Australian independent explorer FAR will move ahead with drilling offshore The Gambia by the end of October, amid plans to distribute excess cash back to its shareholders.
Located in shallow waters near the Senegalese border, the Bambo-1 well will test three prospects that hold an estimated 1.12 billion barrels of recoverable reserves. As the operator, FAR will contribute $25.5 million of the well’s $51-million budget.
Meanwhile, the Africa-focused exploration and development company recently announced that it would return cash to its shareholders to the tune of $59 million, which has been determined as surplus funds to its operational requirements.
According to FAR, the company currently holds $127 million in cash and no debt. FAR’s recent completion of the sale of its equity stake in the Sangomar oil project offshore Senegal may also generate additional payments of up to $55 million, contingent on future oil prices and timing of first oil.
The company’s shares have been removed from the Australian Securities Exchange since last September, in which its most recent price for the equity was $0.8. FAR will bring up the cash return for a vote among shareholders, as well as is aiming to reduce the taxes paid on the return to Australian shareholders.