FAR Ltd., Melbourne, executed a sale and purchase agreement with Woodside Energy Ltd. for FAR’s 15% interest in Rufisque, Sangomar and Sangomar Deep (RSSD) holdings (including Sangomar oil field) offshore Senegal.
The agreement is on the same terms and conditions as a previously announced sale to ONGC Videsh Vankorneft of India in November 2020. Woodside pre-empted the sale of FAR’s Senegal interests to ONGC for $45 million in December (OGJ Online, Dec. 4, 2020).
FAR then received a $210 million (Aus.) all-cash takeover proposal from private investment fund Remus Horizons PCC Ltd.
That proposal is still current, but FAR issued a statement at the time cautioning that it is not a legally binding offer and that the proposal terms are still uncertain. That is still the case.
FAR said that Remus, which is a fund regulated by the Guernsey Financial Services Commission in the Channel Islands, is willing to discuss the possibility of making a loan of up to $50 million to FAR from the date of a binding offer so that FAR can meet its funding obligations towards its interest in the RSSD project.
One of Remus’ conditions for its proposal called for the re-scheduling of the FAR shareholder meeting called to consider the RSSD sale to Woodside.
That meeting is to be held Feb. 18, 2021, and will consider authorizing the sale and purchase agreement with Woodside. In the meantime, FAR has undertaken to provide its shareholders with further information to consider the Woodside sale in the context of the Remus proposal with the proviso that Remus elevates its offer to a binding proposal prior to Feb. 18.
