FAR Ltd (ASX: FAR) wishes to advise that drilling has resumed on the FAN-1 well offshore Senegal. FAR had previously announced a modification to the Senegal drilling programme in order to incorporate essential maintenance. FAR holds 15% and is in a Joint Venture with Cairn (40%) and Operator, ConocoPhillips (35%) and Petrosen (10%).
Drilling to date on FAN-1 has reached a depth of approximately 3,000 metres. The well is planned to be drilled to a depth of approximately 5,300 metres. The second Senegal well, SNE-1 is currently suspended and drilling will resume on completion of the FAN-1 well. SNE -1 has been drilled to a depth of approximately 1,900 metres and will be drilled to a total depth of approximately 3,300 metres.
FAR managing director, Cath Norman, said, “These two wells offshore Senegal have the potential to radically alter the prevailing international view of the hydrocarbon potential of Senegal where no offshore wells have been drilled for more than 20 years. The two well program in the Atlantic margin is being closely monitored by many international oil and gas players because of the large prospect sizes being drilled and the potential for numerous nearby follow up targets in the event of success.”
The FAN-1 well will test a stacked fan structure with the potential to contain approximately 900 million barrels of oil (mmbbls)* with approximately 135mmbbls net to FAR* which owns a 15% working interest. FAN-1 will be followed immediately by the SNE-1 well to be drilled on the shelf targeting approximately 600mmbbls of oil* with approximately 75mmbbls net to FAR* (reference: FAR ASX release of 27 February 2013).
As previously announced, the drilling program has been designated as “tight” by the Operator and hence no information related to depth or formation will be provided during the drilling beyond what is required to meet ASX continuous disclosure obligations.
About the drilling offshore Senegal
FAN-1 is the first exploration well in a two well program, offshore Senegal with the wells to be drilled back to back. The first well will be located on the North Fan prospect in 1,500m water depth. This well will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water. These will be the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years. The two exploration wells will test combined prospective resources of approximately 1.5 billion barrels of unrisked prospective resources* (225mmbbls net to FAR*) and FAR retains a 15% working interest in the blocks. (Reference: FAR ASX release of 27 February 2013).
The FAN-1 well is a pure exploration well and, even if successful, will not be completed as a commercial production well. In the event of a success, the Joint Venture may decide to conduct further drilling and evaluation activities.
Source: Far Limited Press Release