FAR hits second Senegal oil discovery

THE ROADHOUSE BOWSER: FAR Ltd (ASX: FAR) has claimed a second oil discovery offshore Senegal in West Africa in the company’s SNE-1 well.

FAR said the SNE-1 well has discovered a 95 metre gross oil bearing column with net oil pay zone thickness of 36 metres in Albian aged sandstones which display reservoir potential.

High quality 32 degree API oil has been recovered to the surface.

The SNE-1 well is located in 1,100 metres water depth, approximately 100 kilometres offshore in the Sangomar block with a target total depth of approximately 3,000 m.

FAR has issued notices of Discovery for the SNE-1 well and FAN-1 well to the Government of Senegal.

 

Location of the two Senegalese wells in the FAR 3D seismic area, offshore Senegal. Source: Company announcement

 

“This is another very significant oil find for FAR and Senegal,” FAR managing director Cath Norman said in the company’s announcement to the Australian Securities Exchange.

“Based on preliminary estimates it is highly likely to be a commercial discovery.

“The SNE-1 discovery is a company making event for FAR following our earlier oil discovery in the FAN-1 well.

“The SNE-1 discovery has potential to lead to a large stand-alone development and is an important step forward in establishing an entirely new petroleum province which would be transformational for Senegal.

“It is incredible that FAR has made two very important oil discoveries with its first two Senegal wells.

“We expect to resume drilling on the SNE-1 well shortly to evaluate the deeper Aptian carbonate objective.

“The FAN-1 well intersected a significant gross 500m oil-bearing section which indicates the presence of a prolific oil generating province.

“The SNE-1 well proves hydrocarbons have migrated up onto the shelf area which bodes well for the extensive suite of prospects yet to be drilled in our Senegal blocks.

“FAR looks forward to working with the Government of Senegal and our joint venture partners in finalising follow up appraisal and exploration drilling plans.”

FAR’s initial analysis of the SNE-1 well data indicates:

95 metre gross oil bearing column with a gas cap;

Albian reservoir sands with net oil pay of 36 metres;

High quality oil of 32 degrees API from samples of gas, oil and water recovered to surface;

Operator’s preliminary estimates of the gross contingent resource range from P90, 150 million barrels (mmbbls), P50, 330 mmbbls and P10, 670 mmbbls (net to FAR; P90, 23 mmbbls, P50, 50 mmbbls, P10, 101 mmbbls).

FAR indicated the results of the FAN-1 well and the final analysis from the SNE-1 well will be used to decide optimal follow up drilling locations to determine the extent of discovered accumulations and to evaluate the wider potential identified within the Senegal blocks.

This additional activity is targeted to start in 2015.

Email: info@far.com.au

Website: www.far.com.au