Key Highlights

  • FAR reported closing cash of US$1.73 million (unaudited) for the quarter ended 30 September 2026 and no financing facilities in place or drawn.
  • FAR is entitled to a contingent payment of up to US$55 million linked to oil sold from the Sangomar field, ending no later than 31 December 2027.
  • An unmarketable parcel buy-back is open at A$0.2979 a share until 5.00pm Melbourne time on 6 November 2026.

FAR Limited (ASX:FAR) has reported for the quarter ended 30 September 2026, a period in which the company had no operating revenue. It has a contingent payment linked to oil sold from the Sangomar field offshore Senegal. The company reported closing cash of US$1.73 million, unaudited, and said it has no financing facilities in place or drawn.

FAR sold its interest in the RSSD Project to Woodside and, as part of the consideration, is entitled to a contingent payment of up to US$55 million. The payment is calculated as 45 per cent of entitlement barrels from FAR's previously held 13.67 per cent interest in the Sangomar exploitation area, multiplied by the amount by which the Dated Brent price exceeds US$58 a barrel, with the price capped at US$70. It ends at the earliest of 31 December 2027, three years after first oil is sold (excluding periods of zero production), or when total payments reach US$55 million.

FAR cited Woodside's third-quarter report, released on 21 October 2026. Sangomar averaged 94,000 barrels a day on a 100 per cent basis, or 73,000 barrels a day for Woodside's share, with reliability of 99.2 per cent. Woodside's share of sales was 6,932 thousand barrels for the quarter and 20,619 thousand barrels for the nine months, while average Dated Brent was US$97 a barrel for the quarter. FAR noted that lower production was due to natural field decline and a reduced net entitlement under the production sharing contract after Woodside recovered all of its pre-final-investment-decision costs.

A provisional payment of US$23.7 million for calendar 2025, based on 28.4 million barrels of 2025 sales, was received in May 2026. It remains subject to reconciliation with joint venture participants and the Senegalese energy ministry, with any difference settled between Woodside and FAR. FAR says the maximum remaining payment is US$19.8 million.

Capital return and tax ruling

FAR paid a Capital return of 35 cents a share on 11 June 2026 after Shareholder approval at its 28 May 2026 annual general meeting. The Australian Taxation Office issued Class Ruling CR 2026/40 on 15 July 2026, which the company says confirms that no part of the return is assessable as a dividend. Qualifying shareholders may treat any Capital Gain as a discount capital gain where requirements are met, and certain foreign resident holders may disregard any resulting gain or loss.

Unmarketable parcel buy-back

The company is running a buy-back for holdings worth less than A$500, set at 1,678 shares or fewer. The price is A$0.2979 a share, equal to the five-day Volume weighted average price at the 21 September 2026 record date, with no brokerage or Transaction Costs for participants. About 1,500 holdings are affected and the total cost is expected to be under A$400,000. Shareholders can keep their shares by returning a retention form or lifting their holding above the threshold by 5.00pm Melbourne time on 6 November 2026. No shares had been bought back at the report date.

Cash position and costs

Net operating cash outflow was US$262,000 for the quarter and US$426,000 for the nine months. Staff costs were US$46,000 and administration and corporate costs US$237,000 for the quarter, with US$21,000 of interest received. Over the nine months, the company recorded US$23.7 million of consideration received and US$22.8 million returned to shareholders.

On the quarterly outflow, FAR estimates a funding runway of 6.61 quarters.

Next steps

The buy-back outcome is due to be announced to the ASX on or about 13 November 2026, with proceeds paid on or about 20 November 2026. FAR Limited (ASX:FAR) said further Woodside payments would be assessed against Dated Brent prices and entitlement barrels under the contingent payment terms, with the arrangement ending no later than 31 December 2027.