A proprietay article from MergerMarket (10/11/2016) FAR Limited...

A proprietay article from MergerMarket (10/11/2016)

FAR Limited [ASX:FAR], an Australian oil and gas company, is seeking an equity partner for the Djiffere block in Senegal, Gordon Ramsey, executive manager for business development, said.
FAR would ideally want a full carry on the driling of a well in exchange for a partner taking an equity stake in Djiffere, Ramsey said. The capex for ...drilling this well is estimated to be between USD 35m to USD USD 40m, he added.
FAR entered into a farm-in option agreement for Djiffere with TAOL Senegal Ltd, a subsidiary of Trace Atlantic Oil. Under this agreement, FAR has the option to earn a 75% working interest in the Djiffere Block by drilling an exploration well before 31 July 2018, and subject to Government approvals, according to the company.
To exercise this option FAR would need an equity partner to take a stake in the block, to de-risk the project, Ramsey said. The company has not decided the stake size it would likely farm down, Ramsey added.
If FAR doesn’t find a partner, it won’t exercise the option to acquire the stake in Djiffere, Ramsey said.
The Djiffere Block offshore Senegal is near FAR’s Rufisque, Sangomar and Sangomar Deep blocks, according to the company.
Additionally, FAR is looking for a farm-in partner for its L6 block in Kenya, which it has a 60% stake in, Ramsey said. Milio International holds the balance.
L6 Block has a best estimate prospective resource of 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas, according to the company.
FAR has a market capitalisation of AUD 330.15m.
by Katie McQue