FAR Signs Farm-Out Agreement with Petronas in The Gambia

FAR Ltd has signed a farm-out agreement with a subsidiary of Petronas for a 40 percent interest in each of The Gambia’s blocks A2 and A5.

Following the deal, Petronas will fund 80 percent of the total well costs of the Samo-1 exploration well, up to a maximum total cost of $45 million. Petronas will also fund FAR’s share of non-well costs up to a maximum amount of $1.5 million.

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FAR will retain a 40 percent interest in each of the A2 and A5 licenses and will remain operator through the exploration phase. Samo-1 is expected to be drilled in late 2018 and will be the first exploration well offshore The Gambia since 1979.

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“This farm-out deal with Petronas is further recognition of the value of our Gambian licenses and FAR’s status as a partner of choice in the Mauritania-Senegal-Guinea-Bissau-Conakry Basin,” FAR Managing Director, Cath Norman, said in a company statement.

“FAR has built an enviable position in the basin and we look forward to drilling the Samo-1 well later this year. Success in this well would be of significant value to our shareholders and truly transformational for the people of The Gambia,” Norman added.

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Source: Rigzone