(Ecofin Agency) - FAR Limited has debunk claims that it does not have the means to exercise its option to farm-in into the Djiffere block, offshore Senegal. According to the company, there has been reports claiming that it could not raise money to exercise its option to farm into the Djiffere block offshore Senegal.

“There has been some concern raised about reports that FAR could not exercise its option to farm into the Djiffere block offshore Senegal because FAR could not complete the transaction. The statements made in relation to this issue were false and misleading,” Cath Norman (photo), FAR Managing Director, said.

In September 2015, FAR Ltd entered into a farm-in option agreement with a subsidiary of Trace Atlantic Oil Ltd for the Djiffere block which is adjacent to its Rufisque, Sangomar and Sangomar Deep blocks that contain the SNE-1 and FAN-1 oil discoveries. Under the agreement, which is subject to Government approvals, FAR has the option to earn a 75% working interest in the Djiffere block by drilling an exploration well before July 31, 2018.

Norman added that the company has met its commitment under the Djiffere block option agreement which was for it to secure a 150 square miles of 3D seismic data. This data was acquired in 2015. Initial processed products from the 3D survey on the block have been received with final products expected by the end of 2016 and FAR expects to be prepared to make a final decision as regards its option after that, RigZone news reports.

 “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 added.

Block Djiffere Offshore licence area covers 4,459 km² in shallow waters of the Senegal (Mauritania-Senegal-Gambia-Bissau-Conakry) Basin.

Anita Fatunji