First Australian Resources Ltd

Transaction Type
Sellers
Marketers
Post Date
Estimated Price
MM
Description

First Australian Resources Ltd. has retained Envoi Ltd. to find a partner to help them develop three large, prospective licenses in offshore Senegal.

The licenses include the Sangomar Offshore, Rufisque Offshore and the Sangomar Deep Blocks. FAR has committed to the second renewal period, which commenced in November 2010 and to drilling the first well in the next two years.

FAR is offering up to a 50% working interest in the three blocks in return for a negotiable contribution towards the cost of the planned well, whose estimated cost is between $50 and $65 million, plus an equity share of about $22 million in back costs.

A two-year extension was granted in February 2012 and requires drilling of at least one exploration well before February 2014.