A little more of the same....
10:42 Fri 27 Dec 2019
FAR Ltd entering key development phasein 2020
on path to becoming oil producerThe company aims toraise up to $30 million in an SPP after securing $146 million in a placement.
The Sangomar Oil FieldJV partners plan to deliver first oil to market in early 2023
FAR Ltd (ASX:FAR) will enter a key development phase in 2020 as the Senegal joint venture begins construction and execution works for development of the Sangomar Oil Field.
Theproject offshore Senegal is one of the world’s largest oil discoveries thisdecade and is set to see FAR become an oil producer in 2023.
Share purchase plan
In a letter toshareholders seeking support for approval of a share purchase plan (SPP) toraise up to $30 million, chairman Nic Limb said the company had settled on atraditional financing mix of equity and bank debt with the sole focus tomaximise shareholder returns.
Hesaid this decision had been made after FAR had spent considerable time andeffort working on various funding alternatives.
$146 million placement
“We are well advancedwith our banking negotiations and have previously announced some of thosedetails.
“Equityneeds to be in place and the project advanced before we draw bank debt.
“Tofacilitate this, we have finalised a $146 million placement of new shares tomajor investors both within Australia and globally.
“Thiscapital raising will require shareholder approval at a general meeting of thecompany on January 16, 2020.”
Pleased with response
The chairman said thecompany was very pleased with the response from existing shareholders,including FAR’s largest shareholder who subscribed in the placement componentof the capital raise to increase their holding in the company substantially.
“Wehave also had great support from a number of large Australian and Internationalinvestors.
“Theintention of the SPP is to enable our smaller shareholders to participate inthis capital raising on the same terms and conditions as these largeinvestors.”
TheSangomar Oil Field development will consist of a Floating Production, Storageand Offtake (FPSO) vessel that will be connected to a subsea infrastructure viaoil producing wells and gas and water reinjection wells.
Thisfield has a footprint of over 350 square kilometres and the joint venture withWoodside Energy will be developing 640 mmboe in phases.
A little more of the same....Tharun George, CFA 10:42 Fri 27 Dec...
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