FAR Limited (ASX:FAR) Reports Strong Quarterly Activity
Highlights of Production Success
FAR Limited (ASX: FAR) reports significant operational achievements from the Sangomar field offshore Senegal, with production reaching 95 thousand barrels of oil equivalent (Mboe) per day in the December quarter. Woodside Energy’s Fourth Quarter Report confirmed this production success alongside the completion of key commissioning activities for the floating production storage and offloading (FPSO) unit, achieving 94% operational reliability for the quarter.
Financial Overview
FAR closed the quarter with US$1.7 million in cash, following an expenditure of US$0.15 million primarily for corporate and administration costs. The quarter’s operations included a net cash outflow from operating activities of US$114,000. The company also reported an unrealised foreign currency loss of US$0.15 million.
Contingent Payment Potential
FAR anticipates receiving its first annual contingent payment from Woodside Energy related to the Sangomar production, with a maximum value of US$55 million. This payment is based on the company’s share of oil production from its previously held interest in the RSSD Project, further emphasising the potential for monetisation of this asset.
Executive Comments
Independent Chairman Patrick O’Connor commented, “The Company looks forward to receiving the first annual payment of the Contingent Payment due from Woodside Energy. We remain open to the potential monetisation of this contingent asset.”
Conclusion
FAR Limited remains committed to optimising its operations and exploring monetisation opportunities as it progresses into 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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