FAR Going Ahead with Drilling a Well off Gambia in October
FAR Ltd has on Thursday announced the company’s upcoming program and a new corporate presentation after receiving $128m from the Senegal sale process.
The next step is to drill the Bambo-1 exploration well in The Gambia in Q4, fully funded. The rig is contracted and expected to mobilize 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 licenses held in 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 good costs, contingency, success case options, and expenditure on other assets and general administration costs will be funded from cash at hand following the capital return.
FAR has no debt and is planning a capital return of some A$0.80 per share, and they are expecting to return to the market tomorrow.