(Ecofin Agency) - FAR Ltd, an Australian company active in Eastern and Western Africa, announced on 23 October its intention to raise a total of USD 40 million in equity for its capital expenditure in the Senegal offshore exploration.

This is about raising a gross amount of USD 25 million from professional and institutional investors and USD 15 million from eligible shareholders, the oil company listed on ASX specified.

The net amounts raised will be used to finance, mainly, the capital expenditure linked to the vast discovery of oil in offshore Senegal, including the drilling of two exploration wells on the SNE deposit, and the drilling of one exploration in the Bellatrix prospect on the continental plateau.

In Senegal, Far Ltd is operating in a joint venture with several partners, including operator Cairn Energy Plc, on the offshore blocks Sangomar Deep, Sangomar Offshore and Rufisque, covering a total of 7,490 km2.

Far Ltd holds, 15% shares in the three blocks, against 40% for Cairn Energy Plc, 35% for ConocoPhillips and 10% for national company Petrosen.