The Government of The Republic of The Gambia has approved the assignment of an 80% operating interest in two West African offshore blocks A2 and A5. FAR said it will pay $5.18mm cash to Erin – but additionally, fund Erin up to $8mn through an exploration well expected to be drilled late 2018.
FAR said Gambia blocks A2 and A5 are adjacent to, and on trend with, the world class SNE oil field discovery offshore Senegal – including the Cairn-operated SNE oilfield which FAR, with a 15% interest in SNE, says has prospective resources (at 100%) in excess of 1 billion barrels of oil. They have also included some gas.
The Gambia in accordance with the Blocks A2 and A5 licence terms. ERIN will retain a 20% working interest in Blocks A2 and A5. The well, to be funded by FAR, is to be drilled before 31 December 2018 or such later date if the current licence periods are extended.
FAR Managing Director Cath Norman said: “Our discoveries immediately to the North in offshore Senegal provide significant encouragement for
the future discovery of oil and gas in Blocks A2 and A5 in The Gambia.” Furthermore, she emphasised the fact that FAR is committed to building a strong strategic partnership with the Government of the Republic of The Gambia and looks forward to working with the Government and ERIN Energy.