1 April 2009ASX ANNOUNCEMENT AND MEDIA RELEASEFAR ANNOUNCES SALE...

1 April 2009
ASX ANNOUNCEMENT AND MEDIA RELEASE
FAR ANNOUNCES SALE AGREEMENT ON CHINA INTERESTS
As foreshadowed in earlier ASX releases, FAR has reached agreement to sell its 5 percent interest in
Beibu Gulf Block 22/12.
The sale price of US$8 million is to be paid in three tranches
1. US$2 million within 14 days
2. US$3 million upon approval of an Oilfield Development Program (“ODP”) or if commercial
development of the project proceeds
3. US$3 million once the project has produced 1 million barrels of oil (gross).
The buyer is South Sea Oil Pte.Ltd., a subsidiary of the South Korean Majuko Group. Majuko is a
South Korean private company which has interests in Oil and Gas assets in North Africa, the Middle
East and Russia.
FAR has informed CNOOC of its intention to sell its interest to the Majuko Group and CNOOC has
indicated that it is ready to accept the Majuko Group as a new partner.
The sale will involve the disposal of FAR’s wholly owned subsidiary Oil Australia Pty Ltd being the
entity that holds the Beibu Gulf Interests.
The Block 22/12 Joint Venture comprises*:
Roc Oil (China) Company 40%
Horizon Oil Limited 30%
Petsec Energy Ltd 25%
Oil Australia Pty Ltd 5%
*CNOOC is entitled to participate up to a 51% funding equity level in any commercial development.
Commenting on the Sale Agreement FAR’s executive Chairman Michael Evans said:
This is another milestone for FAR following which the company will be free to focus on other
opportunities that generate greater leverage for its shareholders. At the same time the introduction of
a partner with stronger financial credentials will benefit the continuing participants in the Beibu Gulf
Project, clearly a “win win” situation for all concerned.
The sale, coming on top of the recent placement and Agreement with Shell on Senegal, places FAR in
a very robust financial position and poised to take advantage of new opportunities as they arise.
For information on FAR’s drilling activities visit our website at www.far.com.au