GAMBIA: Bambo-1 Well to be Side Tracked Driving Costs – FAR
FAR advises that the Bambo-1 well has drilled 3216m MDBRT (measured depth below
the rotary table) of a total planned depth of 3450m MDBRT. Oil indications have been detected in rock
cuttings and hydrocarbons have been interpreted across several intervals in the well from LWD data
(logging whilst drilling). Further wireline logging needs to be completed to confirm the finding.
Drilling operations were temporarily halted at the current depth after significant fluid losses were
experienced. These fluid losses were stabilised in accordance with standard offshore operating
procedures, and FAR is now planning to plug and side-track the well to continue drilling to the
planned total depth. Prior to side-tracking and provided hole conditions remain stable, FAR is
undertaking a wireline logging program in the current well bore.
FAR estimates that the cost to complete the well will increase from a total of US$51.4M to
US$61.27M, an increase of US$9.87M or US$4.935M net to FAR. FAR forecasts a cash balance of
US$37M after the completion of the well, inclusive of the increase in Bambo-1 well costs. The
addition of the side-track program has extended the period of operations which is now expected to
be completed by the end of December 2021.
The well has been designated a “tight hole” by FAR and JV partner Petronas and as such, no
information related to depth or formation is likely to be provided during the drilling beyond what is
required to meet ASX continuous disclosure obligations. Market participants should exercise care
before transacting in FAR shares until such time as FAR, as Operator of the Joint Venture, makes
formal ASX disclosures regarding well results.
FAR’s Managing Director, Cath Norman, said “FAR is pleased with the experienced drilling team and
contractors who have acted to quickly manage and adjust the Bambo-1 drilling program to suit the
geological setting and best meet the objectives of the drilling program. FAR is well placed to achieve
these objectives through the side-tracked well and in particular drilling through the as yet undrilled
Soloo Deep prospect. We are encouraged by the presence of oil in potential reservoirs and look
forward to completing the well in the coming weeks.”