The approval extinguishes a provision of the Convertible Notes issued by FAR for an earlier maturity date in the event the approval had not been obtained. The maturity date remains January 31, 2009.
Senegal Exploration Opportunity
Deep water play with giant hydrocarbon potential in the Senegalese portion of the productive Mauritania-Senegal-Guinea Bissau Basin. Large closures identified at the Aptian carbonate and Cenomanian sandstone levels, along with numerous Senonian stratigraphic leads with significant upside potential exceeding 1 billion barrels recoverable within the license.
The Sangomar-Rufisque offshore license covers an area of 14981 sq km over the shelf, slope, and basin floor.
Contract terms are among the best in the world, and were recently improved as a result of the government reducing the tax rate to 25%
FAR will partner Senegal Hunt Oil Company (SHOC) in evaluating this opportunity, by contributing toward a proposed 2000 sq km 3D seismic acquisition program commencing early fourth quarter 2006.
The proposed 3D survey is designed to validate several potentially significant prospects and a number of leads identified by Hunt based on existing 2D seismic data in addition to identifying additional prospects.
The northwest African margin is relatively under-explored, but hosts numerous recent, sizeable, and intriguing discoveries including the Woodside operated Chinguetti and Tioff discoveries in adjacent Mauritania.
Following Ministerial approval interests in the Senegal project will be Senegal Hunt Oil Company (Operator) 60%; First Australian Resources Limited 30%; and Petrosen (State Oil Company) 10%
Commenting on the announcement, FAR's executive Chairman Michael Evans said
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