11 Feb 2014farm in farm out completion▲ Good
FAR receives the US$5m second payment from Cairn for Senegal back costs, lifting cash to A$29.6m at 10 February. Closes the open Cairn payment thread. First Senegal well still expected to spud in Q1 2014.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Feb 2014resource reserve update▲ GoodMajor
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.
4 Feb 2014farm in farm out agreement▲ GoodMajor
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.
29 Oct 2013drilling scheduled▲ Good
Cairn's Cajun Express rig has started drilling in its African program, with FAR's first Senegal well now expected to spud in mid first quarter 2014. The two wells test about 1.1 billion barrels unrisked. ConocoPhillips deal still awaits government approval.
8 Aug 2013farm in farm out completion▲ Good
FAR receives the first US$4.8m from Cairn for Senegal back costs and hands over operatorship on 1 August. Cash is A$23.7m with no debt; a US$5.0m second payment is expected next quarter. ConocoPhillips deal still awaits government approval.
1 Aug 2013farm in farm out agreement▲ GoodMajor
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.
30 May 2013farm in farm out completion▲ GoodMajor
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.
19 Mar 2013farm in farm out agreement▲ GoodMajor
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.
27 Feb 2013resource reserve update▲ GoodMajor
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.
27 Feb 2013resource reserve update● Neutral
Partner Pancontinental (40% of L6) repeats FAR's new estimate of 3.7 billion barrels of oil or 10.2 tcf gas for Kenya L6, with 1.48bn barrels as its share. Duplicates FAR's same-day release.
12 July 2012drilling progress report● Neutral
Partner Pancontinental reports the Kifaru 3D acquisition is finished, covering 778 km2 against the 680 km2 planned. It says drilling is planned for 2013 or early 2014, slightly looser than FAR's mid-2013 timing.
12 July 2012drilling result▲ Good
FAR completes Kenya L6 3D seismic acquisition within the expected timeframe; early review suggests good quality data. Interpreted results are expected early Q1 2013, ahead of a planned mid-2013 first well.
13 June 2012drilling progress report● Neutral
Pancontinental, FAR's 40% L6 partner, repeats that the Kifaru 3D survey is starting, using the vessel Fugro Geomariner, with acquisition finishing early July 2012. Duplicates FAR's own announcement of the same day.
13 June 2012drilling progress report● Neutral
FAR says the Kenya L6 3D seismic survey (680 km2, FAR share $8.2m) starts acquisition on 15 June, finishing early July. Slightly later than the end-of-May start previously signalled; first L6 well still targeted for 2013.
21 Dec 2011farm in farm out agreement▼ BadMajor
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.
28 July 2011drilling result▼ BadMajor
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.
28 June 2011drilling spud▲ GoodMajor
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.
21 Apr 2011drilling scheduled▼ Bad
Because of operational delays, the Kora well is now expected to start around 15 May 2011, later than the 11 April date given on 25 March. The timing still depends on the rig being released from a Ghana contract.
25 Mar 2011farm in farm out completion▲ GoodMajor
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.
13 Dec 2010drilling progress report▲ Good
The Guinea Bissau data acquisition (1,200 sq km gravity, 1,640 sq km 3D seismic) is complete, with encouraging early results. Processing continues into 2011 and, subject to results, could lead to up to 2 wells on FAR's 15% licences.
22 Oct 2010drilling scheduled● Neutral
Partner Empire repeats the planned Stokes Bay-1 nitrogen-lift retest, with FAR at 11.15% of the test. Adds that a nearby well had oil shows, but also notes a substantial chance of no hydrocarbons.
22 Oct 2010drilling scheduled● Neutral
Operator Buru announces a further Stokes Bay-1 test, nitrogen-lifting the well from mid-November 2010. FAR's share of the test is 11.15% (8% of the licence) because some partners declined. Buru says there is a substantial chance there are no hydrocarbons.
12 Oct 2010drilling progress report▲ Good
The 1,600 sq km 3D seismic survey over the Guinea Bissau licences has started and is on schedule, with results due Q1 2011. A Presidential Decree gazette confirms the 2-year licence extension; a further gazette novating the Delek-to-FAR transfer is still to come.
11 Oct 2010farm in farm out agreement▲ GoodMajor
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.
17 Aug 2010drilling progress report▲ Good
ARKeX has begun the gravity gradiometry survey over the Guinea Bissau blocks, the first field work, ahead of the 1,600 sq km 3D seismic due mid-September 2010. 3D results are expected in Q1 2011. FAR holds 15%.
24 Aug 2009farm in farm out completion▼ BadMajor
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.
25 Mar 2009farm in farm out agreement▲ GoodMajor
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.
8 Dec 2008drilling result▼ BadMajor
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.
2 Dec 2008drilling progress report● Neutral
Pitchford #2 spudded 28 November and is drilling ahead at 3,048 ft toward 7,100 ft. FAR (34%) intends to seek farm-in partners for the Wilcox and deeper prospects, which it calls the main thrust of the NE Waller program.
18 Nov 2008drilling result▼ BadMajor
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%.