FAR Ltd. has provided notices of withdrawal from its interests in the Esperanca Blocks 4A, 5A, and Sinapa block 2, offshore Guinea Bissau, to the Government of Guinea Bissau and partner Petronor E&P Ltd.
Joint efforts by FAR and operator Petronor to collaboratively farm-down have been unsuccessful. FAR has already met minimum financial commitments associated with the licenses, and there are no 2022 commitments in place. FAR does not expect to incur any new material expenses related to these interests.
FAR has impaired $2.7 million of capitalized costs associated with the Guinea Bissau project in 2021 and previously disclosed a contingent liability of up to $13 million payable in the event of production, and a contingent withholding tax liability of $568,000 in the event of development.
In the event of withdrawal, FAR will not participate in any future development and production relating to these interests therefore the contingent liabilities will no longer exist.
The offshore licenses are in the prospective trend in Mauritania, Senegal, Gambia, Guinea-Bissau, and Guinea-Conakry (MSGBC) basin. Gross recoverable prospective resources are estimated at 498 million bbl.
Petronor is operator of the licenses (78.57% ) with FAR holding the remaining 21.43%.