FAR --Latest from Malcy

Far Ltd

Far has announced that the Ministry of Petroleum and Energy of The Gambia has approved its farm-out to Petronas. They will take 40% of blocks 2 and 5 and in return pay 80% of the cost of the Samo-1 well to a maximum of $45m, Far will remain operator during the exploration phase of the project. Far will now be able to bank the other proceeds which amount to around $17m for the cash element and the back costs.

This is further good news, albeit expected from Far and with the Samo well expected to be formally announced soon will mean that along with news from Senegal the company has a very strong position in West Africa. As Cath Norman, MD of Far said today, ‘this is another milestone for the company’ and for investors I believe that another major chapter is about to start. The shares have eventually performed really well this year and at 12c in my view are still way undervalued, my target price in north of 30 cents…