FAR Limited is raising approximately $40 million through an Equity Raising.

The equity raising comprises of a placement of fully paid ordinary shares to raise approximately $25 million and a 1 for 17 underwritten pro-rata non-abandonable entitlement offer of fully paid ordinary shares to existing eligible shareholders to raise approximately $15 million.

The Equity Raising is a joint lead managed by the Royal Bank of Canada (trading as RBC Capital Markets) and Bell Potter Securities Limited (Joint Lead Managers).  The Joint Lead Managers have agreed to underwrite the Entitlement Offer. Funds raised from the Equity Raising will be primarily used to support FAR’s expenditure on its large Senegalese oil find which includes 2 appraisal wells on its SNE discovery in Senegal and a shelf exploration well also overlying the SNE field.

 “This new funding will enable FAR to aggressively pursue the appraisal of our world class Senegal oil discovery at SNE and drill a new shelf exploration prospect at Bellatrix aimed at building the resource base within tie back range to a potential future hub development at SNE. The support of our existing shareholders is very welcome and the significance and value of FAR’s discoveries at SNE and FAN has also been recognized by our new shareholders. Drilling of the wells is scheduled to commence at the end of the month and FAR now looks forward to bringing results of the drilling to our shareholders which we believe have potential to create significant value,” Cath Norman (photo), Managing Director of FAR, told Energy-Pedia.