FAR raises $46.7 million

THE ROADHOUSE BOWSER: FAR Ltd (ASX: FAR) has completed a placement to institutional and sophisticated investors to raise $46.7 million.

The raising comes via the issue of approximately 425 million shares at 11 cents each.

The capital raising follows the company’s oil discovery in FAN-1, offshore Senegal with its partners Cairn Energy plc, ConocoPhillips and Petrosen.

 

Location of the two Senegalese wells in the FAR 3D seismic area, offshore Senega. Source: Company announcement

 

The semi-submersible drilling unit ‘Cajun Express’ used to drill the FAN-1 well has now mobilised to complete the second exploration well in the Senegalese drilling program, SNE-1.

“We won very strong support for this capital raising,” FAR managing director Cath Norman said in the company’s announcement to the Australian Securities Exchange.

“Given the state of the market we are very pleased to have been oversubscribed with particularly strong support from Australian institutions and our existing shareholders.

“The discovery of oil in FAN-1 and an extended period of unscheduled maintenance have resulted in an increase to the forecast cost of the Senegal drilling program that exceeds our funding cap for both wells.

“The additional funds raised will now allow us to complete this very exciting drilling program.

“The discovery of oil in FAN-1 has gone some way to increasing the chance of success in the SNE-1 well so we eagerly await the results from this next well and hope to repeat the success of FAN-1.

“FAR also looks forward to advancing our other exploration ventures in Kenya, Guinea Bissau and Australia and embarking on new ventures.”

This capital raising leaves FAR with approximately $85 million of cash and in a very strong position from which to complete our near term corporate objectives.”

Email: info@far.com.au

Website: www.far.com.au