Australian oil company FAR Limited announced in a statement issued Wednesday that it is very likely that oil can be extracted at a commercially-viable cost in the sea off Guinea Bissau.

“Discoveries made in test well off the coast of Guinea Bissau have shown the likelihood of success of exploration of a well there,” which is scheduled to be drilled at the end of 2014, “is relatively high.”

Given that it is an area of shallow water “the costs of exploration and development are commercially interesting,” the company said in the statement.

“The evaluation of hydrocarbon resources confirms a potential of billions of barrels of oil in the sea off Guinea Bissau for which FAR Limited has licenses,” it added.

FAR Limited shares its exploration licenses in three blocks in the sea off Guinea Bissau with other oil sector companies. (macauhub)