farmin with cairn in senegal, page-22

From The Australian....

Cairn joins junior in Senegal oil deal

by: Matt Chambers
From: The Australian
March 20, 2013 12:00AM

AFRICAN-focused oil junior FAR has inked an $US80 million ($77m) farm-in deal with British-listed Cairn Energy for offshore oil exploration blocks in Senegal, in what is expected to be a forerunner to deals on the other side of the continent.

The West African agreement, announced yesterday, comes as FAR progresses farm-in talks on the L6 and L9 blocks off the Kenyan coast in the heated East African gas space, where there have been huge offshore gas discoveries to the south in Mozambique and Tanzania.

In Senegal, Cairn has agreed to fund an exploration well and testing to a cap of $US80m, including $US9.8m of costs already incurred by FAR, for a 65 per cent working interest and operatorship of three offshore blocks.

FAR will keep a 25 per cent interest in the permits while Senegal's national oil company, Petrosen will hold a 10 per cent carried stake.

"FAR has secured a highly experienced operator to drill and fund it through the first exploration well to be drilled off the Senegalese coast for some years," FAR managing director Cath Norman said.

"Success on this first exploration well would open up the significant exploration upside potential of FAR's Senegal blocks."

FAR stock finished unchanged at 4.1c.


Link to the article:
http://alturl.com/quyh5