Highlights

  • Sangomar field averaged 94 Mbbl/d in the September quarter, according to Woodside.
  • Unmarketable parcel buy-back launched at A$0.2979 per share.
  • ATO Class Ruling confirms the 35 cent capital return is not a dividend.
  • Cash of US$1.73 million at quarter end.

FAR Limited (ASX:FAR) has released its quarterly activities report for the period ended 30 September 2026. The company’s main remaining asset is its right to contingent payments from Woodside Energy linked to production from the Sangomar field offshore Senegal, which FAR received as part of the sale of its interest in the RSSD Project. During the quarter, FAR also launched a buy-back for small shareholdings and received tax clarity on its recent capital return.

Sangomar Production and Contingent Payments

In its third quarter report released on 21 October 2026, Woodside said Sangomar achieved an average production rate of 94 Mbbl/d on a 100% basis, with reliability of 99.2%. The rate reflects natural field decline and reduced production sharing contract entitlement after Woodside recovered its pre-FID costs. The average Dated Brent price for the quarter was US$97 per barrel.

FAR’s contingent payment is based on 45% of entitlement barrels linked to its former 13.67% interest, multiplied by the excess of the oil price over US$58 per barrel, capped at US$70 per barrel. In May 2026, FAR received a provisional 2025 payment of US$23.7 million, which remains subject to reconciliation. The maximum future contingent payment is US$19.8 million, and the arrangement ends at the earliest of 31 December 2027, three years from first oil sales, or when total payments reach US$55 million.

Capital Management Initiatives

On 15 July 2026, the Australian Taxation Office published Class Ruling CR 2026/40, confirming that no part of the 35 cents per share capital return paid on 11 June 2026 will be treated as a dividend for Australian income tax purposes. The ruling also addresses capital gains treatment for qualifying shareholders.

On 22 September 2026, FAR announced an off-market buy-back for shareholders holding unmarketable parcels worth less than A$500, which equates to 1,678 shares or fewer. Eligible shares will be bought back at A$0.2979 per share without brokerage unless holders elect to retain them by 6 November 2026. The company said the initiative should reduce the cost of maintaining about 1,500 small holdings, with total implementation costs expected to be less than A$400,000.

Cash Position

FAR held US$1.73 million in cash at the end of the quarter. Expenditure for the quarter totalled about US$0.3 million, mainly corporate and administration costs net of interest income.

Payments to related parties during the quarter totalled US$47,000, representing remuneration for non-executive directors.

Key Takeaways

FAR is now largely a vehicle for its Sangomar contingent payment rights, with up to US$19.8 million in potential future payments depending on production and oil prices. Its cash balance is modest, but operating costs are low. Completion of the unmarketable parcel buy-back in November and the reconciliation of contingent payments are the key items to follow.