The oil was found at the base of the 3899m-deep well, and FAR says it believes the shows are not commercially significant, although they do provide some support for the potential for other Aptian carbonate prospects to have trapped hydrocarbons, offshore Senegal.

 

FAR admits it has only made a preliminary interpretation of the well data provided by wireline logging and sampling in the Aptian carbonate section of VR-1, and as work is ongoing to characterise the interval, and that could change.

 

It is a rare disappointing outcome for the company, which has drilled eight successful wells offshore Senegal to date, although the FAN-1 discovery poses several unresolved questions and the BEL-1 exploration target was also not found as expected.

 

VR-1 successfully encountered almost 100m of oil, with greater than expected net pay in the SNE field, including some of the best lower reservoir properties in the Albian formations.

 

The well is still 10 days ahead of schedule, and continues the outstanding performance from the Stena DrillMAX drillship, which has been delivering wells ahead of budget.

 

The well will now be plugged and abandoned.

 

FAR managing director Cath Norman said notwithstanding the exploration outcome it should be considered an overall success given the appraisal component was met, and exceeded in some cases.

 

"We see evidence at this stage of hydrocarbons in the secondary target in the limestones but at this stage, FAR's interpretation is that these are more than likely not of economic significance although interpretation of the wireline logs and samples taken has not been completed," she said.

 

"As previously reported, the limestone target was high risk with FAR carrying a 10% chance of success and we look forward now to completing the SNE-6 well and the connectivity measurements across the SNE field as planned."

 

Buoyed by its recent successes FAR has also been able to raise $80 million at eight cents per share in a fully-underwritten placement by Credit Suisse and RBC Capital Markets. 

 

The 8cps raising was at less than a 5% discount, and goes some way to assuaging doubts that the company won't be able to meet its growing commitments off West Africa, where it has committed to a significant number of offshore wells for a junior in recent weeks.

 

The cash will meet all expected costs in Senegal and The Gambia, although a well due in Guinea-Bissau before the end of 2020 was not mentioned.

 

The $80 million raising will take place in two tranches, the first of $54 million and the second, for $26 million, requiring shareholder support in May.  

 

FAR has elected to remain in its trading halt.