FAR Limited is an oil and gas exploration company primarily focused on the exploration and appraisal of new business initiatives within the oil & gas and energy transition sectors.
The company is based in Melbourne, Australia, and aims to explore and evaluate opportunities, while also managing its expenditures wisely to provide better returns to its shareholders.
Business Segments
The primary operating segments identified by the company include its exploration activities in The Gambia and Sen...
FAR Limited is an oil and gas exploration company primarily focused on the exploration and appraisal of new business initiatives within the oil & gas and energy transition sectors.
The company is based in Melbourne, Australia, and aims to explore and evaluate opportunities, while also managing its expenditures wisely to provide better returns to its shareholders.
Business Segments
The primary operating segments identified by the company include its exploration activities in The Gambia and Senegal, alongside corporate services. The Gambia has seen most of the company's exploration activities, though these efforts have been limited in recent years. Reports indicate that the company has focused significantly on corporate administration while exploring potential partnerships to engage in developmental activities without heavily impacting its capital.
The assets and liabilities of the segments have been accounted for and reviewed periodically to ensure accurate resource allocation and assessment of corporate performance. Recent financial reports indicate the total segment assets at over three million USD, with the bulk residing within the corporate segment. The liabilities across the respective segments have also been tracked, revealing a significant difference based on company activities in exploration and development.
Business Strategy
The company's business strategy is primarily dictated by its objective to engage in sustainable oil and gas exploration and to appraise new business initiatives that could yield better returns than its recent share buy-back schemes. The board's focus for 2023 included leveraging valuable exploration data from The Gambia without significantly drawing from the company's capital reserves. Furthermore, efforts were made to market the exploration interests in The Gambia to establish a joint venture but faced challenges in securing agreements with third-party entities.
The company has also embarked on more strategic evaluations regarding its assets and considered the monetization of certain payments related to future projects, specifically the Woodside Contingent Payment linked to the Sango mar field's anticipated first oil production expected in mid-2024.
Overall, the strategic emphasis lies in diligent resource management, partnerships that enhance prospects in the oil and gas sector, and navigating through current economic uncertainties while maximizing shareholder returns effectively.
Products and Services
The company primarily offers exploration services in oil and gas within its segments, focusing on activities that intimately pertain to exploration interests. The company does not actively produce oil or gas, concentrating solely on exploration, which includes geological surveys, analysis, and partnership development for potential operations.
The resulting services encompass screening opportunities and assessing exploration licenses like Block A2 and A5 in The Gambia. The company is also engaged in data management and evaluation related to its exploration interests. While it maintains a focus on oil and gas, the emphasis on environmentally sustainable practices is integral to its operations, ensuring compliance with evolving regulatory requirements.
Geographical Markets Served
The geographical markets served predominantly include The Gambia and Senegal. Within these regions, exploration interests are subject to regulatory compliance and partnerships with local governments. The recent strategic move involves the company's notice of surrender of Blocks A2 and A5 to the Government of The Gambia as part of its evolving exploration strategy.
Customers
The company's customer dynamics largely revolve around government bodies and potential joint venture partners, specifically in the regions where it explores. Although the number of direct customers remains low given the company’s current lack of production, it regularly engages with various stakeholders that include multi-national oil companies, governmental institutions, and consultancy firms interested in exploration agreements.
Modes of Sales and Marketing, Distribution Channels
The company's marketing strategy predominantly revolves around engaging with potential partners and stakeholders in key geographical markets. With a limited operational footprint, sales and marketing efforts largely consist of networking within industry circles, pursuing joint ventures, and presenting potential exploration opportunities to external parties.
The primary distribution channel comprises direct negotiations with potential partners for exploration collaborations and joint ventures. Marketing efforts are supplemented through digital platforms while maintaining transparency in communicating exploration opportunities to prospective partners and stakeholders.
History
The was incorporated in 1984. The company was formerly known as First Australian Resources NL and changed its name to FAR Limited in 2010.
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