News: FAR FAR Says Debt Financing Not Proceeding As Expected

April 30 (Reuters) - FAR Ltd (FAR) :

• DEBT FINANCING NOT PROCEEDING AS EXPECTED DUE TO COVID-19 AND OIL PRICE IMPACT ON DEBT MARKETS
• COST CUTTING EFFORTS UNDERWAY
• SANGOMAR DEVELOPMENT WAS RUNNING US$117M UNDER BUDGET FOR YEAR TO END OF MARCH AND EXPECT THIS TREND TO CONTINUE
• COMMENCED PROCESS TO SELL ALL OR PART OF INTEREST IN SENEGAL RSSD PROJECT IN PARALLEL WITH INVESTIGATING ALTERNATIVE SOURCES OF FINANCE
• COVID-19 AND OIL PRICE COLLAPSE ADVERSELY IMPACTED FAR'S FINANCING PLANS FOR SANGOMAR FIELD DEVELOPMENT
• NOT POSSIBLE AT THIS TIME TO ACCESS SHORE BASE FOR DRILLING AT GAMBIA, SO HAVE SUSPENDED ACTIVITIES
• COST CUTTING EFFORTS, REDUCTION IN SPEND FOR SANGOMAR DEVELOPMENT MEANT FORECAST CASH POSITION AT Q1 END US$74M VERSUS ACTUAL US$80.3M FOR QUARTER
• FOR UPCOMING QUARTER, SEES US$5M OF EXPLORATION AND EVALUATION EXPENDITURE
• FOR UPCOMING QUARTER, SEES US$27M OF DEVELOPMENT EXPENDITURE & US$1.2M IN CORPORATE COSTS