Australian independent FAR has had its March 2017 application to acquire an 80% operating interest in two West African offshore blocks A2 and A5 approved by the Gambian government.
Just over three months ago FAR agreed to acquire the interest, covering an area of 2,682 km², from New York and Johannesburg-listed explorer Erin Energy Corporation (formerly known as Camac) which will retain a 20% interest.
FAR said it will pay $5.18mm cash to Erin – but additionally fund Erin up to $8mn through an exploration well expected to be drilled late 2018.
FAR said Gambia blocks A2 and A5 are adjacent to, and on trend with, the world class SNE oil field discovery offshore Senegal – including the Cairn-operated SNE oilfield which FAR, with a 15% interest in SNE, says has prospective resources (at 100%) in excess of 1bn barrels of oil. They have also included some gas.
FAR last month referred its dispute over the sale last year of Conoco’s 35% interest to leading Australian producer Woodside in three offshore Senegal blocks, which include the SNE oilfield, to international arbitration. Woodside said that dispute might delay development of the SNE field.(Source: Mark Smedley at Natural Gas World)