In other words doing absolutely nothing and still getting paid....close this dog down.
Principal activities
The principal activities of the Company and of the Group during the period was identifying and developing strategies to realise value
from the consideration receivable for the sale of its interest in the RSSD Project in Senegal to Woodside Energy (“Woodside”).
Review of operations
Consideration receivable the sale of its interest in the RSSD Project from Woodside Energy
As part of the consideration for the sale of its interest in the RSSD Project in Senegal to Woodside Energy (“Woodside”) in 2021, FAR
received rights to a Contingent Payment (Contingent Payment) with a maximum value of US$55 million.
The Contingent Payment comprises 45% of entitlement barrels (being the share of oil relating to FAR’s previously held 13.67% of the
RSSD Project comprising the Sangomar Field exploitation area of interest), multiplied by the excess of the crude oil price per barrel and
US$58 per barrel (capped at US$70 per barrel). The Contingent Payment terminates on the earliest of 31 December 2027, three years
from the first oil being sold (excluding periods of zero production), or a total Contingent Payment of US$55 million being reached,
whichever occurs first.
Woodside advised the ASX on 11 June 2024 that it had achieved first oil from the Sangomar field offshore Senegal, and advised on 23
July 2023 in its ‘Second Quarter Report’ that the first cargo was loaded subsequent to the quarter and commissioning activities and the
safe ramp up of production are expected to continue through 2024.
Based on progress of the Sangomar development and current oil prices, the Board of FAR expects that the full US$55 million will be
received prior to the transaction long stop date in 2027. Gneiss Energy Limited, a UK-based leading energy corporate finance advisory
firm has been appointed as corporate financial advisor in connection with advising and assisting with the potential sale of the Contingent
Payment.
The process of seeking offers for the Contingent Payment has commenced. However, the board notes that no assurance can be given
regarding the receipt by FAR of an acceptable offer or its timing. Any offer that may be received will be considered by the FAR Board in
accordance with its terms.
Other developments
Following are the other key developments during the period.
● The Group has given notice of its surrender of Blocks A2 and A5 effective 16 February 2024. The Company is awaiting the final
certificate of completion from The Gambian government.
● The Gambian office was closed during the March 2024 quarter and the in-country presence is in the final stages of being shut down.
(20min delay)