Two weeks after it voluntarily asked the Australian Stock Exchange (ASX) to suspend trading of its stocks, FAR has announced that the suspension continues
The request was made on September 14, 2020 to allow ASX to review FAR’s Half Year Accounts and raise certain queries with FAR. It was meant to run for 10 business days.
“Since that date ASX and FAR have exchanged communications and ASX currently expects to complete their process later this week”, FAR says in a release out today September 28, 2020.
Why should we care?
FAR holds equity in the Sangomar project, Senegal’s first oilfield development, operated by Woodside Energy. It also drilled the first well in The Gambia in 40 years, although Samo-1 turned out to be a disappointing dry hole.
But FAR is very broke. It has reported that the COVID-19 pandemic and the falling oil price impacted its ability to finalise financing arrangements for its share of the oilfield development and has made the decision to commence a sale process for all or part of its working interest in parallel with investigating alternative sources of finance. While it is talking with third parties evaluating its Senegal asset for the purpose of sale it has reported that In the event that it is unsuccessful in selling its Senegal asset, “such circumstances would indicate that a material uncertainty exists” that may cast significant doubt as to its continuation as a going concern.
In the meantime, however, FAR says the Voluntary Suspension from trading on ASX “remains in place until a further announcement in respect of the Half Year Accounts is made”.