FAR told the market on Friday that Schwing-2 was being drilled as a deviated well, initially to a total depth of 14,500 feet in the Nodosaria Formation, at an expected cost of $US6 million.

If it fails to make a commercial discovery to this depth, the well will be deepened to test the Wilcox Formation.

FAR will have a 5% working interest in the well to a depth of 14,500 feet, after which it will participate with 17.77% in any further drilling.

“A potential bail out zone has been mapped at Bolmex horizon at approximately 11,800 feet,” the company said.

“This zone is considered lower risk and may assist in defraying well costs.”