In spite of two disappointing dry holes in the space of three years, Australian minnow FAR has taken 100% ownership in two Blocks in The Gambia.
The interest was acquired from Petroliam Nasional Berhad (PETRONAS), the Malaysian state hydrocarbon company which had co-financed the two wells.
But while FAR takes up all the stakes, it “has initiated a process to find partners to fund the forward exploration programme” and convinced its host Government to remove the Commitment to drill an exploration well during the next two-year contract term
FAR keeps seeing its disappointing drill programme in the Gambia in bright terms: “new laboratory analysis has positive implications for the Panthera Prospect directly up-dip of Bambo-1”, the company explains.
FAR shook up its executive management in March 2022, ousting its CEO Catherine Norman and replacing her with Independent Chairman Patrick O’Connor to oversee the business during a period of transition and “bringing in fresh perspective”. The next two-year license term for Blocks A2 and A5 is due to commence on 1 October 2022 and “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”.
Data room Opened
FAR says it has opened a data room “for suitably 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”, adding that “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”.
