by Daniel J. Graeber
Washington (UPI) Jul 3, 2017
West African oil and gas explorer FAR Ltd. said Monday its footprint in the region expanded after the Gambian government approved a major buy-in.
Under the terms of an agreement, FAR takes on 80 percent of the interest in two blocks off the coast of Gambia from its partner, ERIN Energy Corp. The deal requires FAR to commit to as much as $8 million in financing for the drilling of an exploration well by the end of next year.
With a hold on the reserves just north of Gambian waters in Senegal, FAR said it was setting itself up as a major player in the broader Mauritania-Senegal-Guinea-Bissau basin in West Africa.
"We look forward to working with the government and our joint venture partner ERIN Energy to carefully and thoroughly explore these highly prospective offshore blocks," Managing Director Cath Norman said in a statement.
Combined, the two blocks offshore Gambia are estimated to hold at least 1 billion barrels of oil. With an estimated 1.5 billion barrels offshore Senegal, FAR, which has headquarters in Australia, said the larger region is "clearly one of the world's exploration hot spots."
On top of a debt-free first quarter, FAR was over-subscribed for a placement of 1 billion shares, generating around $60 billion in capital it will use to fund drilling, evaluation and pre-development programs.
FAR and Woodside Petroleum are two Australian energy companies included in a consortium with Cairn Energy exploiting the reserves off the coast of Senegal. Parties to the effort are at odds over the transfer of assets from Conoco Phillips to Woodside, which aims to transition to the role of the operator.
FAR Ltd issued a plea to an international court in Paris to intervene in the spat. Woodside said the government of Senegal has confirmed its role in the joint venture.
Washington (UPI) Jun 30, 2017
U.S. government agencies said they've opened up new levers for oil and natural gas development with new pipelines, export and offshore drilling opportunities. "We will be dominant," U.S. President Donald Trump said during an event at the nation's Department of Energy. "We will export American energy all over the world." A pro-oil president known as a trade protectionist, the Trum ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|