FAR LIMITED (ASX: FAR), an entity of the energy sector aimed towards exploration for Oil and Gas, recently laid down its quarterly update for the quarter ending March 2019. Earlier this month, the company had published its investor presentation report as well.
Discussed below are the major highlights of the quarterly update:
- Net cash (used in) operating activities stands at an outflow of A$4,396k.
- The net cash from investing activities depicts an outflow of A$2,540k.
- Financing activities have an outflow of A$122k.
- The cash and cash equivalents are valued at A$20,401k.
- The total estimation of cash flow for the quarter is A$10,300k.
- In February, the contract for the floating production storage and offloading facility was granted to MODEC International Inc for the successful conversion of an existing tanker.
- Post this quarter, a high-definition 3D marine seismic survey contract was awarded to Shearwater GeoServices Ltd to improvise on reservoir definition supporting the SNE area.
- Davros Extension multiclient 3D seismic survey was completed on North West Shelf block WA458-P.
- The cash and term deposits at the end of quarter stand at AU$20.1M without any debt.
- During this quarter close, FAR stated that tasks had been completed on the expansion and renovation of the labour ward at the Soma Regional Hospital in Gambia (officially opened on 22 February 2019) along with a partnership with UK Jarra Association, which is a charitable organisation. In the hospital, FAR constructed ward extensions, repairs and renovation of existing delivery wards.
- FAR’s Annual General Meeting (AGM) will be held on May 30th 2019, in Melbourne.
The management commented that the quarter has been intensive with regard to its Gambia and Senegal projects. The next step is to reach into terms with their JV partner, PETRONAS, on the work program going forward and to move into the next licence period. This will require the drilling of an exploration well on either block in the two years commencing 1 July 2019. FAR would be the operator of these blocks and continue its efficient and optimistic work relationship with both PETRONAS and the Government of The Gambia. FAR aims to seek success about the hydrocarbon prospect of blocks A2 and A5 in these projects.
Activity in the wider MSGBC Basin has been pacing up and the total operated well in the deepwater block to the west of the FAR Senegal is planned to be dug up in the second half of the year. CNOOC will be operating with an estimated 2 exploration wells in the AGC Profond in early 2020 and FAR is aiming to save the option to drill in A2/A5 in early 2020 as well as participate in a Svenska operated well offshore Guinea-Bissau simultaneously.
Besides the quarterly update, FAR today, 30 April 2019, also announced that the securities of the company would be on a trading halt until Friday, 3 May 2019 or when the announcement is released to the market. The halt is in relation to a proposed raise in equity and would be further announced by the company on its discretion.
The shares of FAR closed the day’s trade at $0.056 on ASX (as on 30 April 2019) down by 1.754% as compared to its previous day’s close price.
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