PERTH (miningweekly.com) – Africa-focused oil and gas developer FAR on Thursday announced plans to raise up to A$176-million to fund the development to first oil at its Sangomar oil field, offshore Senegal.
The company will raise an initial A$146-million through a conditional share placement, priced at 4.25c each, with the share placement subject to shareholder approval at an annual general meeting on January 16.
The new shares being placed represent around 35.4% of the enlarged share capital of FAR, which will have more than 9.7-billion ordinary shares on issue.
In addition to the share placement, FAR will also undertake a share purchase plan (SPP) to raise a further A$30-million.
Funds raised will go towards development capital to first oil at Sangomar, along with the company’s existing cash reserves and a $350-million senior secured debt facility and a junior debt facility of up to $150-million.
The funds will also strengthen FAR’s balance sheet and support associated working capital, the company said.
The development and exploitation plan for the Sangomar oilfield envisages a multi-phase development of oil and gas and details how the field will be developed in a series of phases with plans for around 500-million barrels of oil to be developed with a plateau production of 100 000 barrels of oil a day with first oil expected in 2022.
FAR holds a 15% interest in the project area, with oil and gas major Woodside acting as the operator.