Malcy- the only way is up!!!

Malcy- the only way is up!!!

FAR Limited
Wow, what a week in West Africa where deals are being announced on an almost daily basis. Last night FAR announced that it had entered into an AMI agreement with CNOOC which covers selective blocks offshore Senegal and The Gambia. To quote FAR ‘this dramatically advances FAR’s ability to acquire new assets in our core strategic geographic area of expertise’. FAR has already announced this week a farm-in to The Gambia for very modest expenditure.

CNOOC have already announced a farm-in with Impact, mentioned here on Wednesday and this shows that they are most serious about this increasingly popular post code. It does pose a number of questions not least how pleased WPL will be that FAR is now in bed with a very smart, very rich operator who may have a little more sway with the Oil Ministry. In addition, as per my comments of a few days ago about FAR’s options, this not only strengthens FAR in its negotiations but just might provide CNOOC as the super-major who could cut a deal with Cairn if they were ever to become a seller. Also, if partnered by CNOOC in any upcoming licence awards, the future just got significantly better for FAR in the region.

This action may well smoke out all sorts of other players in this highly exciting acreage offshore West Africa as there are a number of majors who have yet to show their hands. There is much to play for here and FAR just got a strategic partner with’ the deep technical, operational and financial calibre of CNOOC’, the only way is up…