Australian junior Far Ltd has increased its operated interest in blocks A2 and A5 offshore Gambia by additional 10%.
Far confirmed Tuesday its stake in the blocks had risen to 50% after the Gambian government issued new licences to the joint venture, with Malaysian state-run giant Petronas holding the remaining 50% equity.
The key terms under the new licences cover an initial three-year exploration period, with two two-year optional extension periods.
The joint ventures commitments under the new licences include the drilling of one well in either block within the first two years, as well as the acquisition of 450 square kilometres of 3D seismic during the initial three-year exploration term.
Far said it planned to carry out a 3D seismic survey later this year to delineate some of the identified prospects on the blocks, with a well expected to be drilled next year.
Far noted that it had carried out extensive geotechnical studies on last year’s unsuccessful Samo-1 well which it said had led to the identification of additional target intervals to those mapped prior to drilling, with work currently being carried out to map and quantify the resulting prospects.
“In addition to Far acquiring the additional 10% equity in these blocks, the new Licences reset the exploration periods and provide more time and options to fully explore this acreage,” Far’s management said in Tuesday’s statement.
“Far is very encouraged by the high prospectivity in these Gambian blocks and will immediately commence plans for seismic acquisition and drilling in 2020.”
Far and Petronas will also pay signature bonuses of US$4.5 million for the two licences which are effective from Tuesday.
Blocks A2 and A5 cover a combined area of 2682 square kilometres and lie on trend with the SNE oilfield off Senegal where Far also holds an interest.
