The agreement is still subject to the completion of formal documentation.

In a statement FAR said, “Under the agreement [the company] will pay for 15% of the cost of an 11,650 foot normally pressured test of the Upthrown Bol Mex section of the Prospect, a three way faulted closure, lying to the east of the Bayou Choctaw Northwest field, with estimated potential in the range of 3 to 5 million barrels of oil.”

“The cost of the well, a land based vertical hole planned for December 2004, is estimated at US$1.4 million with a further [US$500,000] for completion and pipeline connection. Provided the project is successful payout is estimated to occur within 10 months,” added the company.

FAR’s working interest in the acreage will be 15%. Other partners in the project include “Amadeus Energy Limited and associates of Gruy LLC”. Their objective in the project are the Nonion Struma with potential recoverable reserves of 12-15 BCF gas, Nodosaria between 13,500-14,500 feet with 100 BCF gas and 5 million barrels oil, and Deep Wilcox at 6,500-17,500 feet with 350-500 BCF gas and 9-13 million barrels oil.