MELBOURNE, Australia – FAR Ltd (ASX:FAR) has advised that Cairn Energy plc, operator of the Senegal joint venture, had modified the Senegal drilling program to incorporate maintenance that is expected to be completed soon to allow drilling operations on FAN-1 to resume.
Drilling to date on FAN-1 has reached a depth of 3,000 m (9,843 ft) and is above the first reservoir objective. The plan remains to drill to 5,300 m (17,388 ft) TVD. The second Senegal well, SNE-1, is currently suspended and can be re-entered when required. The well has been drilled to a depth of 1,907 m (6,257 ft) of TVD, and is planned to reach TVD of 3,292 m (10,801 ft).
Based on this amended drilling program, FAR anticipates an increase to the budgeted Senegal offshore drilling campaign well costs. Currently FAR estimates that it could be required to contribute A$24.2 million ($22.5 million) to fund its share of costs. To date, FAR has received cash payments totaling A$22.2 million ($20.2 million) from its farm-out deals with Cairn and ConocoPhillips.
Drilling began on April 17 for the exploration well, FAN-1, offshore Senegal, in which FAR holds a 15% working interest (WI), Cairn has 40% WI,ConocoPhillips has 35% WI, and Petrosen has 10% (fully carried).