FAR Ltd will boost cash balance after reaching Kenya L6 settlement
Friday, 26 June 2020 ()
FAR Ltd (ASX:FAR) (OTCMKTS:FARYF) will receive a boost to its cash balance after reaching settlement with Pancontinental Oil & Gas NL (ASX:PCL) in regard to the Kenya Block L6 offshore Kenya. In a statement, Pancontinental and its subsidiary Afrex Ltd said agreement had been reached to settle this long-standing matter with FAR. The amount which was the subject of the 2020 Default Notices from FAR Ltd totals US $567,145.80 (~A$827,950). Pancontinental will make a payment of US$150,000 (~A$218,978) into a nominated account of Operator Flow Energy Pty Ltd, a subsidiary of FAR, as full and final settlement of any and all outstanding cash calls relating to Kenya Block L6. The parties will then execute the Surrender and Termination Agreement to start the process of exiting from Kenya L6.