Highlights

• FAR reported a maximum future contingent payment entitlement of USD 19.8 million.

• The company held USD 1.73 million in cash at the September quarter-end.

• FAR established a buyback for eligible shareholdings worth less than AUD 500.

• A tax ruling confirmed the June capital return contained no dividend component.

FAR (ASX:FAR) retains an oil-linked payment entitlement arising from the sale of its interest in the offshore Senegal project that includes the Sangomar field. Its exposure therefore depends on the contingent-payment formula rather than direct operation of the field. The September 2026 quarterly report, released on 23 October 2026, paired an update on that entitlement with cash expenditure, a completed capital return and a proposed buyback of small shareholdings.

Production Feeds into the Payment Formula

The quarter's field update recorded average daily production of 94,000 barrels on a 100% basis, with reliability of 99.2%. The production rate reflected natural field decline and reduced production-sharing contract net entitlement after recovery of pre-investment-decision costs.

FAR's contingent consideration has a maximum aggregate value of USD 55 million. The formula uses 45% of entitlement barrels associated with its former 13.67% project interest, multiplied by the excess of the specified crude oil price above USD 58 a barrel. The price used in that calculation is capped at USD 70 a barrel.

The entitlement ends on the earliest applicable trigger: 31 December 2027, three years after first oil sales excluding zero-production periods, or total payments reaching USD 55 million.

Provisional Receipts Still Require Reconciliation

In May 2026, the company received a provisional USD 23.7 million payment for calendar 2025. That amount remained subject to reconciliation of underlying oil entitlement volumes with project participants and the relevant Senegalese ministry.

Either party would settle any difference between the final and provisional calculation. The maximum future contingent payment available to FAR was USD 19.8 million at the reporting date.

For the September quarter, the report cited an average Dated Brent price of USD 97 a barrel. The formula's upper price limit still governs how prices translate into contingent consideration; the quarterly oil price is not an uncapped payment input.

Small Holdings Enter the Buyback Process

The company established an off-market facility covering unmarketable parcels valued below AUD 500 at the 21 September 2026 record date. The buyback price was AUD 0.2979 per share, based on the relevant five-day volume-weighted average.

Holdings of 1,678 shares or fewer qualified. Eligible shareholders could retain their shares by returning the retention form or increasing their holding above the threshold by 5 pm Melbourne time on 6 November 2026.

Repurchased shares would be cancelled. The outcome was expected on 13 November, with proceeds scheduled for around 20 November. No shares had been bought back when the quarterly report was released.

Cash and Capital Returns Frame the Position

Quarter-end cash stood at USD 1.73 million, with September-quarter expenditure of approximately USD 0.3 million, mainly corporate and administration costs net of interest income. The buyback's implementation cost was expected to remain below AUD 400,000.

Separately, a July tax ruling confirmed that the AUD 0.35-per-share capital return paid on 11 June 2026 would not be treated as a dividend. Future cash receipts remained subject to the contingent-payment terms and reconciliation process.