroleum (ASX:WPL) is the operator of the RSSD joint venture, which contains the SNE Field.

The SNE deep-water oil field is expected to be Senegal’s first offshore oil development after two world-class, offshore oil discoveries; FAN-1 and SNE-1, were made in Senegal in late 2014.

Targeting first oil by 2022

The field has 5 billion barrels of oil in place, with the company having plans for a development to extract 500 million of those barrels.

A final investment decision is pencilled in for the September quarter of 2019.

If the company opts to develop the oilfield asset, FAR would hope to achieve first oil at SNE by 2022.

]]>
Thu, 02 May 2019 11:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219521/far-ltd-secures-45-million-in-share-placement-219521.html
<![CDATA[News - FAR Ltd enters trading halt ahead of capital raising ]]> https://www.proactiveinvestors.com.au/companies/news/219411/far-ltd-enters-trading-halt-ahead-of-capital-raising-219411.html FAR Ltd (ASX:FAR) has been granted a trading halt by the ASX pending the release of information regarding a proposed capital raising.

Shares in the company will remain halted until the earlier of either, the release of relevant information, or, the commencement of trading on Friday 3 May 2019.

READ: FAR targets investment decision for SNE Senegal oil project this year

FAR continues to work on both its Gambia and Senegal offshore oil and gas projects.

Proactive caught up with FAR's managing director Cath Norman in March 2019.

]]>
Wed, 01 May 2019 08:31:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219411/far-ltd-enters-trading-halt-ahead-of-capital-raising-219411.html
<![CDATA[News - FAR targets investment decision for SNE Senegal oil project this year ]]> https://www.proactiveinvestors.com.au/companies/news/218951/far-targets-investment-decision-for-sne-senegal-oil-project-this-year-218951.html FAR Ltd (ASX:FAR) (FRA:FA6) (OTCMKTS:FARYF) is an Africa-focused oil & gas exploration and development company. It holds assets off Senegal and The Gambia, making it a large acreage holder in the emerging Mauritania, Senegal, Guinea-Bissau, Conakry (MSGBC) Basin.

The company started in 1984 as First Australian Resources NL and is run by managing director Cath Norman, a geophysicist with 33 years of industry experience.

Norman is an experienced managing director and has led a number of companies over the past 26 years in the energy, geoscience and surveying space. She previously headed up Flow Energy Limited and Gippsland Offshore Petroleum Ltd as a managing director.

What does FAR own?

Two key assets are the world-class FAN-1 and SNE-1 discoveries off Senegal made in 2014 and at the time the latter was considered a landmark discovery.

The two wells were the first exploration wells to be drilled offshore Senegal for more than 20 years and the first wells to be drilled in water deeper than 500 metres.

A series of subsequent SNE oilfield appraisal wells have taken the number of holes drilled to 11.

Discoveries such as SNE-North and FAN-South have added value to the project and support a case for hub development at SNE.

The field has 5 billion barrels of oil in place, with the company having plans for a development to extract 500 million of those barrels.

A final investment decision is pencilled in for the September quarter of 2019.

If the company opts to develop the oilfield asset, FAR would hope to achieve first oil at SNE by 2022.

What has FAR achieved in the past year?

FAR’s corporate strategy is to place strong focus on value generation through oil & gas discoveries and the pursuit of new opportunities through exploration.

The company produced its fiscal year annual report in March 2019, highlighting a number of achievements.

These achievements included partnering in February 2019 with Petronas on blocks A2/A5 in The Gambia and milestone 2019 drilling at Samo-1 - the first well in The Gambia for 40 years.

In October 2018 the company submitted a field development and exploitation plan to the Senegalese Government after declaring commerciality on the project in July 2018.

The company had a notable $27.8 million cash and no debt at the end of 2018.

It planned to spend $10.3 million in the March quarter of 2019, with its next quarterly report expected later this month.

Inflection points

Regulatory approvals

Exploration and discovery successes

Seismic survey results from an offshore Western Australia asset, due in the December half-year of 2019

Final investment decision on Senegal asset developments about the September quarter of 2019

First oil in Senegal targeted for 2022

Acreage expansions, strategic agreements and significant transactions

Investor and majors’ interest in activities and milestones

Managing director Cath Norman outlines Senegal project history and timetable

“We have a focus on the northwest of the African continent in what is called the MSGBC — the Mauritania, Senegal, Guinea-Bissau, Conakry Basin,” managing director Cath Norman told Proactive Investors’ New York studio last month.

“At the end of 2014 we made the world’s largest oil discovery for the year, which was a fantastic achievement, and that field is offshore Senegal in a field called SNE.

“In the subsequent four years we’ve now drilled 11 wells offshore Senegal, all successful for oil.

“We’ve made four separate independent discoveries and drilled seven appraisal wells in the SNE field, so we’ve had huge success and we haven’t drilled a dry well yet offshore Senegal.

“The field is now 5 billion barrels of oil in place and we’re contemplating a development of 500 million of those barrels.

“We should be getting to (final investment decision) for those developments for about the end of Q3-ish and our first oil would be 2022.”

 

]]>
Tue, 23 Apr 2019 19:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218951/far-targets-investment-decision-for-sne-senegal-oil-project-this-year-218951.html
<![CDATA[Media files - FAR Ltd's Cath Norman calls US investors' response to its northwest Africa project 'terrific' ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12600/far-ltd-s-cath-norman-calls-us-investors--response-to-its-northwest-africa-project--terrific--12600.html Thu, 14 Mar 2019 11:27:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12600/far-ltd-s-cath-norman-calls-us-investors--response-to-its-northwest-africa-project--terrific--12600.html <![CDATA[Media files - FAR Ltd MD talks development of assets offshore West Africa and Western Australia ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12476/far-ltd-md-talks-development-of-assets-offshore-west-africa-and-western-australia-12476.html Wed, 06 Mar 2019 12:55:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12476/far-ltd-md-talks-development-of-assets-offshore-west-africa-and-western-australia-12476.html <![CDATA[News - FAR Ltd completes rehabilitation and expansion of labour ward at Soma Regional Hospital in The Gambia ]]> https://www.proactiveinvestors.com.au/companies/news/215278/far-ltd-completes-rehabilitation-and-expansion-of-labour-ward-at-soma-regional-hospital-in-the-gambia-215278.html FAR Ltd (ASX:FAR) has completed the expansion and renovation of the labour ward at the Soma Regional Hospital in The Gambia.

On behalf of its joint venture FAR partnered with UK Jarra Association (UKJA) to undertake the work, which will help the hospital better meet its objective to handle up to 100 deliveries per month.

The company was responsible for the construction of the delivery ward extension, repair and refurbishment of the existing delivery ward and the provision and fitting for the expanded ward.

READ: FAR outlines values drivers for next 12 months

FAR managing director Cath Norma said: “We would like to thank UK Jarra Association, the contractors who completed the works and all those involved in the successful completion of this project.

“We greatly appreciate the support of the Ministry of Petroleum of Energy and the Ministry of Health, we are thrilled to play a small role in maternal and baby health care in The Gambia.”

UKJA was responsible for sourcing the medical equipment for the expanded ward including medicine storage facilities such as a drug refrigerator, sterilisation machines, new beds and privacy screening.

- Jessica Cummins 

]]>
Tue, 26 Feb 2019 00:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215278/far-ltd-completes-rehabilitation-and-expansion-of-labour-ward-at-soma-regional-hospital-in-the-gambia-215278.html
<![CDATA[News - Floating facility design contract for SNE Oil Field offshore Senegal awarded to Modec International Inc ]]> https://www.proactiveinvestors.com.au/companies/news/215180/floating-facility-design-contract-for-sne-oil-field-offshore-senegal-awarded-to-modec-international-inc-215180.html FAR Ltd (ASX:FAR), as part of the RSSD joint venture, has awarded MODEC International Inc the front-end engineering design (FEED) contract of the floating production storage and offloading (FPSO) facility for the SNE oil field offshore Senegal.

The FPSO will be designed to allow for the integration of subsequent SNE development phases, including gas export to shore and future subsea tie-backs from other reservoirs and fields.

MODEC is recognised as a leading specialist for FPSO vessels having delivered 46 floating production systems and currently owning 13 FPSOs.

READ: FAR Ltd begins engineering design work at SNE oil field offshore Senegal

FAR holds a 15% interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture, which is developing the SNE field.

FAR managing director Cath Norman said: “This is another milestone reached for the SNE development and for the RSSD joint venture towards reaching a Final Investment Decision (FID) targeted for 2019.”

READ: FAR Ltd concludes seismic data acquisition across offshore Western Australia permit

The SNE field is being developed in phases, with the first targeting an estimated 230 million barrels of oil resources from 11 producing wells, 10 water injectors and two gas injectors.

This phase will primarily target the lower, less complex reservoirs.

FAR expects its FPSO vessel to have a capacity of around 90,000 barrels of oil per day in the first phase, with first oil targeted for 2022.

]]>
Mon, 25 Feb 2019 16:33:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215180/floating-facility-design-contract-for-sne-oil-field-offshore-senegal-awarded-to-modec-international-inc-215180.html
<![CDATA[News - FAR Ltd concludes seismic data acquisition across offshore Western Australia permit ]]> https://www.proactiveinvestors.com.au/companies/news/213211/far-ltd-concludes-seismic-data-acquisition-across-offshore-western-australia-permit-213211.html FAR Ltd (ASX:FAR) has safely and successfully completed the seismic acquisition across the permit WA-458-P, which lies within the prolific Dampier sub-basin offshore Western Australia.

Background

Late last quarter FAR concluded stakeholder engagements with geophysical services company CGG to join in the much anticipated Davros Extension Multiclient 3D Survey.

FAR received a Notice of Start of Acquisition from CGG in mid-December as the MV Geo Coral began its mobilisation from southeast Asia.

After a brief port call in Broome, the vessel commenced deployment of in-water equipment whilst on route to the survey area.

Post end of the quarter, seismic acquisition across permit WA-458-P began.

Location of WA-458-P and Davros 3D seismic survey

The survey was safely and securely completed in mid-January and FAR anticipates receiving the final processed data in H2 2019 to enable a full evaluation of WA-458-P.

Importantly, the new data will be used for detailed mapping of the prospects which have been identified, leading to selection of potential candidates for drilling.

FAR intends to farm down its high interest in WA-458-P after completing its evaluation of the permit using this new seismic data.

READ: FAR Ltd begins engineering design work at SNE oil field offshore Senegal

FAR managing director Cath Norman said: “It is great to finally complete the seismic over the WA-458- P permit.

“Offshore Western Australia has seen a resurgence of activity following the Dorado discovery and FAR looks forward to completing this work on the block, aimed at identifying a drillable prospect, and then bringing in a partner for the drilling.”

]]>
Thu, 24 Jan 2019 14:28:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213211/far-ltd-concludes-seismic-data-acquisition-across-offshore-western-australia-permit-213211.html
<![CDATA[News - FAR Ltd begins engineering design work at SNE oil field offshore Senegal ]]> https://www.proactiveinvestors.com.au/companies/news/211278/far-ltd-begins-engineering-design-work-at-sne-oil-field-offshore-senegal-211278.html FAR Limited (ASX:FAR) has begun front-end engineering design (FEED) activities for phase-one development of its SNE oil field offshore Senegal.

The FEED will aim to finalise budget, schedule and technical definition of the oil field’s development before a final investment decision is reached in 2019.

SNE is being developed through a joint venture agreement with FAR acting as operator and holding a 15% interest in the project.

 

FAR managing director Cath Norman said the start of FEED activities was a significant milestone for the joint venture’s development of the SNE field.

Norman said: “From discovery to entering FEED in a four-year period, especially given the general market conditions, is a substantial achievement for the joint venture.

“In addition to the commencement of FEED, the joint venture project financing has now commenced.

“It has been a successful 2018 for the SNE field development project and we look forward to working closely with the joint venture and Government of Senegal as we progress the final investment decision in 2019.”

READ: FAR Ltd completes major milestone for the SNE oil field

The SNE field is being developed in phases, with the first targeting an estimated 230 million barrels of oil resources from 11 producing wells, 10 water injectors and two gas injectors.

This phase will primarily target the lower, less complex reservoirs.

FAR expects its floating production storage and offloading (FPSO) vessel to have a capacity of around 90,000 barrels of oil per day in the first phase, with first oil targeted for 2022.

READ: Far Ltd remains upbeat after completing Samo-I well

FAR recently completed drilling the Samo-1 well offshore from The Gambia, encountering oil shows at several levels which indicate the area has access to an active hydrocarbon charge system.

As the first offshore well in 40 years and the first modern well, the data from Samo-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.

Although the well will be abandoned due to wireline logs indicating the main target horizons are water-bearing, the drilling has provided new subsurface information that will help the company understand the geological play along the shelf edge.

The Gambia’s government has confirmed a six-month extension to the current licence to allow for evaluation of the Samo-1 well results.

]]>
Mon, 17 Dec 2018 11:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211278/far-ltd-begins-engineering-design-work-at-sne-oil-field-offshore-senegal-211278.html
<![CDATA[News - FAR Ltd major shareholder increases stake ]]> https://www.proactiveinvestors.com.au/companies/news/211186/far-ltd-major-shareholder-increases-stake-211186.html FAR Ltd’s (ASX:FAR) major shareholder Meridian Capital International Fund has increased its holding in the company to 15.56% from 14.55%.

Meridian increased their stake through share purchases across a number of days including 5 days between 29 October and 1 November and 5 days between 30 November and 7 December.

The increase follows the recent share purchases by managing director Cath Norman, who acquired 150,000 shares in on-market trades.

READ: FAR Ltd managing director buys shares on-market

Last month, FAR completed drilling the Samo-1 well offshore from the Gambia, encountering oil shows at several levels which indicate the area has access to an active hydrocarbon charge system.

As the first offshore well in 40 years and the first modern well, the data from Samo-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.

Although the well will be abandoned due to wireline logs indicating the main target horizons are water-bearing, the drilling has provided new subsurface information that will help the company understand the geological play along the shelf edge.

The Gambia’s government has confirmed a six-month extension to the current licence to allow for evaluation of the Samo-1 well results.

]]>
Fri, 14 Dec 2018 08:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211186/far-ltd-major-shareholder-increases-stake-211186.html
<![CDATA[News - FAR Ltd managing director buys shares on-market ]]> https://www.proactiveinvestors.com.au/companies/news/210736/far-ltd-managing-director-buys-shares-on-market-210736.html FAR Ltd (ASX:FAR) managing director Catherine Norman has demonstrated confidence in the company’s oil & gas strategy by purchasing 150,000 ordinary shares in recent on-market trades.

This brings her indirect interest in FAR Ltd to 150,000 shares, with her direct interest of more than 23.674 million shares remaining unchanged.

FAR recently completed drilling the Samo-1 well offshore from the Gambia, encountering oil shows at several levels which indicate the area has access to an active hydrocarbon charge system.

As the first offshore well in 40 years and the first modern well, the data from Samo-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.

Although the well will be abandoned due to wireline logs indicating the main target horizons are water-bearing, the drilling has provided new subsurface information that will help the company understand the geological play along the shelf edge.

The Gambia’s government has confirmed a six-month extension to the current licence to allow for evaluation of the Samo-1 well results.

READ: FAR Ltd director takes opportunity to buy shares on market

Last month the company's non-executive director Tim Woodall purchased 250,000 shares through on-market trades.

This increased his total holding in the company to 2.25 million shares.

Exploration plan submitted for SNE oil field

Far Ltd has recently submitted a development and exploration plan to the Senegal government for the SNE oil field located offshore Senegal.

The plan outlines the full field multi-phase development of oil and gas and details how the field will be developed in a series of phases.

These phases plan to develop a 500-million barrels of oil operation with a plateau production of 100,000 barrels of oil per day.

]]>
Fri, 07 Dec 2018 15:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210736/far-ltd-managing-director-buys-shares-on-market-210736.html
<![CDATA[Media files - FAR Ltd still has high hopes for Gambian blocks with several prospects identified ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11195/far-ltd-still-has-high-hopes-for-gambian-blocks-with-several-prospects-identified-11195.html Wed, 14 Nov 2018 15:18:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11195/far-ltd-still-has-high-hopes-for-gambian-blocks-with-several-prospects-identified-11195.html <![CDATA[News - FAR Ltd director takes opportunity to buy shares on market ]]> https://www.proactiveinvestors.com.au/companies/news/209053/far-ltd-director-takes-opportunity-to-buy-shares-on-market-209053.html FAR Ltd (ASX:FAR) has had its non-executive director Tim Woodall purchase 250,000 shares through on-market trades at an average price of 8.2 cents.

The purchase increases Woodall’s total holding in the company to 2.25 million shares.

READ: FAR Ltd remains upbeat after completing Samo-1 well

FAR recently submitted the development and exploration plan to the Senegal government for the SNE oil field located offshore Senegal.

The plan outlines the full field multi-phase development of oil and gas and details how the field will be developed in a series of phases.

These phases plan to develop a 500-million barrels of oil operation with a plateau production of 100,000 barrels of oil per day.

]]>
Tue, 13 Nov 2018 13:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209053/far-ltd-director-takes-opportunity-to-buy-shares-on-market-209053.html
<![CDATA[News - FAR Ltd remains upbeat after completing Samo-1 well ]]> https://www.proactiveinvestors.com.au/companies/news/208886/far-ltd-remains-upbeat-after-completing-samo-1-well-208886.html FAR Ltd (ASX:FAR) has drilled the Samo-1 well down to a total depth of 3,240 metres located offshore The Gambia.

While well operations to date have been conducted safely, efficiently, ahead of schedule and within budget, wireline logs so far indicate that the main target horizons are water-bearing.

FAR remains upbeat as oil shows were encountered at several levels indicating that the area has access to an active hydrocarbon charge system.

Furthermore, as the first offshore well in 40 years and the first modern well, the data from Samo-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.

READ: FAR completes major milestone for SNE oil field

FAR’s managing director Cath Norman said: “The result in the Samo-1 well is not in line with our pre-drill expectations, however it is providing an abundance of new subsurface information that will help us understand the geological play along the shelf edge – an area which remains grossly underexplored.


First well to be drilled in 40 years

“The FAR team has identified a portfolio of prospects and leads in the A2 and A5 permits and the data from Samo-1 will be used to further mature and de-risk these for future drilling.

“Drilling the first well offshore Gambia for 40 years has drawn attention to this well and the result is a reminder of the risks we face in our business.”

Six month licence extension granted

The Government of The Gambia has confirmed a six-month extension to the current licence to end June 2019 to allow for evaluation of the Samo-1 well results

Norman added: “We are pleased to receive a six-month extension to the licence, which will allow the JV to formulate and move on with plans to drill next year, after integrating the results from Samo-1 into the regional geological model.”

]]>
Fri, 09 Nov 2018 12:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208886/far-ltd-remains-upbeat-after-completing-samo-1-well-208886.html
<![CDATA[News - FAR completes major milestone for SNE oil field ]]> https://www.proactiveinvestors.com.au/companies/news/207888/far-completes-major-milestone-for-sne-oil-field-207888.html FAR Ltd (ASX:FAR) has submitted the development and exploration plan to the Senegal government for the SNE oil field located offshore Senegal.

The plan outlines the full field multi-phase development of oil and gas and details how the field will be developed in a series of phases.

These phases plan to develop a 500-million barrels of oil operation with a plateau production of 100,000 barrels of oil per day.

READ: FAR Ltd outlines value drivers for next 12 months

FAR’s managing director Cath Norman said: “Submission of the development plan for SNE is a huge milestone for our company.

“Since the SNE discovery well four years ago, FAR has participated in three more oil discoveries offshore Senegal and successfully drilled 7 SNE appraisal wells at 100% success rate for the 11 wells.

“SNE was the world’s largest oil discovery for 2014 and, more importantly, the first offshore oil field discovered off the shores of Senegal.

First oil planned for 2022

“FAR has had a long and enjoyable relationship with the people and country of Senegal over 12 years and it is particularly rewarding for our company to be here presenting the development plan to the Government.

“We look forward to watching this development progress towards first oil in 2022 and first gas in about 2024.”

The first phase of oil development will principally develop the S500 resource with up to 23 subsea oil wells.

Following the establishment of oil production, gas will be produced.

READ: FAR Ltd commences drilling Samo-1 oil well offshore West Africa

Earlier this month, FAR commenced drilling on the Samo-1 exploration well in the 40% owned block A2 located offshore The Gambia in West Africa.

The Samo-1 well will be drilled in 1,000 metres of water depth to a planned depth of around 3,100 metres.

The Samo Prospect has two key reservoir intervals and is assessed to contain a combined Prospective Resource of 825 million barrels of oil.

]]>
Fri, 26 Oct 2018 08:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207888/far-completes-major-milestone-for-sne-oil-field-207888.html
<![CDATA[News - FAR Ltd commences drilling Samo-1 oil well offshore West Africa ]]> https://www.proactiveinvestors.com.au/companies/news/207614/far-ltd-commences-drilling-samo-1-oil-well-offshore-west-africa-207614.html FAR Ltd (ASX:FAR) has commenced drilling on the Samo-1 exploration well in the 40% owned block A2 located offshore The Gambia in West Africa.

The Samo-1 well will be drilled in 1,000 metres of water depth to a planned depth of around 3,100 metres.

The Samo Prospect has two key reservoir intervals and is assessed to contain a combined Prospective Resource of 825 million barrels of oil.

READ: FAR Ltd outlines value drivers for next 12 months

FAR’s managing director Cath Norman said: “This is a very exciting time for FAR as we embark on our first exploration drilling program since the 11 successful wells drilled in neighbouring Senegal.

“The Samo-1 well is the first well to be drilled offshore The Gambia for 40 years and because of this, it is attracting wide international attention.

Partnered with PETRONAS and Gambia government

“I am grateful for the hard work of the operational team in preparing for the Samo-1 well and the strong co-operation of our co-venture partner PETRONAS and the Government of the Gambia.

We join our stakeholders in looking forward to safe and efficient operations.

“As is standard in offshore exploration drilling, FAR will be running a tight hole operation - we look forward to making updates as we reach important milestones.”

]]>
Tue, 23 Oct 2018 11:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207614/far-ltd-commences-drilling-samo-1-oil-well-offshore-west-africa-207614.html
<![CDATA[News - FAR Ltd outlines value drivers for next 12 months ]]> https://www.proactiveinvestors.com.au/companies/news/205693/far-ltd-outlines-value-drivers-for-next-12-months-205693.html FAR Ltd (ASX:FAR) has a busy West African schedule in the next few weeks as it expects to start drilling the Samo project in The Gambia, which it holds with Malaysian state oil company PETRONAS.

In addition to this, its Senegal JV intends to submit an exploitation plan to the government of Senegal for the development of the world-class SNE field.

FAR has signficant holdings in Africa.

Melbourne-based FAR’s drilling efforts in The Gambia are fully carried up to US$45 million by PETRONAS, which farmed into blocks A2 and A5 in the country earlier this year and now holds 40% of the project to FAR’s 40% stake.

FAR will drill the Samo-1 well, in block A2, with the prospect lying to the south and along trend from the giant SNE oil field in Senegal.

Rig reactivation for the October kick-off has already begun and the shore base for drillers is in Dakar, Senegal.

The Australian company has produced nine successful appraisal wells and two exploration wells from this trend for a 100% success rate.

FAR managing director Cath Norman told Proactive Investors: “In Senegal we will see the exploitation plan submitted to the government towards the end of September, with government approval expected at the end of the year, but it is full steam ahead for our value-adding catalyst which is progressing the Samo-1 well in The Gambia.

“Our aim is to continue building on our enviable position within the Mauritania-Senegal-Guinea-Bissau-Conakry basin, (taking) an offshore focus as we follow the paleo-shelf-edge trend in the basin.

“We have selected our final well location and we are targeting two reservoir intervals.”

READ: FAR Ltd granted government approval for Petronas farm-out in blocks A2 and A5, The Gambia

The first of these, an upper reservoir interval had contained liquid-rich gas at SNE.

The second, a lower reservoir interval was oil-bearing at SNE.

Norman said: “The two target reservoir intervals are assessed to have a combined prospective resource of 825 million barrels of oil — a best estimate, gross, recoverable (figure).

“Auditors RISC have given this well a 50% chance of geological success which is very high for an exploration well but this is because we have drilled the same reservoirs in the Samo prospect nine times to the north in Senegal.”

FAR has also mapped other prospects in A2 block — Samo, Soloo and Bambo — with an additional 668 million barrel best estimate of gross recoverable barrels.

Soloo and Bambo are drilling targets the company will focus on after Samo.

READ: FAR Ltd selects location for the Samo-1 OIL and gas exploration well offshore The Gambia

FAR made the world’s largest oil discovery in 2014 at SNE in its joint venture and is advancing the project and progressing towards development.

The JV has invested US$950 million in the past 4 years, after FAR’s partners backed a carry-through farm-in drilling program to the tune of US$200 million back in 2014.

First oil from the SNE field is expected in 2022 and first gas in 2024.

The partners plan to submit an exploitation plan based on the commerciality and development concepts of FAR’s SNE Evaluation Report, submitted in July, by the end of this quarter.

Their break-even oil price is US$35 a barrel, with phase 1 production set at 100,000 barrels a year.

READ: FAR prepares to drill for oil offshore The Gambia, backed by oil major PETRONAS

Norman said: “We are expecting to submit this exploitation plan to the government at the end of this month for government approval by year end before heading into final investment decision in the latter half of 2019.”

In addition to FAR’s high-profile JV and farm-in partners, the company also has the support of Meridian Capital International Fund which held a 14.55% stake at the time of its last notice in May.

FIL Limited ceased being a substantial holder in March after taking a 5.26% stake in May last year.

Trends continue across national borders.

Market values barrels

Current valuations of FAR put its value at $5-6 per 2C contingent barrel of oil.

The valuation is based on the net value of FAR’s share of SNE 2C contingent resources of 96 million barrels, or 126 million barrels net to FAR if an extra 30 million barrels is added to take into account for the additional discoveries in Senegal being FAN, FAN-South and SNE-North, announced in March.

The company told Proactive Investors: “Should our Samo-1 well be successful in discovering 825 million barrels of 2C contingent resources, this will add 330 million barrels of 2C contingent resources to FAR’s inventory and we would expect the market to reflect this increase in net barrels to FAR in our share price.”

Exploration costs come down

FAR acknowledges exploration adds the most value to FAR for its shareholders and views its current drilling program as getting on with its “core business”.

Norman said: “Following the huge success in Senegal, FAR’s focus for exploration is on the MSGBC (Mauritania-Senegal-Guinea-Bissau-Conakry) basin in West Africa where we are now the largest acreage holder with 8 blocks.”

The cost of exploration in the basin has come down.

Norman said: “We are seeing the lowest rig rates we’ve seen for a number of years.

“In fact we had a five-well program last year in Senegal where we were drilling at US$190,000 a day with an extremely efficient drillship … and we’ve secured this rig for exactly the same rate for our one-well program at Samo — so it’s a perfect time to be exploring.”

Governments support investors

FAR views the two nations it operates in, Senegal and The Gambia as supportive environments.

Norman said: “We have a very good relationship with the Government of Senegal and also in The Gambia where we are the only offshore operator and about to drill their first well for 40 years.

“Both countries recognise that they need foreign investment in oil exploration and development whilst they build their own capabilities in country.

“FAR looks to continue to support this capacity building in both countries over the coming years.”

FAR is the longest standing oil company offshore of Senegal where the company has been since 2006.

The company is viewed as a catalyst which opened up the basin and allowed it to become the hotspot it is today.

Traditional energy sources part of the mix

FAR acknowledges renewable energy has entered the energy mix on a global scale but believes increased energy demand will ensure demand for oil and gas will continue.

Norman said: “It’s great to see renewable energies making their way into the global energy mix. However, we are living in an era of growing global population that requires ever more energy.

“For the foreseeable future the forecast demand for oil and gas is reflecting a growth in demand net of renewable energy contributions.”

The company banked $19 million from PETRONAS recently, helping improve its current cash position to what is a little less than $50 million today.

]]>
Tue, 25 Sep 2018 19:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205693/far-ltd-outlines-value-drivers-for-next-12-months-205693.html
<![CDATA[Media files - Samo-1 well offshore The Gambia gaining attention of industry experts for FAR Ltd ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10412/samo-1-well-offshore-the-gambia-gaining-attention-of-industry-experts-for-far-ltd-10412.html Tue, 11 Sep 2018 10:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10412/samo-1-well-offshore-the-gambia-gaining-attention-of-industry-experts-for-far-ltd-10412.html <![CDATA[News - FAR Ltd granted government approval for PETRONAS farm-out in blocks A2 and A5, The Gambia ]]> https://www.proactiveinvestors.com.au/companies/news/203644/far-ltd-granted-government-approval-for-petronas-farm-out-in-blocks-a2-and-a5-the-gambia-203644.html FAR Ltd (ASX:FAR) has taken another step towards drilling the oil & gas resource potential offshore The Gambia after securing government approval for a farm-out to major global oil industry player PETRONAS.

The Ministry of Petroleum and Energy has approved the assignment by FAR Gambia Ltd of a 40% interest in petroleum licences for offshore blocks A2 and A5.

Under the terms of the farm-out agreement executed in February 2018, PETRONAS will fund 80% of the exploration well costs of the Samo-1 well up to a maximum total gross cost of US$45 million.

READ: FAR shares up 75% in 2018 with more potential catalysts to come

FAR’s managing director Cath Norman said, “By securing the approval of The Gambian Ministry of Petroleum and Energy, FAR has achieved another milestone towards its objective of drilling the substantial oil resource potential of the highly prospective blocks A2 and A5 in The Gambia.

“We again thank the Gambia Ministry of Petroleum and Energy, the Gambia National Petroleum Company (GNPC), the Government of the Gambia and our broader Gambian stakeholders.

“We look forward to working with them to drill Gambia’s first exploration well since 1979 with our coventurer, PETRONAS.”

 

In addition to the well costs, PETRONAS will pay FAR cash consideration of US$6 million plus 80% of non-well back costs.

Proceeds are subject to reconciliation and were estimated to be A$19 million at June 30, 2018.

The farm-out will see PETRONAS acquire a 40% working interest with FAR retaining 40% of its original 80% interest as well as operator status.

PETRONAS and FAR plan to drill the Samo-1 well in late 2018 targeting a prospective resource of 825 million barrels of oil.

The A2 and A5 blocks are along trend from the SNE oil field in Senegal.

To carry out this work, FAR has secured a contract with a subsidiary of Stena Drilling which will provide and operate the Stena DrillMAX drillship.

This is a state of the art, dual mast, dynamically positioned, deepwater drillship with a rig crew that has extensive international and regional West African experience.

READ: FAR Ltd selects location for the Samo-1 oil and gas exploration well offshore The Gambia

The Samo-1 well location has been selected to test the Samo prospect, which is immediately to the south and along trend from the giant SNE oil field in Senegal.

This trend has so far seen nine successful exploration and appraisal wells at a 100% success rate.

The well will be in approximately 1,017 metres water depth and 112 kilometres offshore in the highly prospective Mauritania-Senegal-Guinea-Bissau-Conakry (MSGBC) Basin.

Another prospect identified

In addition, FAR has identified and mapped another prospect, Bambo, which is northeast of Samo.

The company continues to interpret the seismic data in this highly prospective area with a view to revealing additional prospects and leads for future drilling.

FAR has advised that executive director Ben Clube has resigned from the board.

Following a review of board composition, it has been decided that the independence of the board is best served by the managing director being the only executive on the board.

Consequently, the board now comprises three non-executive directors and the managing director.

Clube will also shortly be leaving the company.

“In his various executive capacities, he has made a significant and important contribution to the commercial development of the company and displayed outstanding skill and dedication,” the company said in a statement.

“We thank him for his contribution to FAR’s success and we wish him well in the future.”

]]>
Tue, 28 Aug 2018 10:15:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203644/far-ltd-granted-government-approval-for-petronas-farm-out-in-blocks-a2-and-a5-the-gambia-203644.html
<![CDATA[News - FAR Ltd selects location for the Samo-1 oil and gas exploration well offshore The Gambia ]]> https://www.proactiveinvestors.com.au/companies/news/203351/far-ltd-selects-location-for-the-samo-1-oil-and-gas-exploration-well-offshore-the-gambia-203351.html FAR Ltd (ASX:FAR) has selected a location for the Samo-1 well which will form part of its Gambian oil and gas exploration program.

The well will test the Samo prospect, which is immediately to the south and along trend from the giant SNE oil field in Senegal.

This trend has so far seen nine successful exploration and appraisal wells at a 100% success rate.

READ: FAR shares up 75% in 2018 with more potential catalysts to come

FAR managing director Cath Norman said, “We are very excited to be drilling the Samo prospect.

“Given the nine successful wells drilled on the shelf to date in Senegal and into the key reservoirs in the Samo prospect, the geological chance of success for drilling this prospect is high for a frontier exploration well.”

First well offshore for 40 years

Samo-1 will be the first well drilled offshore The Gambia for 40 years.

The well location was selected by FAR Gambia Ltd, a wholly-owned subsidiary of FAR Ltd, after reprocessing and interpretation of 3D seismic data, detailed mapping of the prospect and detailed well engineering.

Samo-1 well will be in approximately 1,017 metres water depth and 112 kilometres offshore Gambia in the highly prospective Mauritania-Senegal-Guinea-Bissau-Conakry (MSGBC) Basin.

The A2 and A5 prospects and leads showing the Samo-1 well location.

It will be drilled using Stena DrillMax – a state of the art, dual mast, dynamically positioned, deepwater drillship with a rig crew that has extensive international and regional West African experience.

Two primary targets

The prospect has two main targets - an upper reservoir interval which contained liquid-rich gas at SNE and a lower reservoir interval which was oil-bearing at SNE.

These target reservoir intervals are assessed to have a combined prospective resource of 825 million barrels of oil.

Seismic depth section through Samo prospect showing geological interpretation.

Good quality reservoirs have been interpreted at both levels at the proposed location and the well will be drilled on the crest of the structure.

Norman said: “FAR retains a 40% working interest in the project and will be operating the well on behalf of the joint venture."

 

“If successful, Samo-1 will add significantly to the contingent resource base of FAR and has the potential to dwarf the value of FAR’s portfolio in Senegal,” she said.

PETRONAS farming in

FAR’s high rating of the prospect is shared by oil major PETRONAS, which is farming-in to the project in a deal worth up to US$53.6 million.

The world-class company is buying 40% of FAR’s 80% working interest in the Samo-1 exploration well by paying for 40% of total well costs to a cap of US$45 million.

Samo-1 well is planned to spud in early quarter four of 2018 and is expected to take about 40 days to drill on a trouble-free basis.

]]>
Wed, 22 Aug 2018 13:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203351/far-ltd-selects-location-for-the-samo-1-oil-and-gas-exploration-well-offshore-the-gambia-203351.html
<![CDATA[News - FAR shares up 75% in 2018 with more potential catalysts to come ]]> https://www.proactiveinvestors.com.au/companies/news/201499/far-shares-up-75-in-2018-with-more-potential-catalysts-to-come-201499.html FAR Ltd (ASX:FAR) shares are up over 20% in the past week and up 75% in 2018 with several pieces of news flow expected.

The oil and gas company is focused on its portfolio of offshore assets in West Africa.

In 2014 it participated in the world’s largest oil discovery for that year in the SNE oilfield located offshore Senegal.

Since 2014, the Senegal joint venture has drilled 11 from 11 successful oil wells offshore Senegal and FAR has also made four independent discoveries.

  READ: FAR prepares to drill for oil offshore The Gambia, backed by oil major PETRONAS

An upcoming potential catalyst for FAR are details on the location of the planned Samo-1 offshore oil well within Block A2 located offshore The Gambia in West Africa.

Industry expert Wood Mackenzie has ranked the Samo-1 well as one of the key wells to watch around the globe for 2018.

Oil major PETRONAS is farming-in to the project in a deal worth up to US$53.6 million.

FAR is the operator and has a 40% working interest in the A2 and A5 petroleum licences with PETRONAS holding 40% and Erin Energy 20%.

Evaluation report for Senegal project

In other upcoming potential catalysts, an evaluation report for the Senegal project is also expected, which will include a joint venture view on the economics of the project.

In addition to this, the terms of reference are also expected in the arbitration process with Conoco Phillips.

The arbitration process is related to FAR’s claim to pre-emptive rights over a 35% stake in the SNE oilfield that was sold to Woodside Petroleum Ltd (ASX:WPL).

The terms of reference will indicate the timeline in which the matter will be heard.

]]>
Wed, 25 Jul 2018 12:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201499/far-shares-up-75-in-2018-with-more-potential-catalysts-to-come-201499.html
<![CDATA[Media files - FAR Ltd turns to The Gambia as SNE oilfield approaches commercialisation milestone ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9604/far-ltd-turns-to-the-gambia-as-sne-oilfield-approaches-commercialisation-milestone-9604.html Mon, 18 Jun 2018 15:50:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9604/far-ltd-turns-to-the-gambia-as-sne-oilfield-approaches-commercialisation-milestone-9604.html <![CDATA[News - FAR prepares to drill for oil offshore The Gambia, backed by oil major PETRONAS ]]> https://www.proactiveinvestors.com.au/companies/news/197595/far-prepares-to-drill-for-oil-offshore-the-gambia-backed-by-oil-major-petronas-197595.html FAR Limited’s (ASX:FAR) high rating of the Samo oil prospect offshore The Gambia is shared by oil major PETRONAS, which is farming-in to the project in a deal worth up to US$53.6 million.

The world-class company is buying 40% of FAR’s 80% working interest in the Samo-1 exploration well by paying for 40% of total well costs to a cap of US$45 million.

It will also pay cash consideration of about US$8.6 million excluding its 40% share of ongoing operational and well costs until completion.

Industry expert Wood Mackenzie has ranked the Samo-1 well as one of the key wells to watch around the globe for 2018. The well will be drilled in the second half of the year.

READ: FAR advances opportunities in Senegal and The Gambia as oil price hits multi-year highs

FAR will remain operator through the drilling of the planned Samo-1 well, which is scheduled to begin by the end of 2018, and retain 40% working interest.

The farm-in agreement assigns PETRONAS a 40% interest in each of the highly prospective offshore petroleum licences, Blocks A2 and A5.

“Testimony to quality of opportunity”

Managing director Cath Norman said, “It is a testimony to the quality of the Gambian opportunity that FAR was able to farm-out to a company of the calibre of PETRONAS and we look forward to working with them going forward.

“The deal will formally close on Government of The Gambia approval, which is expected to by the end of the June quarter.”

FAR is the operator and has a 40% working interest in the A2 and A5 petroleum licences with PETRONAS holdings 40% and Erin Energy 20%.

55% chance of success

The Samo prospect in Block A2 is assessed by FAR to contain a best estimate (P50) prospective resource of 825 million barrels of oil with a 55% chance of success.

This high success chance is due to the adjacent discovery at SNE, in the neighbouring waters offshore Senegal, which is on trend and shares many similarities with Samo.

The Samo prospect is believed to be an extension of the SNE trend.

It is also attributable to the confidence FAR has developed in exploring in the play fairway, which is yet to experience a dry well.

First exploration well offshore since 1979

The company is making steady progress in preparation for the Samo-1 well, which will be the first exploration well offshore The Gambia since 1979.

It has awarded a contract to drill the Samo-1 well using the Stena DrillMAX drillship.

Attractive drilling contract

This has been finalised at a very attractive operating day rate in line with 2017 rates.

Stena DrillMAX is a state of the art, dual mast, dynamically positioned, deepwater drill ship with a rig crew that has extensive international and regional West African experience.

The vessel is a harsh environment dynamically positioned DP class 3 drillship capable of drilling in water depths up to 3,000 metres and at drilling depths to 10,700 metres.

“We are delighted to have secured the Stena DrillMAX,” Norman said, “as it was our rig of choice given it completed a highly successful, efficient and under budget drilling campaign for our Senegal joint venture in 2017.

“The FAR drilling management team consists of several personnel involved with the Senegal joint venture’s previous drilling campaigns,” she said.

“FAR was recently described as possibly Australia's best oil explorer for 10 years and we hope to add to our discovered, recoverable resource base with the Samo-1 exploration well.”

Healthy cash position

The company ended the March quarter with a healthy cash position of $40.38 million, which was ahead of forecast by $6 million, largely as a result of slowed expenditure in Senegal.

“A net spend of $100,000 is expected this quarter because we are expecting an inflow of $18.1 million from settlement of the PETRONAS farm-in,” Norman said.

]]>
Thu, 24 May 2018 13:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197595/far-prepares-to-drill-for-oil-offshore-the-gambia-backed-by-oil-major-petronas-197595.html
<![CDATA[News - FAR advances opportunities in Senegal and The Gambia as oil price hits multi-year highs ]]> https://www.proactiveinvestors.com.au/companies/news/196963/far-advances-opportunities-in-senegal-and-the-gambia-as-oil-price-hits-multi-year-highs-196963.html FAR Ltd (ASX:FAR) is progressing pre-development activities for the first phase of its world-class SNE oil field development offshore Senegal.

The company is also expected to drill the Samo-1 well in late 2018, which will be the first exploration well offshore The Gambia since 1979.

Both projects are progressing well, supported by buoyant oil prices which recently hit multi-year highs on renewed US sanctions against major crude exporter Iran amid an already tightening market.

SNE oil field offshore Senegal

FAR is progressing pre-development activities at the SNE oil field, offshore Senegal, along with joint venture operator Cairn Energy (LON:CNE) and others.

FAR has a 15% interest in the 350-square kilometre SNE field, which is estimated to contain 640 million barrels of oil.

The project has passed through the concept select stage and tenders have been released for the floating vessel and subsea infrastructure equipment.

Final investment decision expected by mid-2019

The development concept being considered by the joint venture is a standalone floating production storage and offtake (FPSO) facility offshore Senegal with subsea wells and infrastructure.

The project will be designed to allow flexibility for anticipated subsequent development phases with subsea tiebacks from other reservoir intervals and fields.

FAR is targeting an initial production rate of about 100,000 barrels of oil per day (bopd) and estimates up to 25 wells in the initial development phase.

The joint venture aims to submit the SNE Field Evaluation Report to the Senegal government by the end of June 2018 and the Exploitation Plan for development in September 2018.

FAR is targeting a final investment decision in mid-2019 and first oil between 2021 and 2023.

Offshore petroleum licences in The Gambia

FAR is the operator and has an 80% working interest in the highly prospective petroleum licences, A2 and A5 blocks offshore The Gambia, where they will be drilling the Samo-1 exploration well scheduled for late 2018 in the Samo prospect.

FAR estimates the Samo prospect to contain a best estimate, prospective resource of 825 million barrels of oil with a 55% chance of success (CoS).

The high chance of success is due to the adjacent discovery at SNE which is on trend and shares many similarities with the Samo prospect and the confidence FAR has developed in exploring in the play fairway which is yet to experience a dry well.

The company is making steady progress at the project and has awarded a contract to drill the Samo-1 well using the Stena DrillMAX drillship.

The deal has been finalised at a very attractive operating day rate in line with 2017 rates when the Stena DrillMAX successfully completed FAR’s 2017 drilling campaign offshore Senegal.

PETRONAS farm-out

FAR has signed a farm-out deal with PETRONAS which will fund 80% of the total well costs of the Samo-1 exploration well up to a maximum total cost of US$45 million and pay other consideration to FAR of US$8.6 million.

As a result, FAR will remain operator through the drilling of the Samo-1 well and retain a 40% working interest.

The PETRONAS deal will formally close on receiving The Gambia government’s approval, which is expected in the June 2018 quarter.

Significantly, the farm-out to a company of the calibre of PETRONAS is a testimony to the quality of the Gambian opportunity.

Oil surges past US$70

The crude oil price recently rose to three-year highs past US$70 after US President Donald Trump revealed plans to withdraw from the Iran nuclear deal.

FAR’s share price has been increasing along with the oil price and is trading near 12-month highs of 10 cents.

Well-funded for exploration

FAR has entered the June 2018 quarter with a healthy cash position of $40 million.

The company has estimated a net spend of only $100,000 this quarter, as it is expecting an inflow of $18.1 million from the settlement of the PETRONAS deal.

]]>
Tue, 15 May 2018 13:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196963/far-advances-opportunities-in-senegal-and-the-gambia-as-oil-price-hits-multi-year-highs-196963.html
<![CDATA[News - FAR Limited gets ready to raise ]]> https://www.proactiveinvestors.com.au/companies/news/175963/far-limited-gets-ready-to-raise-175963.html FAR Limited (ASX:FAR) has been granted a trading halt by the ASX this morning, with its shares placed in pre-open.

FAR requested the halt pending details of a capital raising.

The halt will remain in place until the opening of trade on Friday 7th April 2017, or earlier if an announcement is made to the market.

]]>
Wed, 05 Apr 2017 10:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/175963/far-limited-gets-ready-to-raise-175963.html
<![CDATA[News - First Australian Resources looks to next step in oil quest, offshore Senegal ]]> https://www.proactiveinvestors.com.au/companies/news/152619/first-australian-resources-looks-to-next-step-in-oil-quest-offshore-senegal-1601.html Shell has advised First Australian Resources (ASX: FAR) of the completion of the Data Acquisition phase of the Control Source Electro Magnetic (CSEM) Data Acquisition and Geophysical Evaluation Programme over part of FAR's Licence Area in Offshore Blocks in Senegal, West Africa. 

A number of drilling prospects have already been identified by FAR and its partner Petrosen.

The CSEM phase was funded by Shell and conducted using the MV Boa Thalassa, the world's first purpose built EM survey vessel, launched in December 2008 and chartered by EMGS under a long-term contract. Typically, a potential reservoir is identified with seismic data, and CSEM can then be used to analyse its resistivity. The technique seeks to detect the potential resistivity contrast between oil or gas-saturated rocks, and those with significant water content.

The objective of the programme is designed to enable Shell to determine whether or not to exercise an option to acquire a 70 percent interest in the Licence Area and enter the second renewal period that includes a well commitment. Shell has extensive experience worldwide of this technique, and is one of the largest users of CSEM, having undertaken more than 120 surveys.

Shell has 90 days from the completion of the Data Acquisition phase to decide whether to exercise the Option. FAR has been advised by Shell that the Data Acquisition phase was completed on 28 May 2009.

]]>
Mon, 01 Jun 2009 12:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/152619/first-australian-resources-looks-to-next-step-in-oil-quest-offshore-senegal-1601.html
<![CDATA[News - First Australian Resources completes sale of China interests ]]> https://www.proactiveinvestors.com.au/companies/news/152618/first-australian-resources-completes-sale-of-china-interests-1250.html First Australian Resources (ASX:FAR) has announced an agreement to sell its 5 percent interest in Beibu Gulf Block 22/12 has now completed and the first tranche payment of US$2million has been received.

The remaining tranches of the US$8million sale price are payable as follows:

1. US$3 million upon approval of an Oilfield Development Program (“ODP”) or if commercial development of the project proceeds
2. US$3 million once the project has produced 1 million barrels of oil (gross).

The sale involves the disposal of FAR’s wholly owned subsidiary Oil Australia Pty Ltd as this was the entity that holds the Beibu Gulf Interests.

The Company has recently reached in principle agreement to raise up to $3.5 million through the placement of up to 70 million shares at $0.05 per share.

First Australian Resources has also executed an Agreement with Shell Exploration Company B.V. (Shell) to conduct an exploration programme in respect of Sangomar Offshore, Rufisque Offshore and Sangomar deep Offshore Blocks in Senegal, West Africa.

]]>
Thu, 16 Apr 2009 15:08:00 +1000 https://www.proactiveinvestors.com.au/companies/news/152618/first-australian-resources-completes-sale-of-china-interests-1250.html
<![CDATA[News - First Australian Resources increases interest in oil block in Senegal ]]> https://www.proactiveinvestors.com.au/companies/news/152617/first-australian-resources-increases-interest-in-oil-block-in-senegal-0712.html First Australian Resources (ASX:FAR) is pleased to announce that following meetings held in Dakar last week it has received formal approval from Petrosen (Senegal’s National Oil Company), to increase its working interest to 90 percent and assume Operatorship under the Contract for Exploration and Hydrocarbon Production Sharing covering the Rufisque and Sangomar and Sangomar Deep offshore blocks.

Following meetings with Petrosen, a meeting was also held with the Minister of Energy for the Republic of Senegal to confirm FAR’s appointment as Operator, its increased working interest and to provide an activity update since Ministerial approval of a one year extension to the First Renewal Period was granted.

FAR is pleased to advise that following the grant of the extension and as foreshadowed in earlier ASX releases it has received a third written offer from a major to participate in the exploration of these offshore blocks. Negotiations are continuing.

The increased interest in the blocks has placed FAR in a stronger negotiating position in the farmout process that was delayed by the need to obtain an extension. FAR is seeking to be free carried through the drilling of the first exploratory well.

]]>
Fri, 23 Jan 2009 00:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/152617/first-australian-resources-increases-interest-in-oil-block-in-senegal-0712.html