FAR will hold a 12.5% stake in the Galveston Bay prospect, with all other working interests to be held by North American entities. The operator is Houston-based Genesis Production.

A Frio Sand Prospect identified and defined by existing 3D data lies adjacent to and across a saddle from the existing Smith Point Field.

The Smith Point Field has produced a total of 6 million barrels of oil and 42 billion cubic feet of gas from multiple wells and multiple normally-pressured Frio Sands, according to FAR.

FAR executive chairman Michael Evans said the joint venture expected near-term production, as the Frio Sand Prospect was relatively low risk.

“This offshore Gulf Coast project represents a ground floor opportunity with multiple drilling objectives and potential for near-term production,” Evans said.

“This is the first time FAR has bid directly on offshore acreage and serves to highlight its maturing status.”

With three drilling locations identified by seismic mapping, FAR said discussions are currently underway with a nearby rig provider to drill the first location between this month and July.