‘Offshore Gambian blocks could hold 1.2 bln barrels of oil’

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FAR Ltd, an Australian company involved in prospecting Gambia’s offshore oil wells said on Thursday that its two offshore blocks could potentially hold 1.2 billion barrels of oil.

FAR operates and owns 50% of the two offshore licences. The company said it was entitled to about 621 million barrels and was preparing to start drilling next year.

However, further drilling would be needed to estimate how much could be produced by the Australian explorer.

The company is re-examining data for the A2 block to help it identify which prospect to drill in 2020, Managing Director Cath Norman said.

Under the licence agreement with the Gambian government, FAR agreed to drill one well in the first two years in either block.

FAR’s assessment came weeks after the Melbourne-based company bought an extra 10% of the two blocks, raising its ownership to 50%. The deal gave PC Gambia, a unit of Malaysian state-owned energy giant Petronas, the remaining half.

Earlier in the session, company shares surged as much as 9.4%, but reversed course as oil prices slipped. Stock was down 0.9% at A$0.0525, as of 0440 GMT.

Source: Reuters news agency

2019-10-24T14:15:18+00:00

One Comment

  1. Baba lamin Ceesay October 25, 2019 at 10:46 am - Reply

    So sad 50% shares! This is what happens when lazy ignorant greedy selfish individuals in public office. Gambia government wake up. 50% is far too much and above all only ministers and their families will benefit not poor gambian citizens!
    This is not right and any company wishing to work with corrupted government, you are playing parts taking advantage on poorest nations on earth.

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