FAR signs farmout deal for permits offshore Senegal

Perth-based FAR Ltd. (formerly First Australian Resources) has received $5.5 million (Aus.) from UK firm Cairn Energy PLC in a farmout deal in its exploration permits offshore Senegal.

The money from the deal increases FAR’s cash position close to $30 million (Aus.) enabling it to participate in two planned exploration wells in its African permits this year.

The deal with Cairn is one of two farmouts announced last year, the other being with US major ConocoPhillips for a similar amount.

Two exploration wells, expected to cost a total of $200 million, will be drilled in the permits in 2014. FAR has retained 15% interest in each, but passed operatorship across to Cairn which will have 40%. ConocoPhillips will have 35% and Senegal national oil company Petrosen has the remaining 10% as a carried interest in the drilling program.

The wells will be drilled back-to-back using the dynamic positioning Transocean’s Cajun Express semisubmersible rig that has begun a multijoint venture campaign operated by Cairn off West Africa.

The first of the wells will spud before the end of March. It is targeting a shelf play with potential to hold 600 million bbl of oil.

The second well will be a deepwater fan play with a 900 million bbl potential.

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring


The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected