Multi-billion barrel potential on trend with SNE field in Senegal
FAR has acquired an 80% working interest and Operatorship in two highly prospective offshore Blocks – A2 and A5 – in The Gambia, located on trend with and adjacent to FAR’s Senegal blocks and the world class SNE Field, with potential prospective resources of more than one billion barrels of oil. The Gambia blocks contain large prospects similar to the SNE Field ‘shelf edge’ play.
The Gambia blocks A2 and A5
FAR Limited has expanded its West African exploration portfolio in the offshore Mauritania-Senegal-Guinea-Bissau Basin through a farm-in deal with US based oil and gas company, ERIN Energy Corporation, to acquire an 80% working interest and operatorship in two highly prospective offshore blocks, A2 and A5, in The Gambia.
The farm-in requires FAR to fund ERIN up to US$8 million through an exploration well, expected to be drilled late in 2018.
Blocks A2 and A5 are adjacent to and on trend with FAR’s world class SNE oil field discovery and have significant exploration potential.
The blocks cover an area of approximately 2,682km2 within the rapidly emerging and prolific Mauritania-Senegal-Guinea-Bissau (‘MSGB’) Basin. They lie approximately 30km offshore in water depths ranging from 50 to 1,200 metres.
In combination, Blocks A2 and A5 have potential to contain prospective resources in excess of one billion barrels of oil (on an unrisked, best estimate, 100% basis).
From 1,504 km2 of modern 3D seismic data acquired in the blocks, FAR has identified large prospects similar to the ‘shelf edge’ plays FAR is targeting in Senegal. FAR has mapped three potentially drillable prospects and leads. FAR and ERIN expect to undertake 3D seismic reprocessing and interpretation during 2017 in order to mature prospects for drilling in late 2018.
Under the terms of the farm-in agreement, FAR is to acquire an 80% working interest and become the operator by making an upfront payment of US$5.18 million and funding up to US$8.0 million of ERIN’s share of the cost of an exploration well.
FAR’s share of the cost of the exploration well is expected to be in the order of US$25 to US$30million.
The Gambia, officially the Republic of The Gambia, is the smallest country in mainland Africa and is surrounded by Senegal except for its coastline on the Atlantic Ocean. The Gambia is situated on either side of the Gambia River, the nation’s namesake, which flows through the centre of the country.
For further information and up-to-date progress on FAR’s The Gambia licences, please visit the Announcements & Reports section of the Company website.