FAR Ltd to spud Gambia Oil blocks on 1 October

The Australian Oil and Gas company FAR Ltd which holds an 80% working interest of Gambia oil block Sammo-1 of the Block A2 plans to begin initial drilling on 1st October 2018.

Sammo-1 of Gambia oil block A2 is estimated to hold close to 1 billion barrels of oil. FAR Ltd who are the operators sold 40% of blocks A2 and A5 to Oil giants PETRONAS in a farm-in agreement deal worth up to $53.6 million according to Proactive Investors Australia. The remaining 20% of the oil blocks is owned by Erin Energy.

FAR Ltd turns to The Gambia as SNE oilfield approaches commercialisation milestone

FAR Ltd (ASX:FAR) managing director Cath Norman speaks to Proactive Investors about the oil and gas exploration company’s exciting advancements off the west coast of Africa.

The company’s efforts are currently focused on The Gambia, and in particular on the Samo prospect. “Drilling an 800 million barrel prospect is large by any company standards... when you consider that at the moment we have a net 140 million barrels to our name in Senegal, and our market cap’s $500 million, it’s wonderful to think about what our market capitalisation could be after we’ve drilled this Gambian well and have access to maybe another 300 million barrels to FAR’s name. And we’ll have the results of that well by mid to late November at the latest, if we spud on October 1,” says Norman. FAR Ltd’s Senegalese operations are much more advanced, approaching a key milestone on the path to commercialisation. Norman explains, “we’ve got past the three principal hurdles of size, deliverability, and connectivity; so we understand everything about the oilfield now enough to progress to development. We are in a position today where we’ll be submitting the discoveries evaluation report to the government in about two weeks, which is a statement of commerciality, which I know a lot of our shareholders will be very pleased to see.

And with that we’ll be progressively releasing some information about the final size for the development, and also the economics. The field will be developed in a phased development approach... we’ll be looking to get approval of our development plan by the end of this year, we’ll take the final investment decision in mid-2019, and then we’ve got an ambition to have first oil in about 2022.”