FAR receives government approval for acquisition in the Gambia By Martin Kovacs, 3 Jul 2017

FAR Limited has advised that the government of the Republic of the Gambia has approved assignment to it of an 80% interest in the offshore blocks A2 and A5, in the Mauritania-Senegal-Guinea-Bissau Basin, from Erin Energy Corporation.

FAR advised that under the terms of the farm-in agreement, a wholly owned subsidiary has acquired the interest and operatorship of the blocks, with FAR to make an upfront payment of US$5.18 MM and fund up to US$8 MM of Erin’s share of the cost of an exploration well, expected to be drilled in late-2018.

If Erin’s share of the well costs is less than US$8 MM, the balance is to be paid in cash, FAR stated, with FAR’s share of the cost of the well expected to be in the order of US$25–30 MM.

FAR stated that from 1,504 km2 of modern 3D seismic data acquired in the blocks it has identified prospects similar to the shelf-edge plays it is targeting in Senegal, with it having mapped three potentially drillable prospects and leads.

“FAR is very grateful to have received formal approval from the government of the Republic of the Gambia for this assignment of interest to FAR,” FAR Managing Director Cath Norman commented. “We look forward to working with the government and our joint venture partner Erin Energy to carefully and thoroughly explore these highly prospective offshore blocks.

“Our discoveries immediately to the north in offshore Senegal provide significant encouragement for the future discovery of oil and gas in blocks A2 and A5 in the Gambia. The significant prospectivity that we have identified in blocks A2 and A5 are analogous play types to those successfully drilled by FAR in Senegal, providing high potential to create value for both the people of the Gambia and FAR shareholders.

“FAR is committed to building a strong strategic partnership with the government of the Republic of the Gambia and looks forward to working with the government and Erin Energy.”