Although the Senegalese subsidiary of FAR Ltd is considering selling some or all of its assets, the Gambian wholly owned subsidiary of FAR has just signed a Joint Operating Agreement (JOA) in respect of the A2 and A5 Blocks in the Republic of Gambia.

The agreement was signed with PC Gambia, a subsidiary of the Malaysian oil and gas company, Petroliam Nasional Berhad (PETRONAS) and was announced yesterday, 25^th June 2020.

This comes after the Gambian Government granted the licenses of the blocks from October 1, 2019. The new agreement is an update on the provisions of the existing one that went into effect in October last year. Efforts to find an additional partner for the drilling are currently ongoing and FAR has been scanning through interested parties in the country. FAR remains as operator and is working to complete a farm-out before the drilling operations restart.

After the signing of the agreement, the management of FAR, in a press release, said, “We are delighted to enter into new JOA’s with PETRONAS in respect of the A2 and A5 Blocks, following the granting of the new Licences last year. This is testament to an excellent partnership between FAR and PETRONAS. The new JOA’s and Licences provide us with up-to-date agreements for our ongoing work on these Blocks, where we are highly encouraged to continue exploring in this proven and prospective basin.”

FAR has a 50% interest in Block A2 and A5 in the Gambia, which are both located to the south of the company’s Sangomar Field development offshore Senegal. The blocks cover approximately 2,682 km2 within the MSGBC (Mauritania-Senegal-Guinea-Bissau-Conakry) Basin and lie approximately 30 kilometres offshore in water depths ranging from 50 to 1,200 metres. The blocks are said to be capable of having over 1 billion barrels of oil on an unrisked best estimate 100% basis.

The operational team of the company that managed the Samo-1 was called upon after the granting of the license and progress had already been recorded regarding drilling activities, though it has been suspended due to the COVID-19 pandemic. The company says work will only resume when it is considered safe to do so.

According to the release, “Technical and commercial analysis supports drilling of the Bambo well to test the main target of S400 series sands (152 mmbbls, P50, gross), which FAR has mapped as the southern culmination of the Sangomar Field extending into The Gambia. The Bambo prospect has multiple reservoir targets, having two of the main reservoirs in S400 series sand being hydrocarbon-bearing in the Sangomar wells. Preparations are now underway for the commencement of drilling operations. Initial planning has further highlighted the opportunity to locate a single well to intersect both the main target, S400 series and a shallower, secondary target at the S390 sand (464 mmbbls, P50, gross).”