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.

Energy company FAR Limited (ASX:FAR) entered the September 2026 quarter with its exposure to Senegal’s Sangomar oil field centred on contingent payment rights rather than a producing ownership stake. Alongside monitoring the field’s performance, FAR moved ahead with an unmarketable-parcel share buy-back and clarified the tax treatment of its earlier capital return.

Oil Output and the Payment Formula

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 continues to be conditional on 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.

A Smaller Share Register in Focus

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 is set to 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 is set to be bought back at A$0.2979 per share without brokerage unless holders elect to retain them by 6 November 2026. The business indicated the initiative should reduce the cost of maintaining approximately 1,500 small holdings, with total implementation costs expected to be less than A$400,000.

Cash and Corporate Spending

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

Payments to related parties over the three-month period totalled US$47,000, representing remuneration for non-executive directors.

What Still Determines Returns