FAR Limited (Company or FAR), an independent, Africa focused, oil and gas exploration
company, provides its quarterly activities report for the quarter ended 30 September 2024.
Highlights
• Woodside Energy advised the ASX on 16 October 2024 in its ‘Third Quarter Report’ that the
Sangomar field offshore Senegal achieved nameplate capacity with gross production rates of
100,000 barrels per day.
• FAR sought offers for a potential sale of the maximum value of US$55 million Contingent Payment
from Woodside Energy in relation to the RSSD Project in Senegal. Several offers were received,
however the Board does not consider that the offers were sufficiently attractive at this time
compared with holding the Contingent Payment.
• Cash at quarter end was US$2.0 million (unaudited).
Commenting on the activities during the quarter, Independent Chairman Patrick O’Connor said:
“As previously announced, the Company has sought offers with respect to its maximum value of US$55
million Contingent Payment due from Woodside Energy following the commencement of first oil
production from Sangomar. Whilst several offers were received, they were not considered sufficiently
attractive at this time compared with holding the Contingent Payment. We remain open to the potential
monetisation of this contingent asset.”
Woodside Energy Contingent Payment
As part of the consideration for the sale of its interest in the RSSD Project in Senegal to Woodside
Energy, FAR received rights to a Contingent Payment with a maximum value of US$55 million.
The Contingent Payment comprises 45% of entitlement barrels (being the share of oil relating to FAR’s
previously held 13.67% of the RSSD Project comprising the Sangomar Field exploitation area of interest),
multiplied by the excess of the crude oil price per barrel and US$58 per barrel (capped at US$70 per
barrel). The Contingent Payment terminates on the earliest of 31 December 2027, three years from the
first oil being sold (excluding periods of zero production), or a total Contingent Payment of US$55
million being reached, whichever occurs first.
Woodside Energy’s Third Quarter Report for the period ended 30 September 2024 which was released
to the ASX on 16 October 2024 noted the following in relation to Sangomar:
o Achieved nameplate capacity of 100,00 barrels per day in July 2024.
o The final Phase 1 well was drilled and completed in the period. The Sangomar drilling
campaign is now complete marking the successful drilling and completion of 24 development
wells.
o Start-up of gas and water injection systems has commenced, and commissioning activities are
expected through 2024.
The Company sought offers for the Contingent Payment during the Quarter. Several offers were
received, however the Board does not consider that the offers were sufficiently attractive at this time
compared with holding the Contingent Payment. The Board remains open to the potential monetisation
of this Contingent Payment.
Corporate
Cash Balance and Expenditure (unaudited)
FAR had US$2.0 million of cash at the end of the quarter. During the September 2024 quarter
expenditure totalled US$0.2 million, comprising mainly corporate and administration costs
Corporate and administration expenditure in the September 2024 quarter included mainly corporate
and compliance costs. Exploration expenditure in the quarter comprised the finalisation of Gambia incountry administration and support costs.
As detailed in Item 6.1 of the accompanying Appendix 5B, the Company discloses that the aggregate
payments to related parties and their associates during the quarter was US$68,000. The payments
during the quarter represent remuneration paid to Non-Executive Directors.
This ASX announcement has been approved for release by the Board of FAR Limited.
