FAR Ltd and the wholly owned subsidiary FAR Gambia Ltd said it has 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”).

FAR has acquired a further 50% interest in Gambia Blocks A2 and A5 giving the Company a 100% working interest as the commitment to drill an exploration well during the next two-year contract term removed.

FAR has further initiated a process to find partners to fund the forward exploration programme with emergent of new laboratory analysis has shown  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.”

Australia-based oil & gas exploration and development firm FAR has acquired an additional 10% interest in the Blocks A2 and A5, located offshore the Republic of The Gambia.

With the acquisition, the total working interest of the company is expected to reach 50% interest and would retain the operatorship of the blocks. The interest is held by its subsidiary, FAR Gambia.

FAR management said: “FAR is very pleased to conclude the discussion with the Government of The Gambia which has resulted in the signing of new Licences for the A2 and A5 blocks.

“In addition to FAR acquiring the additional 10% equity in these blocks, the new Licences reset the exploration periods and provide more time and options to fully explore this acreage. FAR is very encouraged by the high prospectivity in these Gambian blocks and will immediately commence plans for seismic acquisition and drilling in 2020.”

The Government of Gambia has issued new licences for the Blocks A2 and A5, under which FAR Gambia and PC Gambia, a subsidiary of PETRONAS each hold 50% participating and paying interest.

Under the new licence, a three-year initial exploration period will start immediately, in addition to two optional extension periods for two years.

The new licencing terms, which are effective from 1 October, also includes a commitment to drill one well in the first two years in either Block and to acquire, process and interpret 450km² of 3D seismic in the first three years.

The two blocks are adjacent to FAR’s SNE oil field discovery

Covering 2,682km² area, the Blocks A2 and A5 licence areas are located adjacent to FAR’s SNE oil field discovery which is advancing towards development and expected to produce first oil in 2022.

FAR said that it has carried out wide-ranging geotechnical studies on the SAMO-1 well data, which has led to the identification of additional target intervals to those mapped prior to drilling.

In addition, the company is continuing the work to map and quantify the resulting prospects.

The company is planning to conduct a 3D seismic survey in late 2019 to further outline the identified prospects and is planning to drill a well in 2020.