FAR getting ready to drill Gambian prospect

Australia-based FAR Limited is preparing to drill at its Samo prospect offshore The Gambia in late 2018. 

FAR is the operator of A2 and A5 blocks with an 80% interest while the remaining 20% interest is held by Erin Energy. FAR obtained the interest and operatorship over these two blocks, close to the SNE discovery offshore Senegal, in 2017 through a deal with Erin Energy. The deal was approved by the country’s government in July 2017.

Following the government approval, FAR has assumed the role of the operator of the blocks. FAR’s plans to drill the giant Samo prospect in 3Q 2018 are well underway, the company said in its 4Q 2017 update on Wednesday.

During the fourth quarter of 2017, FAR completed detailed geotechnical studies and assessed significant hydrocarbon resource potential in its two blocks offshore The Gambia.

The Blocks A2 and A5, covering 2,682km2 , are adjacent to and on trend with the world-class SNE oil field and have significant exploration potential. A2 and A5 sit within the rapidly emerging and prolific Mauritania-Senegal-Guinea-Bissau-Conakry (MSGBC) basin and lie approximately 30km offshore in water depths ranging from 50 to 1,500 meters.

From 1,504km2 of modern 3D seismic data acquired in A2 and A5, FAR has identified large prospects similar to the “shelf edge” play FAR has successfully drilled in Senegal.

FAR has mapped two drillable prospects, Samo and Bambo, and additional leads in the blocks. The two prospects have a combined best estimate Prospective Resource of 1.1 billion barrels on a gross unrisked basis (926 million barrels net to FAR).

FAR previously said that the Samo well would be the only exploration well to be drilled offshore The Gambia since the Jammah-1 well drilled in 1979. The Samo prospect has two target intervals, is on trend and shares many similarities with the giant SNE oil field.

Potential farm-out

FAR also said in its 4Q update that, during that period, it received expressions of interest from third parties to farm into the A2 and A5 blocks. The company is currently considering these offers.

When it comes to the company’s financial position, FAR entered the first quarter of 2018 with a cash position of $49.9 million. FAR’s budget for 2018 remains consistent with expectations from the last quarterly report – the majority of its expenditure will be in supporting the Senegal project and initiating plans to drill in The Gambia.

In related news, the joint venture which operates the SNE field offshore Senegal and has FAR as one of its partners, aims to have the Senegalese government approval for the SNE field development plan by November 2018 and plans to make a final investment decision for the project in early 2019.

Offshore Energy Today Staff