Samo-1 hits water for FAR in Gambia
The first well to be drilled offshore The Gambia since 1979 has encountered water bearing sands in a disappointing result for operator FAR Limited. Samo-1 was targeting best estimate recoverable resources of 825mmbbls oil in shelf edge Albian sandstones located around 5km south of the Cairn operated SNE field in Senegal, in which FAR is also a partner. The well was an extension of and on trend with similar sands in SNE that had been successfully drilled and proven in nine exploration and appraisal wells. Samo-1 was located in Block A2, immediately adjacent to SNE and this proximity was reflected in the well being assigned a COS of 50%.
Read more...Some way to go for FAR in FAN
FAR has today released independently assessed resource figures for the FAN deepwater basin discovery offshore Senegal. RISC assigns 2C recoverable resources of 198mmbbls, based on data from the FAN-1 discovery well, drilled in 2014. Given that the well encountered thin reservoir sands of disappointing quality, the JV has since focused on appraising and developing the more attractive SNE field that sits nearby in shallower water on the shelf.
Read more...Kosmos exploration hiccups
Kosmos this week announced that its most recent exploration well offshore Mauritania, Lamantin-1, was water bearing.
The well is the second disappointment in a four well exploration campaign offshore Mauritania and Senegal designed to test the outboard basin floor fan fairway. Since its Tortue-1 discovery in 2015, the company had enjoyed a 100% success rate in the region, with 25 Tcf discovered across five wells.
Read more...Cairn/FAR return to deepwater FAN in Senegal
The next well to be drilled by the Cairn/FAR joint venture offshore Senegal will be the FAN South-1 exploration well, marking a shift away from the shelf and back into the basin where the first exploration well, FAN-1, was drilled in 2014.
Read more...Wells to watch in 2017
Since the oil price crash of 2014, exploration has been particularly badly hit as companies looked to trim expenditure. Wood Mackenzie estimates that 2017 exploration will account for 8% of upstream expenditure, down from historic norms of 14%. In this more difficult environment, any surviving exploration has tended to be led by majors, for example ExxonMobil’s giant Liza discovery offshore Guyana in 2015. In our most recent Exploration Watch, we highlight wells due to spud in 2017 that involve independent companies, with resources estimates greater than 100mmboe. Our exception is the much anticipated multi-billion barrel potential Korpfjell prospect in the Barents Sea offshore Norway, which is operated by Statoil and partnered by major companies.
Read more...2017 Senegal appraisal to kick off in January
Cairn Energy confirmed today that it will return to drilling offshore Senegal by the end of January this year, with two firm wells designed to further evaluate its 473mmbbl SNE discovery. The Stena DrillMax is contracted for these two appraisal wells together with multiple follow on options yet to be confirmed but which could include exploration wells in addition to further appraisal.
Read more...Conoco sells Senegalese discovery blocks - fair price?
Conoco’s sale of its interests in Senegal can be used as a barometer of industry sentiment and as a yardstick on valuation of the assets.
We believe the deal reached was a fair reflection of the value of the assets given the current environment, where the collapse in the oil price has lead to a re-evaluation within the industry. Conoco may have signalled its intent to sell the assets, but as a result this was an open process where all comers could have bid.
Read more...Thoughts post Cairn FY14 results & India tax update
Since we posted our blog about Cairn’s results presentation, the company has released material news on the Cairn India tax situation. It confirmed that it has received from the Indian income tax department a draft assessment order quantifying the tax claim for the 2006-07 fiscal year at $1.6bn, plus any applicable interest and penalties. Cairn had not previously given guidance on the Indian tax assessment.
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