farmin with cairn in senegal

SENEGAL FARM OUT SPEARHEADSOFFSHORE WELL INEARLY 2014
• FAR secures major UK listed company Cairn Energy PLC as partner and Operator for high impact
well
• FAR fully carried through first exploration well - expected early 2014
• FAR to be paid approximatelyUS$10million for back costs
• FAR and Cairn Energy PLC to enterinto an alliance offshore Senegal
FAR Ltd (“FAR”ASX:FAR) is pleased to announce a farm in agreement for its three blocks offshore
Senegal in West Africa to Cairn Energy PLC (“Cairn”), amajorUK listed oil and gas company.
Pursuant to the farm in agreement, which is subject to Senegalese Government approval, Cairn will
operate and carry FAR through an exploration well expected to be drilled in early 2014.
Under the terms of the farm in agreement Cairn is to acquire a 65% working interest (WI) and
Operatorship by fully funding 100% of the costs of an exploration well and testing to an investment
cap of US$80 million. As part of the farm in agreement, Cairn will pay FAR US$9.8 million for past
costsincurred on the block. FAR willretain a 25% WI.
FAR’s three contiguous Senegalese blocks – Rufisque, Sangomar and Sangomar Deep – h