FAR Delighted with Updated Estimates of Its Reserves Offshore Africa

The Board of FAR Limited today announced the outcome of the updated prospective resource estimates following the completion of internal technical studies.  

The new assessment of the prospective resources, on an un-risked, best-estimate basis, concludes that approximately seven billion barrels of hydrocarbon resources (5.4 billion barrels attributable to FAR) could be contained within just two of FAR’s offshore African oil exploration permits.

FAR managing director, Cath Norman, said, “The prospective resources that have now been identified in our Senegalese and Kenya L6 projects are much larger than we originally assessed.  There has been no oil and gas drilling off the Senegal coast for over 40 years and none in this Kenyan block for 20 years. We are confident of  introducing a world class partner into both of these project areas. Modern seismic data and other new technologies clearly indicate very strong potential in these areas and we are aiming to drill in these blocks before year end”.

Kenya – Block L6

In FAR’s L6 permit (FAR 60% operator interest) off the coast of Kenya, recently received processed 3D seismic data, combined with studies of  existing 2D data has identified a number of hydrocarbon play types and prospects.

From the 3D data FAR has matured three prospects (Tembo, Kifaru and Kifaru West) in the Kenya L6 block which have prospective resources of 327, 178 and 130 million barrels of oil (un-risked best

estimate, 100% basis) respectively, or in a gas only success case, 807, 517 and 388 billion cubic feet of gas. The chances of a discovery of the three prospects have been assessed to be 21%, 19% and 18% respectively. The first exploration well location will be selected shortly.

Combined prospective resources for the L6 block have been assessed at 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas (un-risked, best estimate, 100% basis).

FAR also holds a 30% interest in offshore Block L9 operated by Ophir.

 Senegal 

FAR has identified numerous play types and oil prospects from recently completed studies of 3D seismic data on our Senegal blocks (FAR 90%, operator).

Eleven prospects have been identified ranging in potential size from 58 to 632 million barrels of prospective oil resource (un-risked, best estimate, 100% basis). Importantly, many of the prospects have associated seismic amplitude responses strengthening confidence in the potential for the presence of hydrocarbons.

In combination, the Senegal blocks have prospective resources of 3.585 billion barrels of oil (unrisked best estimate, 100% basis).

Cath Norman said, “Success in exploration drilling on any of the above prospects in Senegal or Kenya will substantially improve the probability of success in the remaining prospects. We are very keen to start drilling on these targets.” 

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February 27,2013