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FAR secures $146 million equity for development capex to first oil in Senegal

FAR is developing one of the largest offshore oil discoveries of the last 10 years, which post project delivery in early 2023 is expected to make FAR one of the largest ASX-listed oil producers.

FAR Ltd - FAR secures $146 million equity for development capex to first oil in Senegal
A share purchase plan to existing shareholders will raise up to a further $30 million

FAR Ltd (ASX:FAR) has secured $146 million from institutional and sophisticated investors via a conditional placement of shares at 4.25 cents each.

In addition, FAR will conduct a share purchase plan (SPP) to existing eligible shareholders to raise up to a further $30 million at the same price as the placement.

The proceeds from the placement form part of the planned financing package to fund FAR’s capex to first oil from the Sangomar Oil Field development, offshore Senegal.

The shares issued under the placement are conditional upon receipt of a credit approved term sheet for an underwritten US$350 million senior debt facility by December 31, 2019.

The placement is also subject to a shareholder vote to be held at a general meeting to be held on or around January 16, 2020.

New shares issued under the placement will represent about 35.4% of the enlarged share capital of FAR.

Along with FAR’s existing cash reserves, a US$350 million senior debt facility, and a junior debt facility of up to US$150 million, proceeds from the placement will be used to fund FAR’s share of capex to first oil of US$492 million (which includes a 10% contingency).

The Sangomar Oil Field will be developed using a simple and conventional development concept which involves 23 subsea production and injection wells tied back to a standard FPSO.

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