FAR Limited (ASX:FAR) Outlines Sangomar Payment Link and Small-Holding Share Repurchase

Sonal Goyal

23 October 2026 07:39 PM AEDT

FAR Limited (ASX:FAR) Outlines Sangomar Payment Link and Small-Holding Share Repurchase

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Key Highlights

Woodside reported Sangomar production of 94 Mbbl/d on a 100% basis, or 73 Mbbl/d Woodside share, with 99.2% reliability.
An off-market facility will repurchase parcels worth under A$500 at A$0.2979 per share unless holders elect to retain them.
Class Ruling CR 2026/40 confirmed no part of the 35 cents per share capital return paid on 11 June is a dividend.
Cash at quarter end was US$1.73 million (unaudited), after quarterly expenditure of US$0.3 million, mainly corporate costs.

FAR Limited (ASX:FAR) released its September 2026 quarterly activities report on 23 October 2026, pointing to Woodside Energy's latest Sangomar production figures, a new share repurchase facility for small shareholdings and a confirmed tax treatment for its capital return. Cash at the end of the quarter was US$1.73 million, which the company marked as unaudited.

Sangomar Output and the Contingent Payment

As part of the consideration for selling its RSSD Project interest in Senegal to Woodside, FAR received rights to a Contingent Payment with a maximum value of US$55 million. The payment is calculated as 45% of entitlement barrels, relating to FAR's previously held 13.67% of the project, multiplied by the excess of the crude oil price over US$58 per barrel, capped at US$70 per barrel. It ends on the earliest of 31 December 2027, three years from first oil sales, or US$55 million being reached.

Woodside's Third Quarter Report, released on 21 October 2026, recorded Sangomar average daily production of 94 Mbbl/d on a 100% basis and 73 Mbbl/d for Woodside's share, with reliability of 99.2%. Woodside said the rate reflects natural field decline and reduced production sharing contract net entitlement. The average Dated Brent price for the quarter was US$97 per barrel.

In May 2026 FAR received a provisional calendar year 2025 payment of US$23.7 million. It remains subject to reconciliation of oil entitlement volumes, and any difference will be settled by Woodside or FAR. The maximum future payment to FAR is US$19.8 million.

Why This Could Matter

The company said the unmarketable parcel facility is expected to give affected shareholders a cost-effective way to dispose of their shares and to reduce the administrative costs of maintaining about 1,500 small holdings. The Class Ruling also confirms the tax treatment of the capital return.

The Share Repurchase Facility

Announced on 22 September 2026, the off-market facility applies to holders of parcels valued at less than A$500 at 7.00pm Melbourne time on 21 September. A holding of 1,678 shares or fewer qualifies. Eligible shares will be repurchased at A$0.2979 without brokerage unless the holder returns a Share Retention Form or lifts the holding above an unmarketable parcel by 5.00pm Melbourne time on 6 November 2026. The outcome is expected to be announced on 13 November and proceeds paid on or about 20 November. Total cost is expected to be below A$400,000.

Where Things Stand

FAR spent US$0.3 million in the quarter, mainly on corporate and administration costs net of interest income. Related-party payments of US$47,000 were remuneration for Non-Executive Directors.

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