viewFAR Ltd

(

ASX:FAR

)

FAR makes strong progress at Bambo-1 well in The Gambia with oil indications detected

“We are encouraged by the presence of oil in potential reservoirs and look forward to completing the well in the coming weeks,” says MD.

FAR Ltd has made strong progress in advancing drilling operations at the Bambo-1 exploration well offshore in The Gambia.

To date, the company has drilled 3,216 metres MDBRT (measured depth below the rotary table) of a total planned depth of 3,450 metres MDBRT.

Interestingly, oil indications have been detected in rock cuttings and hydrocarbons have been interpreted across several intervals in the well from LWD data (logging whilst drilling).

“Presence of oil”

FAR managing director Cath Norman said: “FAR is pleased with the experienced drilling team and contractors who have acted to quickly manage and adjust the Bambo-1 drilling program to suit the geological setting and best meet the objectives of the drilling program.

“FAR is well placed to achieve these objectives through the side-tracked well and in particular drilling through the as yet undrilled Soloo Deep prospect.

“We are encouraged by the presence of oil in potential reservoirs and look forward to completing the well in the coming weeks.”

Drilling operations

Drilling operations were temporarily halted at the current depth after significant fluid losses were experienced.

These fluid losses were stabilised in accordance with standard offshore operating procedures, and FAR is now planning to plug and side-track the well to continue drilling to the planned total depth.

Prior to side-tracking and provided hole conditions remain stable, FAR is undertaking a wireline logging program in the current wellbore.

Financial forecast

FAR estimates that the cost to complete the well will increase from a total of US$51.4 million to US$61.27 million, an increase of US$9.87 million or US$4.935 million net to FAR.

The company forecasts a cash balance of US$37 million after the completion of the well, inclusive of the increase in Bambo-1 well costs.

Adding the side-track program has extended the period of operations which is now expected to be completed by the end of December 2021.

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