FAR on the hunt for Senegal partner after renewing exploration...

FAR on the hunt for Senegal partner after renewing exploration blocks

Monday, February 13, 2012
by Bevis Yeo

FAR Limited (ASX:FAR) is now in a stronger position to secure a farm-in partner for its offshore Senegal exploration blocks after the Government confirmed the three blocks had been renewed for a two-year term.

The company had sought the renewal, which also marks its entry into the drilling phase for the blocks, as it believed there was a strong case for drilling wells in the 7491 square kilometre Rufisque, Sangomar and Sangomar Deep production sharing contracts (PSC).

This include its 2086 square kilometre 3D seismic survey that had highlighted prospective plays with stacked anomalies and a very large closure adjacent to a Turonian oil source rock kitchen as well as a report by Senergy that estimated the blocks had total gross unrisked oil-in-place of 2.98 billion barrels and unrisked prospective resources of 697 million barrels of oil.

The 2012 drilling activity by Anadarko Petroleum (NYSE:APC) in Sierra Leone and Liberia, Hyperdynamics (NYSE:HDY) in Guinea, African Petroleum (NSX:AOQ) in Liberia and Gambia as well as Chevron (NYSE:CVX) in Liberia, is also seen as a plus.

While few wells have been drilled on the West African margin, the upcoming activity is an indicator of its prospectivity could also increase the availability of drilling rigs and support vessels.

FAR is seeking cost recovery and a free carry through drilling of the required exploration well in the blocks, which it holds a 90% in.

The company remains fairly cashed up, with A$23.8 million in the bank.

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http://www.proactiveinvestors.com.au/companies/news/25223/far-on-the-hunt-for-senegal-partner-after-renewing-exploration-blocks-25223.html