FAR Limited (ASX: FAR) releases the economic data for the development of the world class SNE oil field offshore Senegal. SNE, the world’s largest conventional oil discovery in 2014, is today recognised as a global tier one oil field with 2C oil resources in excess of 640 mmbbls1 . The project will deliver FAR a net 13,670 bbls/d of oil production at US$$11 bbl OPEX. The unlevered project internal rate of return (IRR) is in excess of 30% 2 . FAR and the JV partners believe the robust economic returns for SNE has the potential to improve with acceleration of future development phases as well as the monetisation of gas, and improved oil recoveries. A key change to previous guidance on total CAPEX for the development has been due to the shift from a leased FPSO (OPEX) to a purchased FPSO (CAPEX). As a result, it is likely that a larger proportion of the total CAPEX will be debt funded. Formal government approval of the Development and Exploitation Plan (EP) and Final Investment Decision (FID) is anticipated in December 2019 with first oil forecast in late 2022.
FAR Price at posting:
5.2¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)