FAR Ltd strikes Block L6 farm-in deal
THE WELL SPUDDER: FAR Ltd (ASX: FAR) has received approval from the Ministry of Energy and Petroleum in Kenya for the first farm-in deal on the company’s onshore and offshore Kenya exploration permit, Block L6, located in the Lamu basin.
The farm-in deal has been struck with international petroleum logistics, marketing, trading, exploration and production company, Milio International.
Milio is based in Dubai and is looking to expand its commercial foot-print in East Africa.
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Source: Company announcement
“We are pleased that the Cabinet Secretary for the Ministry of Energy and Petroleum has approved our recently announced farm out agreement for Block L6, Kenya,” FAR ltd managing director Cathy Norman said in the company’s announcement to the Australian Securities Exchange.
“We believe this deal, which FAR has secured funding for an onshore exploration well following a seismic survey, will evaluate the significant potential of the onshore part of Block L6 and unlock the potential of the wider Lamu basin in which FAR has a large acreage position.”
Under the terms of the deal FAR will be fully-funded through the drilling and testing of an onshore exploration well in Block L6, which is anticipated to spud in the first half of 2015.
FAR will also be fully-funded through the acquisition, processing and interpretation of a regional onshore 1,000 kilometre 2D seismic survey, which the company expects will confirm a number of prospects in onshore L6 as drill targets.
This seismic program is expected to commence in April 2014.
FAR retains a 24 per cent interest in the onshore part of Block L6 while preserving its 60 per cent interest in the offshore part of Block L6, which the company has estimated to contain, “substantial prospective resources”.
FAR indicated it is currently in discussions with parties to farm-in to drill an offshore well in Block L6.
“FAR has now completed three farm-out deals within the last 12 months and as a consequence is fully-funded through three high-impact exploration wells in the near future,” Norman said.
“Next month FAR expects to start drilling the first of two company making offshore wells in Senegal which are together targeting over 1.5 billion barrels of un-risked prospective resources.
“FAR’s farm in partners in Senegal are ConocoPhillips and Cairn Energy PLC.”
Email: info@far.com.au
Website: www.far.com.au