New company FAR enters Gambia offshore blocks

Australian player FAR Ltd farms into Erin Energy tracts near SNE oilfield, with wildcat seen next year.

Oil exploration

According to the Upstream news, an Australian oil and gas exploration company FAR Ltd has farmed into and taken operatorship of a pair of blocks off Gambia from Erin Energy.

The Company focuses on exploration for oil and gas in Australia and Africa and their principal activities include conducting exploration for oil and gas deposits, conducting activities to identify and evaluate new exploration projects, and monetization of oil.

The new operator and its partner are now planning a wildcat on the tracts, which are adjacent to acreage containing the SNE oilfield off Senegal.

FAR is getting an 80% stake in both blocks A2 and A5, with Erin to retain the remaining 20% and a carry on the first exploration well, planned for late next year.

FAR will pay Erin’s US$8 million share of drilling costs, even if Erin’s share comes in less than that amount.

The new operator is also paying US$5.18 million for the farm-in.

Erin has already acquired 1504 square kilometres of 3D seismic over the blocks and has identified prospects, which it said are “similar to the ‘shelf edge’ play FAR is targeting” off Senegal. The partners will reprocess and interpret the data this year.

The blocks cover around 2683 square kilometres in the Mauritania-Senegal-Guinea Bissau basin and lie in waters of 50 to 1200 metres some 30 kilometres offshore.

FAR partners operator Cairn Energy at SNE, where the latter estimates contingent recoverable reserves at about 470 million barrels of about 2.7 billion barrels in place.

Cairn has just struck more oil off Senegal at the Vega-Regulus (VR-1) well, which intersected a 97-metre gross oil column across multiple reservoirs.

It added the lower 500 series 520 reservoir exhibited excellent reservoir properties which it claimed were superior to all other reservoirs sampled in the SNE field to date.

Meanwhile oil found in the deeper 540 reservoir had only been seen in one previous well, the SNE-2 well, with a larger 11-metre oil pay being found at VR-1

The VR-1 well lies about five kilometres west of the SNE-1 discovery well and was drilled using the Stena DrillMax drillship to appraise the lower and upper reservoir units in the western part of the SNE field.

The well will now be deepened to examine deeper Aptian carbonate exploration targets under the field with potential gross mean prospective resources in excess of 100 million barrels.

Once operations at VR-1 are complete, it will move to drill the SNE-6 well to carry to complete a planned interference test before spudding the SNE North well, aiming for a prospect that could house about 80 million barrels of resource and has a 67% chance of success.

 

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