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FAR signs new Joint Operating Agreements for Gambian asset

FAR Gambia Ltd, a wholly owned subsidiary of FAR Ltd, has signed new Joint Operating Agreements (“JOA’s”) in respect of the A2 and A5 Blocks in The Republic of The Gambia, with PC Gambia Ltd (a subsidiary of Petroliam Nasional Berhad, PETRONAS). This follows the granting of new Licences for those Blocks by The Government of The Gambia effective 1 October 2019, after which FAR and PETRONAS took the opportunity to update the terms of the existing JOA’s by entering into new JOA’s with effect from 1 October 2019.

FAR remains as Operator under the new JOA’s which better reflect the terms of the new Licences. Efforts to find an additional partner for the drilling of the next well in The Gambia are ongoing with FAR having run numerous data room presentations for interested parties. FAR is working to conclude a farm-out before the restart of the drilling operations.

Three social projects are currently nearing completion in The Gambia. The Gambian joint venture has upgraded the water distribution system for the Sangyang women’s garden and replaced/repaired electrical cabling for Jambanjelly lower basic school. In addition, the Gambian joint venture along with GNPC have commenced work on the Bansang hospital which includes roofing repairs and ward rehabilitation.

Block A2 and A5
FAR has a 50% interest in Block A2 and Block A5 in The Gambia. Both are located to the south of FAR’s Sangomar Field development offshore Senegal. The blocks cover an area
of approximately 2,682km2 within the rapidly emerging and prolific MSGBC (MauritaniaSenegal-Guinea-Bissau-Conakry) Basin and lie approximately 30kms offshore in water depths ranging from 50 to 1,200 metres. In combination, Blocks A2 and A5 have potential to contain prospective resources in excess of 1billion barrels of oil (on an unrisked, best estimate, 100% basis).

Technical and commercial analysis supports drilling of the Bambo well to test the main target of S400 series sands (152 mmbbls, P50, gross), which FAR has mapped as the southern culmination of the Sangomar Field extending into The Gambia. The Bambo prospect has multiple reservoir targets, having two of the main reservoirs in S400 series sand being hydrocarbon-bearing in the Sangomar wells.

Preparations are now underway for the commencement of drilling operations. Initial planning has further highlighted the opportunity to locate a single well to intersect both the main target, S400 series and a shallower, secondary target at the S390 sand (464 mmbbls, P50, gross). The operational team that managed the Samo-1 well campaign was reassembled in Q4 2019 with significant progress being made however drilling activities have currently been suspended in the wake of COVID-19 and will recommence when it is safe to do so.

FAR Management said “We are delighted to enter into new JOA’s with PETRONAS in respect of the A2 and A5 Blocks, following the granting of the new Licences last year. This is testament to an excellent partnership between FAR and PETRONAS. The new JOA’s and Licences provide us with up-to-date agreements for our ongoing work on these Blocks, where we are highly encouraged to continue exploring in this proven and prospective basin.”

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