04 December 2016, Houston — FAR Limited has refuted claims that it cannot exercise its option to farm into the Djiffere block offshore Senegal because of a lack of funds.
“There has been some concern raised about an article that appeared in a little known African newsletter claiming that FAR could not exercise its option to farm into the Djiffere block offshore Senegal because FAR could not raise money to complete the transaction,” FAR Managing Director Cath Norman said.
“The statements made in relation to this issue were false and misleading and FAR has notified the editors. There has been no contact made between FAR and the authors of this newsletter and we have requested that they reveal their source of information and retract the article,” Norman added.
FAR’s obligation under the Djiffere block option agreement was to acquire 150 square miles of 3D seismic data, which was acquired in 2015, therefore the company has met its obligations, Norman said.
“There is no cash payment to be made to the operator for entry into the permit. As reported in FAR’s September quarterly report to the ASX, FAR finished the quarter with a healthy cash balance of $50 million and estimate spending $8 million in the December quarter,” Norman said.
FAR has an option agreement with Trace Atlantic Offshore Limited to earn a 75 percent interest in the Djiffere block (subject to Government approvals). Preliminary processed products from the 3D survey on Djiffere have been arriving over the September quarter with final products expected to arrive at the end of 2016. FAR expects to be ready to make a final decision regarding its option after this time.