Sept. 5 (UPI) -- FAR Ltd., an Australian energy company with a focus offshore West Africa, reported a strong first half, adding it expected positive cash for the next year.
FAR Ltd. is working alongside partners tapping the emerging basins off the coast of West Africa. When discovered in 2014, the basin offshore Senegal in particular were counted among the largest in the world. By the estimates of the companies involved, Senegal could hold more than 1.5 billion barrels of oil of its coast
In a report for the first half of the year, FAR said it assets exceeded current liabilities.
"As at June 30, 2017, the group's current assets exceeded current liabilities by $68,389,923 and the group has cash and cash equivalents of $91,266,078," the company stated in its report for the six months ending June 30. "The group will continue to manage its evaluation and operating activities and put in place financing arrangements to ensure that it has sufficient cash reserves for the next twelve months."
Last month, FAR and British company Cairn Energy, the operator, said they discovered oil at the so-called Sirius Prospect in waters just to the north of the SNE oil field in Senegal. Cath Norman, the managing director at FAR, said it's the 11th successful well so far in the campaign.
The discoveries are important in an era where oil and gas companies are learning to work in a market where crude oil prices are about half what they were three years ago. Each well offshore Senegal was drilled ahead of schedule and under budget.
Cairn has a 40 percent working interest in three basins offshore Senegal, Australian energy company Woodside Petroleum holds 35 percent, FAR Ltd. has 15 percent and the national oil company of Senegal holds the rest. The joint venture partners are at odds over who would serve as the operator for some of the basins and FAR said the issue could take a year to settle.
Elsewhere, the company took on an 80 percent interest in emerging basins off the Gambian coast, where it plans to start drilling next year. The acquisition was in line with a plan to "significantly" expand its portfolio in the region.
"The group will continue to manage its evaluation and operating activities and put in place financing arrangements to ensure that it has sufficient cash reserves for the next 12 months," the company stated.