far ltd moves closer to deep water drilling

Half glass full for FAR. Absolutely.

As suggested in article below by ME, FAR will be on FRONT STAGE in 2011 if extension is granted meaning partner found and extension only required for signing of JV and drilling, IMO.

FULL ARTICLE ► Friday, September 24, 2010

Far Ltd moves closer to deep water drilling start in Senegal

Western Australia based Far (ASX: FAR) has moved a step closer to drilling in a highly prospective Senegal Blocks with a request for entry to a second renewal period on Rufisque and Sangomar Offshore and Sangomar Deep Offshore Senegal Blocks, from the Senegal Minister for Energy.

FAR has given notice under the terms of the Production Sharing Contract (PSC) of its intention to enter the next exploration phase, known as the second renewal period, which commences on 23 November 2010.

The PSC terms currently specify the requirement to drill a well within 2 years of entering the renewal period backed by a surety of US$5 million that is forfeitable in the event of non performance.

Michael Evans, chief executive, said, "This is another landmark for FAR and its shareholders."

"Provided the renewal is granted FAR will be front of stage during 2011 on what is shaping up to be an exciting year for deepwater drilling along this lightly explored part of West Africa."

FAR's renewal request is for a term of 3 years and is subject to Ministerial approval, while requiring a Presidential Decree.

The request is supported by Petrosen, the National Oil Company of Senegal.

During the week FAR held meetings with Petrosen and the Minister who provided verbal support for FAR's renewal request.

http://www.proactiveinvestors.com.au/companies/news/10289/far-ltd-moves-closer-to-deep-water-drilling-start-in-senegal-10289.html

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