• FAR has right to receive up to US$55 million contingent payment from Woodside Energy
• Contingent payment based on oil production and price from Sangomar Project in Senegal
• FAR estimates 2024 contingent payment to be approximately US$11.5 million

FAR Limited (ASX: FAR) has provided an update on the contingent payment it is entitled to receive from Woodside Energy with respect to the sale of oil relating to FAR's previously held 13.67% interest in the Sangomar Project in Senegal. Under the terms of the sale and purchase agreement entered into in 2021, FAR has a right to receive a contingent payment of up to US$55 million, payable in annual tranches for three years from the first oil sold, which occurred in mid-2024. Woodside Energy has announced that its entitlement in the Sangomar Project in Senegal was production of 13.3 MMbbl of crude oil in calendar year 2024, with 12.9 MMbbl of sales. Based on this, FAR estimates that the contingent payment which is payable to it with respect to the 2024 calendar year is approximately US$11.5 million. FAR intends to record this amount as a current asset in its financial statements for the year ended 31 December 2024. However, Woodside Energy has advised FAR that the precise amount of the 2024 contingent payment is subject to the agreement to the reconciliation of underlying oil entitlement volumes with each joint venture participant and the Senegalese Ministry of Energy, Petroleum and Mines, and that this process is ongoing. Accordingly, the precise amount and payment timing of the 2024 contingent payment is subject to completion of this reconciliation. FAR is liaising with Woodside Energy in this regard and will update the market once this has occurred.