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ASX ANNOUNCEMENT AND MEDIA RELEASE
SENEGAL LICENCE UPDATE
FAR requests entry to Second Renewal Period on Rufisque and
Sangomar Offshore and Sangomar Deep Offshore Senegal Blocks
FAR has given notice under the terms of the Production Sharing Contract (PSC) to
the Minister for Energy for the Republic of Senegal of its intention to enter the next
exploration phase (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.
FAR considers there is a compelling case for going forward into the drilling phase for
the following reasons:
 The Licence renewal would provide more certainty to potential farminees.
 FAR would seek recovery of the US$5m surety in any farmout.
 The renewal would provide additional time to procure a drilling partner. A
number of potential partners are currently studying the data.
 The first deepwater well ever drilled in the region is planned by Ophir for the
first quarter of 2011. A successful outcome would impact FAR?s Licences;
stimulate regional activity and provide more certainty on drilling costs.
 2011 is shaping up to be a landmark year for deepwater exploration generally
along the Central Atlantic Margin with wells earmarked for drilling by Ophir
(AGC), Anadarko (Sierra Leone/Liberia), Dana (Guinea) and African
Petroleum (Liberia).
 Recent transactions in Liberia and Gambia (abutting FAR?s Senegal licence
area) by NSX listed African Petroleum provide strong independent evidence
supporting the underlying value of FAR?s Licences.
FAR's renewal request is for a term of 3 years; is subject to Ministerial approval and
requires 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.
FAR Ltd ASX Release 24Sept10 Page 2
At an earlier seminar held in Dakar involving representatives from Petrosen, the
Ministry and the holders of Licences in Senegal FAR provided valuable input in
relation to the terms of licences governing deepwater exploration where long lead
times were involved.
FAR will issue a further ASX release once a formal Ministerial decision has been
conveyed.
Commenting on the Release FAR's chief executive Michael Evans 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."