FAR speeding up evaluation of Gambian well results with revised exploration plan in mind

Australia’s FAR Limited is working towards expediting the evaluation of results encountered during the drilling of the Bambo-1 exploration well offshore The Gambia, hoping to devise a new exploration plan.

FAR feels encouraged by the data collected during the drilling programme, believing there is a prolific oil source in the area, despite encountering no moveable oil within this well.

FAR spud the Bambo-1 exploration well in mid-November 2021, using the Stena IceMax drillship. Following a temporary stop in drilling operations in December 2021 due to significant fluid losses, resulting in additional time and cost for the completion, the firm decided to plug and side-track the well to continue drilling to the planned total depth.

At the end of December, FAR completed the Bambo drilling programme, feeling buoyed by oil shows and potential reservoirs encountered in the Bambo-1 well and Bambo-1ST1 sidetrack well despite no live oil columns being present.

Located in Block A2 where FAR is the operator with a 50 per cent interest while its joint venture partner, PC Gambia – a subsidiary of Petronas – holds the remaining 50 per cent interest, the well fulfils the minimum work obligation of drilling one exploration well for the Initial Exploration Periods for both the A2 and A5 Licences.

FAR informed within its fourth-quarter report on Wednesday that it was highly encouraged by the data collected in the Bambo drilling programme and its implications for potentially large oil accumulations in Blocks A2 and A5 offshore The Gambia. In addition, the company is accelerating the evaluation of the well results and looks forward to announcing a revised plan for exploration in the area in the coming months.

Following the completion of the sale to Woodside, FAR has no remaining interest in the RSSD licences offshore Senegal – Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore – however, FAR may receive future payments of up to $55 million from the time of first oil production from the Sangomar field, which is targeted for 2023.

Under the terms of the agreement, these payments are contingent on the future oil price being above $58 per barrel.

FAR holds a 21.43 per cent interest in the Sinapa (Block 2) and Esperança (Blocks 4A and 5A) licences in Guinea-Bissau, which have been extended for 3 years and are valid until 2 October 2023 during which time there is an obligation on the joint venture to drill an exploration well.

Therefore, the company remains open to farming down its interest prior to drilling a well and is working with the operator, PetroNor, to finalise the 2022 work program and budget for approval and finalisation.

The two players are undertaking a full review of a potential well location for the 2023 programme with the Atum Propsect as the key drill target – mapped to contain best estimate prospective resource of 471 mmbbls, gross, unrisked, 101 mmbbls net to FAR – while the operator is also doing a review of the commerciality of the Sinapa discovery in the offshore shallow water.

The Sinapa discovery contains 13.4 mmbbls of oil with 2.9 mmbbls net to FAR in 2C contingent resources and there is an estimated 72 mmbbls of propective resource in the West and East Sinapa Prospects that are able to be tied into a potential development at Sinapa.

FAR holds a 100 per cent interest in Petroleum Exploration Permit WA-458-P, through its wholly-owned subsidiary, Lightmark Enterprises.

The license is located in the prolific oil-producing Dampier Sub-basin along Australia’s North West Shelf and the firm has confirmed that divestment activities for some or all of FAR’s interest in WA-458-P are ongoing. The company has a drill or drop obligation on the licence in early 2023.