https://www.malcysblog.com/2021/07/oil-price-far-empyrean-and-fin...

https://www.malcysblog.com/2021/07/oil-price-far-empyrean-and-finally/

Far Limited

It seems that all is back on for Far after its traumatic recent history, judgement differ which I understand but I personally felt that they were hard done by, an unfortunate series of events one might say, others are less gratuitous.

For today the company announce their upcoming programme and have released a new corporate presentation. They have received $128m from the Senegal sale process and have no debt and are planning a capital return of some A$0.80 per share and they are expecting to return to the market tomorrow.

Next stop is to drill the Bambo-1 exploration well in The Gambia in Q4 which is fully funded. The rig is contracted and expected to mobilise in the second half of October with a spud date of late October/early November. The well is part of the 2021 work program for the A2 and A5 licences held offshore Gambia where FAR is the Operator and has a 50% working interest. The Bambo-1 well is designed to drill three prospects with a total estimated recoverable prospective resource of 1,118 mmbbls.

The approved budget for the well is US$51M (FAR share US$25.5M) with US$6.5m expended to date. FAR’s share of the well costs, contingency, success case options as well as expenditure on other assets and general administration costs will be funded from cash at hand following the capital return.

Elsewhere the company are to farm-out or sell the Guinea-Bissau asset and drill or drop the WA-458-P asset thus tidying up the portfolio. The company has a new board led by a new Chairman but Cath Norman remains as Managing Director and I understand the genuinely high quality technical team who in my view were prime contributors to the Senegal discovery remain intact.