Following Shell’s decision, FAR will be paid US$3 million within...

Following Shell’s decision, FAR will be paid US$3 million within ten business days and in
addition recoup approximately $US0.5 million in past expenditures.
FAR will retain its 90 percent interest in the Licences and Petrosen will hold the remaining 10
percent. FAR will continue as Operator and retain full authority to use the technical report
and CSEM data for all purposes including the purpose of seeking an alternative farm in
partner.
FAR is now free to commence discussions with other potential farmin partners and to
facilitate this process will seek an extension to the current Licence period that expires on 22
November 2009.
BACKGROUND TO DEEPWATER PROGRAMME OFFSHORE SENEGAL
The Licence in respect of Sangomar Offshore, Rufisque Offshore and Sangomar Deep
Offshore, was issued in July 2004. FAR farmed into the Licence area in January 2006 by
contributing to a 2,050 square kilometre 3D seismic programme.
In November 2008, FAR was granted a one-year extension to the current exploration term.
During the first quarter 2009, FAR concluded an Agreement with Shell to conduct a CSEM
Data Acquisition and Geophysical Evaluation Programme and increased its interest in the
Licences (aggregating 7,491 square kilometres) to 90 percent and assumed operatorship. The
CSEM acquisition was completed on 26 May 2009 and was followed by processing and
evaluation performed by Shell with a technical report to be delivered by 21 September 2009.
Senegal Exploration Summary
Deep water play with significant hydrocarbon potential in the Senegalese portion of
the productive Mauritania-Senegal-Guinea Bissau Basin.
The offshore Licenses cover an area of 7,491 sq km over the shelf, slope and basin
floor, with potential multiple untested plays in a proven hydrocarbon system.
A 2086 sq km 3D acquired during 2007 highlighted Multiple Santonian age fan
systems with stacked amplitude anomalies, and a very large Albian to Neocomian
shelf edge closure adjacent to a Turonian oil source rock kitchen.
Excellent fiscal terms by world standards.
FAR (Operator) is partner with Petrosen (National Oil Company).
The northwest African margin remains relatively under-explored.