FAR 0.81% 6.2¢ far limited

Far Ltd Takes Aim At NWS

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    Lauren Barrett

    Thursday, January 29, 2015 - 7:50pm
    Far Ltd Takes Aim At NWS

    Despite touting the recent success of its exploration efforts in Africa, Far Limited isn’t turning its back on all of its Australian acreage with the company confirming it will undertake a speculative 3D seismic survey to evaluate its permits in the North West Shelf.

    The Melbourne-based company said in its December quarterly report today that it planned to participate in the seismic survey late January having initially planned the survey for late 2014.
    The survey will evaluate its 100 per cent-owned WA-457-P and WA-458-P permits on the NWS offshore Western Australia.

    In mid-July, FAR Ltd was awarded a 12 month extension to the current exploration period to allow it to acquire data in an optimum weather window and take advantage of vessels in the region.

    FAR has assessed the prospective resources in the two blocks to be approximately 450 MMbbls of oil.
    While the company is pushing forward with activities in the NWS, the company said it would relinquish its remaining Australian acreage in the onshore Canning Basin.

    “FAR will withdraw from its remaining onshore Australian interests in the next quarter as they are not in line with the company’s exploration or funding strategy going forward,” Far managing director Cath Norman said.
    While Far lamented the lagging oil price, Norman said there was an upside to the price fall that the company could take advantage of.

    “Along with the decline in oil prices, there has been a commensurate dramatic fall in the daily lease rates for offshore rigs,” she said.

    “FAR’s joint venture partner, Cairn Energy has stated that the forthcoming appraisal wells could be completed for US$30-40 million (gross), a substantial reduction in the cost of drilling the two discovery wells.

    “In the case of a 3-well drilling program commencing late in 2015, FAR’s 16.67% share of this possible program could be paid for with our current cash reserves.”

    Far along with joint venture partners Cairn, ConocoPhillips and Petrosen made two oil discoveries offshore Senegal in the December quarter which has driven Far to place the Senegal project at the forefront of its priorities.
    Well analysis is ongoing and a broader evaluation work program and plans for future exploration on the block are not expected to be finalised until late April.

    “FAR looks forward to the forthcoming quarter and releasing information regarding progress of the evaluation of the Senegal well data and future plans for the project as they are agreed by the joint venture,” Norman said.
    Far finished the December quarter holding $67 million cash with no debt.
    Shares in Far fell 6.2 per cent to 9.1 cents at midday AEST.

    Lauren Barrett can be reached at [email protected]
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