FAR Ltd

Woodside agreed a provisional 2025 contingent payment of US$23.7M, expected April 2026. FAR plans a 35 cent per share capital return (about A$32.3M), subject to approval at the 28 May 2026 AGM. Maximum future contingent payment becomes US$19.8M.

capital raising announcement

FAR agreed with Woodside to settle the US$6,029,899 claim by paying it in full promptly, from funds already held back. Woodside will refund the amount if it recovers the costs from Senegal's ministry before 31 December 2030. Resolves the dispute.

material agreement

Woodside has made a formal claim of US$6,029,899 against FAR, demanding payment within 14 days, after Senegal's ministry finally refused to allow certain costs. This turns the earlier potential indemnity into a real claim, within the US$6.8M cap. FAR disputes liability and reserves its rights.

material agreement

Woodside will pay a provisional US$11.5M in May 2025, and FAR plans an 8 cent per share capital return (about A$7.4M), subject to approval at the 30 May AGM. Funds are held back for the possible Woodside indemnity claim, which FAR does not concede.

capital raising announcement

FAR estimates the 2024 Woodside contingent payment at about US$11.5M, based on Woodside's 13.3 MMbbl 2024 entitlement production. This is the first annual tranche of the up-to-US$55M. Exact amount and timing depend on an ongoing volume reconciliation.

material agreement

Woodside flagged a possible indemnity claim against FAR after a Senegal ministry audit rejected some pre-2014 costs. FAR's exposure under the 2021 sale agreement is capped at US$6.8M, and claim notice must come by June 2025. No claim yet made.

material agreement

September quarter: several offers for the Woodside payment were received, but the board judged them not attractive enough versus holding it. Sangomar reached 100,000 barrels a day nameplate capacity. Cash was US$2.0M.

quarterly activities report

Half-year to 30 June 2024 showed a profit of US$40.8M against a prior loss of US$2.9M. The text does not explain the cause in the extract. Net tangible assets were 47.19 cents per share (3.21 prior). Sale process for the Woodside payment is under way.

half year report

Woodside announced first oil from Sangomar in Senegal on 11 June 2024, on the mid-2024 target. Woodside expects to make the contingent payments to FAR as previously contemplated, up to US$55M.

production update

Senegal's tax authority accepted there was no capital gain on the 2021 sale to Woodside, so FAR no longer faces the roughly US$4M tax claim notified in November 2023. Resolves that open risk.

regulatory community update

FAR gave notice to surrender its Gambia Blocks A2/A5 (effective 17 Feb 2024) after remarketing found no partner, ending that thread. Gneiss Energy was appointed to prepare a sale of the up to US$55M Woodside payment. Cash was US$2.9M.

quarterly activities report

The Senegal tax authority has issued a notice with a capital gains tax claim of about US$4M on FAR's 2021 sale to Woodside. FAR would likely have to indemnify Woodside and plans to object. Its liability is uncertain, and the notice is unexpected since the sale agreement had been stamped as tax exempt.

regulatory community update

Woodside now targets Sangomar first oil in mid-2024, not late 2023; project 88% complete. FAR still expects a first Woodside contingent payment in early 2025 and the full US$55M before the 2027 long stop.

production update

FAR proposes a 40 cent per share capital return (about US$25M of roughly US$30M cash), to go to a shareholder vote in mid-August. The on-market buy-back is terminated. No new business initiative offering better returns had been identified.

capital raising announcement

FAR bought PETRONAS's 50% of Gambia Blocks A2 and A5, taking it to 100%, and the government removed the obligation to drill a well in the next two-year term from 1 Oct 2022. FAR opened a data room seeking partners to fund work; new Bambo-1 lab results favour Panthera.

farm in farm out completion

The board will keep the up-to-US$55M Woodside contingent payment inside FAR rather than demerge it, resolving the Meridian proposal. It now seeks a Gambia farm-out with a well carry or outright sale, with a demerger of those assets as fallback.

other

Managing Director Catherine Norman was given termination notice and resigned as a director. Chairman Patrick O'Connor will oversee the business during a transition, with the board promising a strategy update to reflect asset value in the share price.

director officer appointment

The Samuel Terry 45c takeover offer closed with its conditions unsatisfied or waived, so acceptances will not be processed. This ends the bid FAR's directors had recommended rejecting.

business combination

FAR has begun withdrawing from its Guinea Bissau blocks after farm-down efforts with operator PetroNor failed. It expects no new material costs, impaired US$2.7M in 2021, and a contingent liability of up to US$13M no longer applies.

asset acquisition disposition

After reviewing the Bambo wells, FAR high-graded three Gambia prospects (Panthera, Jatto, Malo); the four mapped prospects total 1,594 MMbbl best-estimate unrisked (100% basis). FAR will seek a farm-down for a well carry in late 2023 and cut its 2022 budget about 40% to US$5.7M.

resource reserve update

Meridian, a 19.28% holder, rejected the Samuel Terry 45c bid as opportunistic and wholly inadequate, subject to conditions and ending 14 March 2022. It suggests a pro-rata distribution of rights to the up-to-US$55M Woodside contingent payment. FAR is investigating whether that is feasible.

business combination

Samuel Terry Asset Management, holding about 4.9%, announced an off-market takeover bid at A$0.45 cash per share, a 23.3% premium to the A$0.365 close. It needs 50.1% acceptance and is conditional. The offer is expected to open 14 February and close 14 March.

business combination

Bambo-1 and its side-track (3,317m) found oil shows but no live oil columns and no moveable oil, in poor-quality reservoirs with possibly breached traps. FAR says the shows indicate nearby potential. The well is being plugged and abandoned, within the amended budget.

drilling result

Bambo-1 reached 3,216m with oil indications in cuttings and logs, but fluid losses halted drilling. FAR will plug and side-track, raising well cost from US$51.4M to US$61.27M (US$4.9M extra net to FAR). Forecast post-well cash is US$37M, with completion expected by end of December.

drilling progress report

Bambo-1 has been spudded offshore The Gambia by the Stena IceMax, in 930m of water, targeting about 3,400m depth over roughly 30 days. It tests 1,118 MMbbl of unrisked prospective resource (559 net to FAR), with chance of success 7% to 36% per horizon.

drilling spud

Shareholders approved the A$0.80 per share cash return of capital on 15 September. Shares trade ex-return from 20 September, with the record date 21 September and payment 28 September. An ATO class ruling is still pending.

capital raising announcement

FAR has US$127M cash and no debt after the Senegal sale. It plans to return about A$80M (A$0.80 per share) to shareholders, subject to a vote, and has applied for ASX reinstatement on 23 July. It remains an oil and gas explorer.

capital raising announcement

FAR reports US$128M cash, no debt, and a planned A$0.80 per share capital return. Bambo-1 spud is planned for late October or early November. FAR will rationalise its portfolio, seek to farm out or sell Guinea-Bissau, and sell or drop WA-458-P by mid-2022.

investor presentation

ASX confirms FAR's suspension, in place since September 2020, will lift from the start of trading on 23 July 2021 following completion of the Senegal sale.

listing compliance notice

Woodside says it completed buying FAR's Senegal RSSD interest. The final payment to FAR was about US$126M after adjustments and remedying FAR's defaults; up to US$55M more is contingent on oil prices and first-oil timing. Woodside's stake rises to 82%.

asset acquisition disposition

FAR confirms the Senegal RSSD sale to Woodside is complete and it received US$126M, ending the long-running sale process. Up to US$55M more is contingent on oil price and first oil (targeted 2023). FAR can now seek ASX reinstatement.

asset acquisition disposition

Chairman Nicholas Limb (director since 2011) and Reg Nelson resigned, citing board renewal as the Senegal sale nears completion. Robert Kaye SC and Patrick O'Connor join as independent non-executive directors, following Tim Woodall's earlier exit.

director officer appointment

FAR signed a rig contract with Stena Drilling for Bambo-1 in The Gambia, with spud between 1 October and 30 November 2021. The well targets 1,118 MMbbl best-estimate prospective resources (559 net), with chances of success of 7% to 37%.

drilling scheduled

FAR satisfied the third-party contract termination condition and received Senegal Minister approval for transferring its RSSD interest to Woodside. Completion is targeted within weeks.

asset acquisition disposition

Shareholders approved the sale of FAR's Senegal RSSD interest to Woodside, with 97.25% in favour. FAR must still finish the remaining conditions and completion tasks.

asset acquisition disposition

Remus told FAR it cannot lodge a Bidder's Statement because Guernsey regulators suspended its registration. It also said the offer was not properly authorised and it lacks funding. FAR concludes the 2.1c offer won't proceed and still recommends the Woodside sale.

business combination

Lukoil told FAR its 2.2c proposal will not proceed to a binding offer, ending that alternative to the Woodside sale. Directors continue to support the sale and may reconsider if a Remus or other offer emerges.

business combination

Russia-based Lukoil made a non-binding proposal to buy all of FAR at 2.2c cash per share (A$220M), subject to due diligence and board approval. FAR postponed the 18 February Woodside sale meeting. FAR is in default on January (US$19.9M) and February (US$24M) Sangomar cash calls.

business combination

FAR signed the sale and purchase agreement with Woodside on 19 January 2021, on the same terms as the earlier ONGC deal. Shareholders vote on 18 February 2021. The non-binding Remus proposal is conditional on this sale not occurring.

material agreement

Remus says it is finalising funding for its 2.1c offer, which is conditional on the Woodside sale not occurring, and may offer a US$50M bridge loan. FAR postponed the sale meeting to 18 February 2021. After paying cash calls, FAR's cash is about US$10.3M.

business combination

FAR received a conditional, non-binding proposal from Remus Horizons to buy 100% of FAR at 2.1c cash per share, conditional on the sale meeting being rescheduled. FAR postponed the 21 December meeting to 21 January 2021 and hired Baker McKenzie.

business combination

Woodside exercised its pre-emption right over FAR's Sangomar interest on the same terms as ONGC: US$45M, working capital reimbursement and contingent payments capped at US$55M. Still needs Senegal and FAR shareholder approval. Woodside's stake would reach 82% in the exploitation area.

joint venture update

FAR agreed to sell its entire Sangomar interest to ONGC Videsh for US$45M plus US$66.58M working capital reimbursement, plus contingent payments capped at US$55M. FAR cured its cash call default. It expects about US$130M cash at completion. Needs shareholder, Senegal and pre-emption approvals.

asset acquisition disposition

ASX says FAR stays suspended until the auditor's disclaimer of review opinion is removed, with no timeframe. FAR remains focused on selling its Sangomar interest, with details confidential.

listing compliance notice

At its own request FAR is suspended while ASX reviews the half-year accounts, which carry an auditor's disclaimer of review conclusion. FAR says it decided to sell its main asset after the oil price fall; the sale is ongoing with multiple parties. Suspension to last until 28 September at the latest.

listing compliance notice

Half-year accounts to 30 June 2020 were lodged. Per FAR's later ASX letter, the auditor gave a disclaimer of review conclusion because of uncertainty over the timing and price of the Senegal sale and its carrying value. Full text was truncated, so no figures are given here.

half year report

Petrosen's increase in Sangomar Exploitation Area interest from 10% to 18% is confirmed, cutting FAR's stake from 15% to 13.67%, as long expected. Petrosen owes FAR US$4.79M reimbursement at end June. FAR still pursues a sale.

asset acquisition disposition

FAR did not pay its latest Sangomar cash call and was notified it is in default. It has six months to pay or forfeit its interest without compensation. FAR is still seeking to sell all or part of the stake, and cut staff and took 20% pay cuts.

debt default or forbearance

March quarter: cash US$80.3M. Debt financing failed, FAR says it cannot fund its share of the US$163M 2020 Sangomar budget alone, and has started a process to sell all or part of its Senegal interest. Gambia drilling deferred.

quarterly activities report

Lead banks said they cannot syndicate the senior Sangomar loan, and the junior and mezzanine facilities are also unlikely to complete 'for the foreseeable future'. FAR had about A$150M cash and no debt. The board began a review of strategic alternatives.

debt default or forbearance

FAR is conserving cash (~A$150M at end February) because of COVID-19 and the oil price crash. It suspends Gambia drilling plans (well not obliged until Q3 2021) and says financier talks are 'materially compromised'. Sangomar costs and timeline are under review.

other

The ICC tribunal ruled that the Senegal joint operating agreement gave FAR no pre-emption right over the 2016 sale of Woodside Energy Senegal BV (formerly ConocoPhillips Senegal BV), the holder of the 35% interest. FAR said it was analysing the lengthy award and evaluating its position.

resource reserve update

FAR signed a binding MoU with Glencore to market all its Sangomar crude, expected for 7 years after first oil (minimum 20M barrels) while Glencore remains a lender. Development drilling is planned from end Q1 2021. The ICC approved the draft arbitration award.

material agreement

FAR took FID on Sangomar Phase 1 and secured an underwritten US$300M senior loan (Macquarie, BNP Paribas, Glencore; 7 years, LIBOR+7.75%). It books 28MMbbl 2P net reserves (231MMbbl gross). Shareholders approved the placement. Junior debt still to be chosen.

resource reserve update

Senegal approved the Sangomar Development and Exploitation Plan and granted the Exploitation Authorisation, with first oil targeted early 2023. This is the government approval FAR had awaited. Execution still needs the Host Government Agreement and key contracts.

regulatory community update

FAR's board backed taking FID on 19 December, conditional on binding senior debt terms and the operator's FID. Senior debt talks reached a US$300M initial limit (down from US$350M), with two banks credit-approved and a third due the week of 6 January.

debt financing

FAR completed a conditional A$146M placement at A$0.0425 a share (21.3% below last close), plus a share purchase plan of up to A$30M, to fund its Sangomar capex. It needs a 16 January 2020 shareholder vote and a credit-approved US$350M senior debt term sheet by 31 December.

capital raising announcement

The final Sangomar (formerly SNE) Development and Exploitation Plan was submitted to the Senegal government on 2 December 2019, covering 645mmboe (485mmbbl oil, 160mmboe gas). This completes the plan resubmission; approval and FID are still pending.

regulatory community update

FAR will pursue a bank loan for SNE and has appointed Macquarie to arrange up to US$350M over 7 years, at under 10% all-in interest, secured on its 13.67% SNE interest with a FAR parent guarantee. Not committed: credit approvals are targeted by end 2019. This picks the bank-debt route from earlier options.

debt financing

FAR releases SNE development economics: net production 13,670 bbl/d, unlevered IRR above 30%. The FPSO is now purchased rather than leased, so more of the capex will likely be debt funded. Government approval and FID are now expected in December 2019, first oil late 2022.

resource reserve update

After studying Samo-1 data, FAR assesses Gambian prospective resources at 1.2 billion barrels (best estimate, unrisked, gross), 621 million net to FAR. That is up from the 938mmbbl earlier figure, which had been 375 net. The Soloo, Bambo, Jobo and Malo prospects are still unproven; a 2020 well is planned.

resource reserve update

New Gambian A2/A5 licences issued, lifting FAR to 50% (from 40%) and keeping it operator, with PETRONAS at 50%. This resolves the licence extension question. Terms: three-year initial period, one well within two years, 450km2 3D seismic, US$2.25M net signature bonus.

farm in farm out completion

Tim Woodall, a non-executive director since August 2017 who had advised on SNE financing under a special arrangement, became Executive Director, Commercial from 1 September 2019. He is paid $625,000 a year including super and takes charge of SNE financing and business development.

director officer appointment

CNOOC will take 55.55% of Svenska's Guinea-Bissau licences, converting to 50% on a commercial discovery. FAR keeps its 21.42%. Drilling of the Greater Atum prospect (471mmbbls best estimate, gross) is targeted Q1 2020; closing expected Q3 2019 subject to government approval.

farm in farm out agreement

FAR raised about A$45M through a placement of 818.9M shares at 5.5 cents, a 1.8% discount to the last close. Funds go to its SNE share, the proposed 2020 drilling and Australian seismic. Shares on issue rise to about 6.28bn, so existing holders are diluted.

capital raising announcement

FEED has begun for SNE Phase 1, aimed at FID in 2019, and project financing has started. Phase 1 targets about 230mmbbl from 11 producers, 10 water injectors and 2 gas injectors, with a ~90,000 bbl/day FPSO and first oil in 2022.

material agreement

Samo-1 reached 3,240m and found the main targets water-bearing, a dry hole against the 825mmbbl prospect. Oil shows suggest an active charge. The Gambian licence was extended six months to June 2019 to evaluate results and plan further drilling.

drilling result

The SNE Development and Exploitation Plan was submitted to Senegal's government, as flagged earlier. It plans about 500mmbbl developed in phases, with plateau 100,000 bopd, first oil in 2022 and FID in 2019. FPSO tenders are under evaluation.

material agreement

Samo-1 was spudded in about 1,000m of water, with a planned depth of about 3,100m, testing the 825mmbbl prospect. It is the first offshore Gambian well in 40 years; FAR is operator with 40% and said it would update the market at key milestones.

drilling spud

The Gambian government approved assigning 40% of Blocks A2/A5 to PETRONAS, resolving the pending approval from the February deal. FAR keeps 40% and operatorship and receives about A$19M cash; PETRONAS funds 80% of Samo-1 costs up to US$45M.

farm in farm out completion

FAR signed a contract with Stena Drilling for the Stena DrillMAX drillship to drill Samo-1 in The Gambia in late 2018. The rig did the 2017 Senegal campaign; FAR says the day rate is in line with 2017 rates. Samo is 825mmbbl at 55% chance of success.

contract award

RISC-reviewed report puts the FAN discovery at 198mmbbl 2C contingent resource gross (27mmbbl net to FAR at 15%), and undrilled Senegal prospects at 673mmbbl. FID is now planned for 2019. A review of SNE is expected mid-year.

resource reserve update

FAR agreed to farm out 40% of Gambia Blocks A2/A5 to PETRONAS, keeping 40% and operatorship. PETRONAS funds 80% of Samo-1 well costs up to US$45M and pays about US$13.5M cash at completion. Subject to Gambian approval; well still targeted late 2018.

farm in farm out agreement

RISC audit supports 1.1 billion barrels of Gambia prospective resources (best estimate, gross, unrisked), 926mmbbl net to FAR. Samo prospect is 825mmbbl at 55% chance of success; Bambo 333mmbbl at 18%. Drilling planned late 2018.

resource reserve update

Guinea-Bissau government decree approved FAR's 21.42% participating and paying interest in the Sinapa and Esperanca licences and extended them to 25 November 2020. One well per licence, minimum US$3M gross each. Resolves the April amendments awaiting decree.

regulatory community update

SNE North-1 found hydrocarbons in at least three intervals, with over 24m gross column and over 16m net, 35° API oil, 15km north of SNE-1. Reached 2,837m, ahead of schedule and under budget. Commerciality is unassessed. Ends the 2017 campaign, 11 of 11 wells successful.

drilling result

FAN South-1 reached 5,343m and discovered oil, with 31° API samples recovered from Lower Cretaceous reservoirs. Commerciality is unassessed and being integrated with FAN-1. Rig now moves to SNE North-1, targeting 294mmbbl at 60% chance of success.

drilling result

The Gambian government approved FAR's acquisition of 80% and operatorship of Blocks A2 and A5 from ERIN. FAR pays US$5.18M upfront and funds up to US$8M of ERIN's share of a late-2018 well. Prospective resources exceed one billion barrels. Completes the March deal.

farm in farm out completion

Woodside said Senegal's energy minister issued a ministerial order confirming Woodside's participation in the joint venture. It rejects FAR's arbitration claim and will comment no further. This contradicts FAR's earlier point that no government approval had been notified.

joint venture update

FAR asked the International Chamber of Commerce in Paris to begin arbitration over its right to pre-empt ConocoPhillips' sale of its Senegal interest to Woodside. This moves the unresolved dispute into formal proceedings.

joint venture update

Woodside, buying ConocoPhillips' 35% of the Senegal blocks, said FAR will not support Woodside acting as SNE Development Lead. It says FAR's pre-emption claims lack merit and warns of possible delay to first oil. Escalates the existing dispute.

joint venture update

Drilling began on FAN South-1, the first pure exploration well offshore Senegal since the 2014 discoveries. It targets 134mmbbl of recoverable oil at an 18% chance of success, to an estimated depth of 5,317m.

drilling spud

SNE-6 proved the upper reservoirs are connected to SNE-5 about 1.6km away, flowing up to ~5,300 bopd, finishing under budget. FAR says this meets the final SNE appraisal objective. The joint venture plans to submit a development plan to government in 2018.

well test result

FAR announced FAN South-1, its first pure exploration well in Senegal since the 2014 FAN-1 and SNE-1 discoveries, to be drilled after SNE-6. Target is 134mmbbl best estimate with an 18% chance of success. SNE-6 has reached total depth, ahead of plan.

drilling scheduled

FAR completed its fully underwritten A$80M placement at 8.0c, a 4.8% discount, saying it was significantly oversubscribed. A$54M settles first; A$26M needs shareholder approval around 15 May. Cash after tranche 1 is over A$85M, no debt, funding FAR to the SNE final investment decision expected early 2019.

capital raising announcement

FAR launched a fully underwritten A$80M placement of 1,000M shares at 8.0c, a 4.8% discount. A$54M comes first and A$26M needs shareholder approval around 15 May. Funds Senegal work and the Gambia blocks. VR-1's deeper Aptian target showed hydrocarbons judged not commercially significant.

capital raising announcement

Guinea-Bissau licence terms revised: FAR's participating interest rises from 15% to 21.42% as Petroguin drops out until a commercial discovery, with licences extended to 25 November 2020. One exploration well per licence is required. Subject to Government Decree. Resolves the licence amendment talks.

material agreement

FAR signed a two-year Area of Mutual Interest agreement with CNOOC UK covering selected blocks offshore Senegal and The Gambia, to jointly evaluate and bid for new acreage. No specific asset or funding is committed in the text.

material agreement

FAR agreed to acquire an 80% interest and operatorship of Gambia Blocks A2 and A5 from ERIN Energy, adjacent to SNE. It pays US$5.18M upfront and funds up to US$8M of ERIN's share of a well planned late 2018. Subject to Gambian government approval.

farm in farm out agreement

VR-1 found a 97m gross oil column with the highest net pay and best lower-reservoir quality of any SNE well, making 8 of 8 successful wells. FAR expects a resource revision. The well is now being deepened toward the Aptian carbonate target.

drilling result

SNE-5 was drilled and flow tested 21 days ahead of schedule and below budget. Upper reservoir zones flowed up to 4,500 and 4,200 bopd, in line with or above expectations. VR-1 will now be drilled before SNE-6, at about A$2-3M extra cost to FAR.

well test result

FAR raised its undrilled Senegal prospective resources to 1,563mmbbl gross (234mmbbl net to FAR), over 50% more than the last review, audited by RISC. The increase comes from new 3D seismic interpretation. It follows the earlier 'over 1bn bbl' figure and closes the open prospective resource update.

resource reserve update

SNE-5 began drilling on 21 January 2017, about 2km south-east of SNE-3. It is the first of two firm wells with the Stena DrillMAX, to be flow-tested for deliverability and connectivity of upper reservoirs. SNE-6 follows immediately.

drilling spud

The Senegal joint venture signed a contract for the Stena DrillMAX drillship to drill two firm SNE appraisal wells (SNE-5 and SNE-6) from Q1 2017, plus option wells. Day rates are said to be significantly lower than with the Ocean Rig Athena. Tests aim to prove reservoir connectivity.

contract award

FAR assessed SNE as commercially viable, exceeding the roughly 200mmbbl minimum economic field size. Its concept is a standalone FPSO with 140,000 bopd plateau and first oil in 2022, a year later than earlier 2021 estimates. Breakeven is below US$40 per barrel; further appraisal drilling is expected late 2016.

resource reserve update

RISC raised SNE 2C contingent resources 14% to 641mmbbl gross (96mmbbl net to FAR), including BEL-1 and SNE-4 data. 1C is 348 and 3C 1,128mmbbl. This is the third upgrade since discovery, up 316% from the pre-drill 154mmbbl. A commerciality statement is due soon.

resource reserve update

FAR says ConocoPhillips failed to follow the joint operating agreement over its proposed Woodside sale, so in FAR's view (supported by legal advice) the pre-emption period has not started. Senegal's government urged an amicable solution. This complicates the Woodside deal and is a dispute with a partner.

joint venture update

Woodside agreed to buy ConocoPhillips' 35% Senegal interest for US$350m plus about US$80m completion adjustment, subject to Senegal government approval and partner pre-emption rights. FAR says its focus is unchanged and it is fully funded. Targeted close is year-end 2016.

asset acquisition disposition

SNE-4 appraisal well succeeded, finding a 102m gross oil column of 32 degree API oil in the eastern SNE field, 5km from SNE-3. It finished ahead of schedule and under budget, the drill ship is released, and drilling resumes in H2 2016. A resource review is due this quarter.

drilling result

SNE-4, the fourth appraisal well, spudded 5km south-east of SNE-1 in 940m of water, targeting 3,020m and about four weeks of work. FAR says the A$60m raising covers its expected obligations, possibly including two further contingent wells, subject to joint venture decision.

drilling spud

FAR raised A$60m via a placement of 705.9m shares at 8.5c, a 6.6% discount to the last close, to fund Senegal drilling and evaluation. About A$47m settles first; about A$13m needs shareholder approval at a 26 May EGM. Shares on issue will rise to about 4.41bn.

capital raising announcement

RISC raised SNE 2C contingent resources 20% to 561mmbbl gross (84mmbbl net to FAR), from 468mmbbl in February; 1C 277 and 3C 1,071mmbbl. It uses SNE-2 and SNE-3 data but not BEL-1; a further update is expected after BEL-1 and SNE-4.

resource reserve update

BEL-1 discovered gas in the Bellatrix prospect (8m net gas sandstones), confirming the Buried Hills play, and proved the SNE field's northern extent with a roughly 100m oil column. FAR's fifth hydrocarbon find from five wells; a fourth appraisal well, SNE-4, follows within days.

drilling result

BEL-1, the third well in the SNE appraisal program, has spudded in about 1,100m of water, targeting roughly 2,757m. It will test the untested Buried Hills play at Bellatrix and be deepened to appraise SNE's northern part. Completion is expected next month; tight-hole policy applies.

drilling spud

SNE-3 flow tests of upper reservoirs gave up to 5,400 bopd and 4,000 bopd stabilised (4,500 bopd combined), constrained by equipment and above FAR's expectations. FAR considers the appraisal's flow-rate objective met. The well finished ahead of schedule; the rig moves to BEL-1.

flow test result

Independent assessor RISC upgraded SNE contingent resources to 240/468/940mmbbl (1C/2C/3C) gross. The 2C is up 42% from FAR's earlier 330mmbbl, or 70mmbbl net to FAR. The estimate predates the SNE-2 results, and RISC will update after the wells.

resource reserve update

SNE-2 succeeded: the lower reservoir flowed about 8,000 bopd (equipment-constrained) and the upper unit about 1,000 bopd. Oil column is 103m gross. FAR expects a future upgrade of SNE resource estimates. This is the first of three wells.

flow test result

A Presidential decree extends the Senegal production sharing contract by the requested three years from 6 February 2016, giving time to appraise SNE and FAN. FAR also finished the Djiffere 3D survey; it holds an option to farm in for 75% until October 2016.

regulatory community update

The entitlement offer completed with 187.8m new shares issued at 8c, taking shares on issue to 3,693,650,099. This finishes the A$40m raising begun on 23 October. FARJOY remains the largest holder at about 11%.

capital raising announcement

Drilling has begun on the SNE appraisal program. The SNE-3 top hole is drilled first, then SNE-2 to total depth, about 6 weeks, followed by coring and flow testing; BEL-1 comes last. Program due mid-2016, aiming to show SNE exceeds roughly 200mmbbl.

drilling spud

The A$25m placement completed: 312.5m shares issued at 8c. Proceeds are for the two SNE appraisal wells and Bellatrix. This completes the institutional half of the A$40m raising announced 23 October.

capital raising announcement

FAR is raising about A$40m at 8c per share: a A$25m placement plus a 1-for-17 underwritten entitlement offer for about A$15m. Price is an 11.1% discount to the last trade. Funds go to the two SNE appraisal wells and Bellatrix, following the cash decline to A$43.6m.

capital raising announcement

Senegal joint venture executed contracts for the Ocean Rig Athena drillship, with ConocoPhillips managing drilling. Three firm wells (SNE-2, SNE-3, BEL-1) are due to finish by mid-2016, starting late October. Day rates were cut, said to be down by up to 50% for deepwater rigs offshore Africa.

contract award

FAR secured an option to earn 75% of Trace Atlantic's Djiffere block, next to its Senegal blocks, by drilling a well before 31 July 2018; option exercisable until 31 October 2016. FAR will fund a US$1.1m 3D survey covering 400km2. Extends the Senegal shelf play.

farm in farm out agreement

Operator Cairn confirmed the third firm Senegal well will target Bellatrix (168mmbbl gross, 25mmbbl net to FAR prospective), which overlies the SNE field's northern end. Government agreed the evaluation program; drilling of the first well is expected early Q4 2015. FAR puts Bellatrix chance of success at 49%.

drilling scheduled

FAR and partners plan a first-phase Senegal program starting Q4 2015: two SNE-1 appraisal wells plus one shelf exploration well, and new 3D seismic. FAR estimates the firm program costs about US$150m gross, FAR's share about US$25m (A$33m). Plan goes to Government in May.

drilling scheduled

FAR proposes to appoint Reg Nelson, former APPEA chairman credited with turning around Beach Energy, to the board as it moves into Senegal appraisal. Long-serving director Charles Cavness (20 years) will retire at the 15 May 2015 AGM.

director officer appointment

SNE-1 reached about 3,000m and found no hydrocarbons in the deeper carbonate target, so it will be plugged and abandoned. The shallower Albian discovery stands. Drilling program ends with two discoveries; appraisal planning is underway and a final evaluation is due in Q1 2015.

drilling result

SNE-1 is a second Senegal oil discovery: 36m net pay in a 95m gross oil column with a gas cap, 32° API oil. Operator's contingent resource is P50 330mmbbl gross (50mmbbl net to FAR). Drilling continues to the deeper carbonate target.

drilling result

FAR raised A$46.7m via an oversubscribed placement of 424,961,685 shares at 11c, an 18.5% discount to market, lifting cash to about A$85m. Cost overruns and the FAN-1 discovery pushed Senegal costs above the funding cap; FAR expects to pay about US$35m.

capital raising announcement

FAN-1 in Senegal is a significant oil discovery: 29m net oil-bearing sandstone within a gross oil interval over 500m, no oil/water contact, oil 28-41° API. This resolves the overdue FAN-1 result. No well test is planned; appraisal planning follows.

drilling result

FAN-1 recovered oil samples from a thin sand in a shallow secondary target at 4,402m, which FAR says confirms a working petroleum system. This is not the main target. Drilling continues to about 5,000m, with completion expected within a month.

drilling result

FAN-1 is at about 3,000m, above the first reservoir target, with maintenance nearly done. Rig delay is expected to raise well costs: FAR may need to contribute about A$24.2m. It has received A$22.2m from farm-outs and held A$42.9m cash at 19 June.

drilling progress report

FAR raises A$8 million by placing 200 million new shares at 4 cents, a 15% discount to market. Funds go to Kenya exploration, possibly speeding up the Miocene reef oil play evaluation, and working capital. Shares rise to 2,699,846,742 (about 7.4% dilution).

capital raising announcement

Drilling starts on FAN-1, the first Senegal well, resolving the delayed April spud. It tests a fan structure with about 900m barrels (135m net to FAR) and takes about two months. FAR (15%) says its carry and cash cover its share of both wells.

drilling spud

Senegal drilling is delayed from the earlier Q1 2014 target to April, after Cairn finishes a Moroccan well. The two wells target about 1.5bn barrels unrisked. Cash is A$28.4m. FAR also notes Sunbird-1 in Kenya found a hydrocarbon column, encouraging for L6 and L9.

drilling scheduled

FAR's unaudited assessment of its 100%-owned WA-457-P and WA-458-P permits gives prospective resources of 447m barrels of oil equivalent net to FAR. A 3D seismic survey is planned for mid-2014 and FAR will seek a farm-in partner.

resource reserve update

Kenyan government approves the Milio farm-in on Block L6, clearing the condition on the 4 February deal. FAR is carried through a US$30m (FAR estimate) program, keeps 24% onshore and 60% offshore, and is still seeking an offshore farm-in partner.

farm in farm out completion

FAR's own unaudited assessment of its Guinea-Bissau blocks: East Sinapa discovery contingent resource 13.4m barrels (2.0m net) and total prospective resources 954m barrels (143m net). West Sinapa well still planned for late 2014.

resource reserve update

FAR signs its first Kenya Block L6 farm-in with Milio International: Milio funds a US$30m (FAR estimate) program, a 1,000km onshore 2D seismic survey and an onshore well (spud H1 2015). FAR keeps 24% onshore and 60% offshore. Needs Kenyan government approval.

farm in farm out agreement

FAR finalises joint venture terms with Ophir for a 30% interest in Kenya Block L9, with a first well expected in 2014. It will pay about US$11m of past costs after government approval and starts a farm-down. Cash was about A$26.7m on 4 September. Resolves the L9 JOA thread.

material agreement

ConocoPhillips farms into FAR's Senegal blocks for a 10% interest, funding a full carry of FAR through a second, deeper-water 'fan' well. FAR's stake drops to 15%, but both wells are funded, about US$190m total, with drilling expected first half 2014. Needs government approval.

farm in farm out agreement

Senegal's Minister approves the Cairn farm-in, so Cairn gets 65% and FAR keeps 25%, with a US$80m-capped well planned for early 2014. US$4.8m of the US$9.8m back costs is now due. Resolves the approval condition from March.

farm in farm out completion

Kenya reinstates previously relinquished acreage, expanding L6 by 60% to 5,010 km2. FAR estimates the new area at 773 million barrels, lifting L6 to 3,962 million barrels (unrisked). First-well location is due after final 3D data in April, and a partner search has started.

asset acquisition disposition

Cairn Energy farms into FAR's three Senegal blocks: it takes 65% and operatorship and fully funds one exploration well up to US$80m, expected early 2014. It also pays FAR about US$9.8m for past costs. FAR keeps 25%, subject to government approval. This resolves the Senegal partner search.

farm in farm out agreement

FAR's new internal estimate puts about 7 billion barrels of unrisked best-estimate prospective resources (5.4bn net to FAR) across Kenya L6 (3.7bn) and Senegal (3.585bn). Discovery chances are 5-38%, and these are undrilled prospects. FAR aims to drill both before year end.

resource reserve update

FAR agrees to sell its 11.25% interest in the WA-47-R permit (Sage field, Carnarvon Basin) to Hydra Energy, effective 1 August 2012. Described as not fitting FAR's Africa focus; completion needs JV and government approvals. No price stated.

asset acquisition disposition

FAR awards the 680 km2 Kenya L6 3D seismic contract, budgeted at $13.67m (FAR share $8.2m), starting end of May for about 5 weeks. Follows the March raising; aims to firm up seven prospects ahead of a mid-2013 first well.

contract award

Executive Chairman Michael Evans, in the role since 1992, retires from the board. Nicholas Limb, a director since the Flow takeover, becomes Chairman; Cath Norman leads as Managing Director. Completes the leadership handover to the former Flow team.

director officer appointment

FAR raises $15.04m for Kenyan exploration: a 280m-share placement at 4.3c ($12.04m) plus a Share Purchase Plan of up to $3m at the same price. Intended to maintain its interests in Kenya Blocks L6 and L9.

capital raising announcement

FAR receives the Presidential Decree for its Senegal second renewal period, running two years from 6 February 2012. Resolves the long-awaited Decree, though the well obligation and US$5m bond remain.

regulatory community update

Senegal's Energy Minister confirms FAR's second renewal period of two years on its Senegal blocks; a Presidential Decree is being finalised. A well within two years, backed by a US$5m forfeitable bond, is still required. FAR is seeking a farm-in partner.

regulatory community update

Ophir will not exercise its option to take 25% of FAR's Senegal licences, so FAR keeps 90%. Talks continue with other possible farm-in partners to secure an exploration well commitment. Resolves the option extended repeatedly through 2011.

farm in farm out agreement

Catherine Norman becomes Managing Director and Nicholas Limb a non-executive director, as foreshadowed in the Flow bidder's statement. Both come from Flow Energy, bringing new management alongside Michael Evans, who remains Executive Chairman.

director officer appointment

FAR declares its Flow Energy takeover offer fully unconditional, holding 93%. Accepting Flow holders get FAR shares within five business days; the offer closes 18 November 2011, with compulsory acquisition of the rest planned. Follows the 90.1% milestone in October.

business combination

FAR launches a recommended takeover of Flow Energy at 42.66 FAR shares per Flow share, valuing Flow at about $25m. It adds Kenya, Jamaica and Australian blocks, and Flow's Catherine Norman joins as Managing Director. Flow holders would own 41.3% of the combined company.

business combination

Kora-1 reached 4,447.5m and will be plugged and abandoned as unsuccessful: it found claystone and limestone rather than the expected sandstone reservoir. This is a major setback after the Ophir deal; FAR still plans a Senegal well in 2012 and possibly 2 in Guinea Bissau, subject to farmout.

drilling result

Drilling has started on Kora-1, the first deepwater well in the region, targeting mean 448m bbl in 2,700m of water. FAR holds 8.8% beneficial interest, with Noble at 30%. No periodic updates will be released during drilling.

drilling spud

Detailed agreements with Ophir are finalised and the AGC approval granted: FAR gets a 10% paying interest (8.8% beneficial) in AGC Profond, and Ophir may acquire 22.5% of FAR's Senegal licences. Kora-1 (mean 448m bbl) is expected to spud about 11 April 2011.

farm in farm out completion

Stokes Bay-1 retest recovered about 2,760 barrels of fluid that was 100% water with no hydrocarbon indications, and the well will be suspended. This is a negative result for FAR's 8% licence interest after the further test planned in 2010.

well test result

FAR raises up to $34m: a 500m-share placement at 5.8 cents plus a $5m share purchase plan at the same price. Funds the Kora well, Guinea Bissau 3D and possible wells, and Senegal bonds. Placement needs approval on 15 Nov; the raising satisfies the Ophir condition precedent.

capital raising announcement

Heads of Agreement with Ophir: FAR to acquire 10% of the AGC Profond block and join the Kora well (mean 448m bbl prospective resource) in Q1 2011. Ophir gets the right to earn 25% of FAR's Senegal licences. Subject to regulatory approvals.

farm in farm out agreement

FAR formally asks to enter Senegal's next exploration phase from 23 Nov 2010, a 3-year term requiring a well within 2 years backed by a forfeitable US$5m surety. Ministerial approval and a Presidential Decree are still needed; verbal support has been given. This follows the unsuccessful farmout search.

regulatory community update

PGS is awarded a 1,600 sq km 3D seismic survey over the Guinea Bissau licences from mid-September 2010, within a programme budgeted at about US$15m gross. Ministers also extend the licences two years to 25 Nov 2012 (gazette pending). FAR holds 15%.

contract award

FAR agrees to acquire from Delek a 15% interest in three Guinea Bissau licences, including the Sinapa oil discovery (P50 240m barrels in place), operated by Svenska. Subject to government approval. This is the new venture hinted at earlier, widening FAR beyond Senegal.

asset acquisition disposition

Senegal's energy minister confirms a one-year extension of the Senegal licence term, running from a formal Presidential Decree still to come. Removes the 22 November expiry risk while farmout reviews by several large companies continue; FAR seeks cost recovery and a free carry for one well.

regulatory community update

Shell's CSEM results are inconclusive: the most prospective southern fan showed a complex anomaly. FAR keeps the data, has received US$3.0m from Shell, applied for a one-year licence extension and started farmout talks with several approaching parties.

joint venture update

Shell declines its option to take 70% of the Senegal licences, ending the March 2009 deal. FAR keeps 90%, stays operator, receives US$3m plus about US$0.5m of past costs, and must now seek a new partner and a licence extension.

farm in farm out completion

FAR agrees to sell its 5% Beibu Gulf Block 22/12 interest to South Sea Oil (Majuko Group) for US$8m: US$2m within 14 days, US$3m on development plan approval, US$3m after 1 million barrels produced. This resolves the December 2008 decision to sell.

asset acquisition disposition

FAR reached an in-principle agreement with Hartleys to raise up to $3.5 million by placing up to 70 million shares at 5 cents, for working capital. The announcement followed the Shell Senegal agreement and lifted a trading halt.

capital raising announcement

FAR signs a conditional Senegal deal with Shell: Shell funds a seabed electromagnetic survey and may then take 70%, carrying FAR through a well up to US$65m and leaving FAR 20%. FAR recoups about US$3.4m of past costs regardless. This resolves the farm-in search.

farm in farm out agreement

Petrosen formally approves FAR increasing its Senegal interest to 90% and becoming operator. A third written farm-in offer, from a major, has been received and negotiations continue. FAR still seeks a free carry through the first exploration well.

material agreement

FAR agrees in principle to raise up to $3.5m via convertible notes (convert at 4.5c, 15% coupon, due 31 Jan 2012) plus up to $750k placement of 28.85m shares at 2.6c, both subject to shareholder approval. It will also pursue a sale of its Beibu Gulf (China) interest and says Petrosen has no objection to its 90% Senegal stake.

capital raising announcement

Pitchford #2 is also a failure: the Yegua and Cockfield appear wet, the Frio is marginal, and the well will be plugged and abandoned. Both shallow NE Waller wells are now dry. FAR (34%) still plans to farm out the deeper Wilcox prospects.

drilling result

Senegal's Energy Minister granted a one-year extension of the licence phase, resolving the open extension request. FAR intends, subject to Petrosen approval, to lift its interest from 30% to 90% and take over as operator. Two farm-in offers are held, with a third from a major pending.

material agreement

Pitchford #1 at NE Waller is a dry hole: logs showed no hydrocarbons and it will be plugged and abandoned. It serves as 3D seismic calibration for the remaining Frio prospects, whose future drilling is to be reviewed. Pitchford #2 rig due this weekend. FAR holds 34%.

drilling result

Operator Buru reports Stokes Bay-1 testing is finished: only 190 more barrels of drilling fluid recovered, no definitive Nullara formation fluids, crew demobilised. Other methods must be evaluated. A disappointing result for FAR (8%), though the well is not yet written off.

well test result

Two written farm-in offers for a Senegal well have arrived, with a third pending. Partners (FAR 30%) have asked for the licence phase to be extended one year. FAR still seeks a free carry. NE Waller rig due 15 October; Stokes Bay testing now October.

joint venture update

Production started on 1 August from the 5500 ft sand in Lake Long #6 (FAR 31.375%), flowing at 1.1 million cubic feet of gas a day while still cleaning up. This follows last month's completion work and is expected to reach about 1.5 million cubic feet a day.

production update

FAR resolved to raise up to $4 million through a placement of up to 50 million shares at 8 cents, with Hartleys as lead manager. It also offered eligible shareholders a Shareholder Purchase Plan of up to $5,000 each at the same price, to fund its work programme.

capital raising announcement

FAR (34%) plans two NE Waller wells, targeting Frio at 3,850 ft and a Cockfield/Yegua fault closure, with drilling expected early third quarter 2008. FAR is participating in both, with dry-hole costs about US$300,000 and US$500,000. Over 50 BCFE potential is anticipated.

drilling scheduled

Operator Hunt has begun a global farm-out campaign for the Senegal prospects (FAR 30%). Hunt's estimates put the shelf-edge closure's mean potential above 1 billion barrels of oil in place. If the farmout succeeds, FAR expects to be free carried through one well.

joint venture update

Wei 6-12E-1A (FAR 5%) reached 2,510 m with only minor residual oil shows and will be abandoned, the second China dry well of the program. Development plans for Wei 6-12 reportedly unaffected. Schwing #2 reached 14,386 ft, to be logged through casing.

drilling result

Wei 6-12W-1 (FAR 5%) found no hydrocarbons at 2,333 m and was plugged and abandoned. Wei 6-12E-1 is next. Schwing #2 logs show the Upper Bol Mex sand wet, leaving only the Marg Tex pay so far.

drilling result

Processing of the 2,086 sq km Senegal 3D (FAR 30%) is complete, showing stacked Santonian fan amplitude anomalies and a large shelf-edge closure up to 178 sq km. No volumes are estimated yet. Partner marketing is planned for February.

resource reserve update

Wild River 3D processing is complete and a Wabamun gas prospect of up to 50 Bcf is mapped. FAR's interest is now about 29.12% (earlier ~36%). It will be marketed for farm-out in February, with a well possible from Q2 2008.

drilling scheduled

Initial 3D interpretation at NE Waller (FAR 34%) shows multiple leads and prospects, including two Lower Wilcox gas prospects at about 11,000 ft. FAR sees over 50 BCFE potential and will show them to partners in February, with drilling planned 2008.

resource reserve update

ROC reports the China drilling program began 1 January 2008 with Wei 6-12W-1, targeting about 2,425 m, after a two-week rig delay. Three wells are planned plus a possible fourth, finishing by end of Q1 2008. FAR holds 5%.

drilling spud

FAR (8%) reports Stokes Bay-1 testing is suspended and equipment removed because of seasonal rain, with resumption expected around April 2008. The nature of the reservoir fluid is still unknown, so the result is delayed about four months.

well test result

The Lindsey 109A #1R sidetrack (FAR 4.64%) logged 20 ft of oil pay and will be completed for production. Separately, a rig is contracted for South Grosse Tete's Schwing #2, a 14,500 ft well (FAR 5% shallow, 17.7% deep) following the dry Schwing A-1, with US$6m estimated cost.

drilling result

FAR (8%) reports Stokes Bay-1 found gas and minor oil shows in the lower Anderson Formation. It joined the deepening to 2,755 m, where total mud loss indicates a porous, permeable zone. Logging and possible testing follow.

drilling result

Operator ARC reports Valentine-1 was plugged and Stokes Bay-1 was sidetracked on 3 October from 975 m; it is drilling at 1,226 m toward about 2,500 m. Target is about 90 m updip of the strong Valentine gas shows.

drilling spud

FAR (8%) reports Stokes Bay-1 was sidetracked from Valentine-1 at 975 m on 3 October and is drilling ahead at 1,226 m toward about 2,500 m. It targets the gas accumulation found at Point Torment-1 in 1992 (4.3 mmcfd). FAR calls the Valentine shows very positive.

drilling spud

FAR (8%) reports Valentine-1 final depth of 3,430 m, called for lack of porosity and significant hydrocarbon shows in the Virgin Hills target. It will be sidetracked as Stokes Bay-1 (about 2,500 m), tested via the 1992 Point Torment gas flow of 4.3 mmcfd.

drilling result

Operator ARC called final depth on Valentine-1 at 3,430 m: the Virgin Hills target sandstones were tight with no significant porosity or hydrocarbons. The well will be sidetracked to Stokes Bay; operator calls the earlier Anderson and Laurel gas shows highly encouraging.

drilling result

Lake Long SL 328 #9 (FAR 10.1875%) began production at 1.825 mmcfd plus 50 bc/d on a restricted choke; the operator plans 4 mmcfd. Kicker Marceaux #1 (FAR 5%) went to sales 14 September but sanded up; coiled tubing cleanout is being mobilised.

production update

Lindsey 109A #1R (FAR 4.64%) reached 12,280 ft and tested oil with no water over a 6 ft net interval, but permeability is low. A sidetrack nearer the 1997 discovery well is planned and FAR will participate. Kicker's Marceaux #1 (FAR 5%) began oil sales, about 4,500 barrels in 6 days.

drilling result

After fracture treatment, Kicker's Marceaux #1 (FAR 5%, 3.75% after payout) tested up to 2,520 barrels a day while unloading fluid. It was making 624 barrels of oil a day, no water and no sand, on an 8/64 inch choke. Sales could start as early as the next day, resolving the sand problem seen in June.

flow test result

This is Empire Oil & Gas's announcement, not FAR's. Valentine-1 in the Canning Basin spudded 12 August (FAR 8%), ARC operator. The well targets up to 200 million barrels, and Stokes Bay-1 will be sidetracked from it afterwards. This starts the July-programme wells FAR flagged.

drilling spud

FAR confirms Valentine-1 in the Canning Basin spudded 12 August (FAR 8%), targeting the Virgin Hills Formation at about 3,222 m. Stokes Bay-1 follows by sidetrack. Empire cites up to 200 million barrels of oil, or up to 1,200 BCF of gas, if the structure is filled.

drilling spud

Lake Long #9 (FAR 10.1875%) flowed 2.36 mmcfd of gas and 55 barrels of condensate a day, no water, on a restricted test. The operator expects about 4 mmcfd and 100 barrels once a platform and flowlines are done in August. Lindsey well is at 6,815 ft.

flow test result

Electric logs at Lake Long #9 (FAR 10.1875%) confirm gas pay: 13 ft net in the Upper and 29 ft net in the Middle Hollywood, now behind casing for later production. Drilling continues to the Lower Hollywood. Canning Basin Stokes Bay and Valentine wells are due about late July.

drilling result

FAR confirmed it allotted 62 million shares, raising A$8.68m before costs, completing the placement announced 7 June (at 14c per that announcement). Shares on issue rise to 483,553,344. Funds go to Senegal 3D interpretation, China, Canning Basin, Gulf Coast and NE Waller.

capital raising announcement

FAR will raise A$8.68m by placing 62 million shares at 14 cents, mainly to institutions and Hartleys clients, with allotment about 20 June. Funds back Senegal 3D interpretation, a 4-6 well China program from November, two Canning Basin wells from late July, Gulf Coast drilling and the NE Waller 3D.

capital raising announcement

Kicker's Marceaux #1 (FAR 5%, 3.75% after payout) tested up to 1,056 barrels of oil a day, confirming an oil discovery; fracture stimulation planned 11 June. Chairman urges caution until sustained production. Lake Long #9 is at 10,926 ft with residual shows; main targets are below 11,800 ft.

flow test result

Bujnoch-Bender #1 (FAR 20%) tested 170 barrels of oil and 388 mcf gas a day from the Middle Wilcox at 7,834 ft and goes to sales. Kicker's Marceaux #1 (FAR 5%) testing begins this week. Lake Long #9 is drilling at 9,020 ft.

well test result

Lake Long SL 328 #9 (FAR 10.1875%) spudded 12 May and is drilling at 2,100 ft, with about 48 days planned to 13,555 ft. Senegal 3D acquisition ended 28 March (2,089 km2, about US$12.1m); data quality is excellent, with interpretation due to start in Q4 2007.

drilling spud

A rig is being mobilised for the Lake Long SL 328 #9 deep well (FAR 10.1875%), a 13,555 ft test targeting 21.7 BCF plus 760,000 barrels, costing about US$10m if completed. FAR also farmed out the Thunder River Prospect to Mustang for a 3% override convertible to 25% working interest after payout; Mustang must drill by 1 October 2007.

asset acquisition disposition

Kicker's Marceaux #1 reached 13,264 ft and found 33 ft of net pay in the Alliance 2 and 3 Sands, so production casing is being run (FAR 5%, 3.75% after payout). Bujnoch-Bender #1 is also cased for production, with Rainosek 3 at 50 barrels a day.

drilling result

Bujnoch-Bender #1 (FAR 20%) reached 9,000 ft with about 60 ft of net pay, mostly gas, in thin Upper and Middle Wilcox zones; the Lower Wilcox is wet. Kicker's Marceaux #1 recorded gas shows in a primary objective, to be logged at total depth.

drilling result

FAR and a Canadian partner will shoot a 3D seismic survey in the Alberta Deep Basin from about 15 March, with FAR expected to hold around 36%. FAR also took an option for 15% of a 4,000 m Wabamun test (50 BCF plus) at Karr, exercisable once an operator is appointed.

material agreement

FAR has acquired a 5% interest in the Kicker Prospect, Vermillion Parish, Louisiana (Sandalwood operator). A 13,200 ft well is expected to spud next week, targeting 22.8 BCF gas and 2.2 million barrels of condensate if both sands succeed; interest falls to 3.75% after payout.

drilling scheduled

Operator ROC's appraisal report estimates Wei 6-12 South and Wei 6-12 recoverable oil at 19 MMBO most likely, 27 MMBO upside. FEED is due late Q1 2007 and a final investment decision in 2H 2007, possibly giving first oil by 2009. FAR holds 5%.

resource reserve update

Lake Long SL 328 #2 reached 11,480 ft with 97 ft of net pay over three zones, including 81 ft in the T Sand, and is being cased. With #1's 25 ft, FAR's final interest depends on unit formation (small, 0.226875% if 50%).

drilling result

West Andrew's Lucy B. Thomas #1 (FAR 10%) is to be plugged and abandoned: the upper sand tested gas and water, the lower was low permeability, and the fault trap apparently did not seal. This is a dry hole against 20 BCF potential.

drilling result

Operator says fishing for the stuck guns at Eagle North-1 is abandoned as not cost effective. Partners (FAR 15%) will instead plan a future re-entry and sidetrack, timing dependent on rig availability. This ends the current test attempt without a result.

drilling result

West Andrew's Lucy B. Thomas #1 well spudded on 2 October and is at 580 ft, heading to 14,000 ft in about 53 days. FAR holds 10% (7.5% after casing point); potential is 20 BCF gas and 200,000 bbl oil.

drilling spud

ST135S #1 reached 9,900 ft and is a dry hole: no resistivity in key beds, with two small non-commercial blips. The well will be plugged and abandoned. FAR (12.5%) will study why it failed; the Chairman called the result 'puzzling'.

drilling result

ROC says the second Wei-6-12S-1 sidetrack found four oil sands (16m net pay) more than 45m downdip, outside the currently mapped closure. The upper sands are as many as seven separate oil columns, not one reservoir. Middle and Lower sands were water-wet downdip, as expected. FAR holds 5%.

drilling result

FAR acquired a 10% interest (7.5% after casing point) in the West Andrews gas prospect, South Louisiana, with a 14,000 ft well likely to spud before November. Potential is 20 BCF gas and 200,000 barrels of oil. Galveston Bay rig is slightly delayed; Texas 3D leasing has reached 7,404 net acres.

asset acquisition disposition

CGG has been awarded the 2,000 sq km 3D seismic survey over FAR's Senegal blocks (FAR 30%, Hunt Oil operator), with acquisition set to start in the first week of December 2006. This follows through on the planned Q4 2006 survey, a step toward drilling targets.

contract award

Following shareholder approval, FAR allotted 95 million shares to Hartleys' institutional clients, raising $12.35m. This completes the placement agreed on 8 May; FAR says it is fully funded for its program. Issued shares now about 413.7m.

capital raising announcement

ROC reports Wei-6-12S-1 tests flowed oil from all three zones, at a combined stabilised rate of up to 5,750 bopd (1,725, 2,575 and 1,450). No water was produced. First sidetrack starts this week. FAR holds 5%.

flow test result

ROC's logs show three oil/gas columns at Wei-6-12S-1 with 95m net hydrocarbon pay, including 80.5m net oil, slightly below the earlier ~100m estimate. Two columns may extend beyond mapped closure, so the field could be bigger. Appraisal with at least two tests and a sidetrack is planned. FAR holds 5%.

drilling result

ROC says early logs show Wei-6-12S-1 is a potentially significant oil discovery, with about 100m of net oil pay, above the pre-drill expectation. The joint venture is weighing immediate appraisal. This turns the earlier oil shows into a discovery; FAR holds 5%.

drilling result

FAR agreed with Hartleys to raise $12.4m via a placement of 95,000,000 shares, about 13c each (inferred from the figures). Subject to shareholder approval at a 9 June meeting. With $13.5m cash, FAR says it is fully funded for its program.

capital raising announcement

ROC reports strong oil shows in a 3-5m sand at 1,956m in Wei-6-12S-1, plus a gas-rich interval at 1,985m. Its CEO says the well is likely to be classified a discovery, but size is unknown until logs. FAR holds 5%.

drilling result

FAR won a bid of US$169,500 for 320 acres at Galveston Bay State Tract 135, offshore Gulf of Mexico, next to the Smith Point Field. FAR takes 12.5% in a multi-Frio-sand prospect; the first well may be drilled April–July 2006. It is FAR's first direct bid on offshore acreage.

asset acquisition disposition

FAR takes a 15% interest in a second Suncor gas project, Clear Hills, Alberta, with operator Choice. First of two obligatory shallow Notikewin tests (Sweeney 102, about 1,000m) has spudded; Suncor estimates 5-11 BCF recoverable. Logging expected early next week.

farm in farm out agreement

Senegal's government approved FAR's 30% share in the Rufisque, Sangomar and Sangomar Deep offshore blocks with Hunt Oil (operator 60%). This clears the main pending condition on the January deal and removes the convertible notes' early-maturity provision; maturity stays 31 January 2009.

material agreement

FAR takes a 15% interest in a Kakwa, Alberta gas test with Suncor acreage and operator Choice Resources. The well targets 13,000 feet, estimated dry-hole cost CAD$4.7m, with 17 BCF estimated by Suncor. A rig is on location, spud expected within 48 hours. New Canadian gas thread.

farm in farm out agreement

Lake Long SL328 #8 (FAR 1.375%) reached planned depth; preliminary logs show 27.4 feet of net pay in 3 zones, with up to 17.3 feet more possible. Payback is modelled under 6 months. FAR also reports 4,317 gross acres leased for its 34% Texas Gulf Coast 3D project.

drilling result

Vertical test of Eagle North-1 failed to flow: only about 400cc of oil recovered, and the perforations likely did not connect the oil sands to the well (inference from operator data, washouts and mud damage). Partners unanimously chose a 90-150m horizontal lateral instead. FAR holds 15%.

well test result

Sun Resources reports first-pass logs on Eagle North-1 show about 7 metres of net oil pay between 4,136 and 4,157 metres, similar to the 1986 Mary Bellocchi-1 discovery well. Testing follows after casing. Resolves the earlier no-oil-show concern positively; FAR holds 15%.

drilling result

Operator's preliminary log analysis indicates oil saturation over 21 metres (4,136-4,157 metres) with 7 metres net pay, similar to Mary Bellocchi-1. The well will be cased and tested over about 8 days, then possibly sidetracked 300 metres. Duplicates Sun's result; FAR holds 15%.

drilling result

Eagle North-1 hit the target Gatchell sand at 4,162 metres as predicted, with a gas show but no visible oil, which the operator says drilling conditions would suppress. Logs in 24-48 hours will decide. Total depth moved to 4,220 metres and time to 28 days. FAR holds 15%.

drilling result

FAR has allotted the first 7,697,000 of 7.7 million convertible notes; the placement funds go toward the three Senegal licences. Operator Hunt Oil says a contract for the 2,000 sq km 3D seismic survey is close to finalisation. Note price is not stated here.

capital raising announcement

Schwing A-1 (FAR 18.3%) reached 11,650 feet; logs and cores show its three Upper Bolmex sands hold no oil, so the well will be plugged and abandoned. This resolves the 3-5 million barrel prospect as a dry hole. The 40-1 well is being considered next.

drilling result

FAR agreed with Hunt Oil to acquire a 30% interest in three offshore Senegal concessions, subject to Senegal government approval. FAR would contribute about US$9.3 million toward a proposed 2,000 sq km 3D seismic survey from late Q3 2006. Due diligence continues; upside is described as exceeding 1 billion barrels.

farm in farm out agreement

Partner Sun Resources reports Eagle North-1 spudded 11 January and was drilling at 252 metres towards a 4,200 metre target. This starts the appraisal well in which FAR holds 15%.

drilling spud

FAR signed a letter of intent for a 34% interest in a 50 square mile 3D seismic project on the onshore Texas Gulf Coast, costing about US$1.36 million of a US$3.4 million total. A definitive agreement is due by 31 January 2006; potential exceeds 50 BCFE.

farm in farm out agreement