The MV Symphony seismic vessel is scheduled to commence acquiring seismic for FAR
Offshore Senegal during the second week of February 2007. The vessel is currently active for
the Italian group Edison in an adjacent concession. FAR's survey will be the largest 3D
survey conducted Offshore Senegal as part of a world class exploration program being
conducted by Hunt Oil and has the potential to place Senegal on the map as an investment
Hunt/FAR are sharing the MV Symphony seismic vessel with the Italian group Edison and
have applied savings that will result from sharing the mobilization costs toward extending the
3D coverage by 50 km2. The increased survey area comprising a total of 2,050 km2 will now
include prospect C1, in the southwest corner of the Sangomar Offshore block. Integrating C-
1 into the overall 3D grid offers significant advantages compared to reprocessing old Shell
seismic data over this prospect.
The MV Symphony vessel will move on location after first acquiring Edison's 1500 km2 3D
in the Rufisque Deep Offshore block adjacent and to the north. The aggregate of this
combined activity is likely to substantially upgrade activity in this relatively under-explored
but highly prospective northwest African margin.
The acquisition of 2,050 square km of 3D seismic data is being conducted by the French seismic
company CGG. FAR holds a 30 percent participation in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore blocks. These offshore concessions, located in
the Mauritania-Senegal, Guinea Bissau Basin, offer potential for world class oil accumulations.
Senegal Exploration Opportunity
- Deep water play with giant hydrocarbon potential in the Senegalese portion of the
productive Mauritania-Senegal-Guinea Bissau Basin. Large closures identified at the
Aptian carbonate and Cenomanian sandstone levels, along with numerous Senonian
stratigraphic leads with significant upside potential exceeding 1 billion barrels
recoverable within the license.
- The Sangomar-Rufisque offshore license covers an area of 14,981 sq km over the
shelf, slope, and basin floor.
- Contract terms are among the best in the world, and were recently improved as a
result of the government reducing the tax rate to 25%.
- FAR is partnering Senegal Hunt Oil Company (SHOC) in evaluating this
opportunity, by contributing toward a 2050 sq km 3D seismic acquisition program. The acquisition is utilizing the vessel "Symphony," one of the largest seismic vessels in the world.
- The proposed 3D survey is designed to validate several potentially significant prospects and a number of leads identified by Hunt based on existing 2D seismic data in addition to identifying additional prospects.
- The northwest African margin is relatively under-explored but hosts numerous recent,
sizeable, and intriguing discoveries including the Woodside operated Chinguetti and
Tioff discoveries in adjacent Mauritania.
Hunt Oil Company
A privately owned exploration and production company, Hunt Oil has successfully conducted
worldwide petroleum operations for 70 years. Today it ranks as one of the world's leading
independent energy companies. Hunt currently conducts or participates in major production
operations in the United States, Canada, Yemen and Peru.
- Senegal Hunt Oil Company (Operator) 60%
- First Australian Resources Limited 30%
- Petrosen (State Oil Company) 10%
With its capital city of Dakar located on the westernmost point of Africa, Senegal is a
gateway to the continent. Senegal is considered one of Africa's most politically and
economically stable countries and hosts some of the best transportation, telecommunications
and communication infrastructure in West Africa. It has been a functioning democracy since
independence from France in 1960 and enjoys free and fair elections. Contract terms for oil
and gas exploration and production are among the best in the world.
Other Activity – West Africa
- West Africa along with the Deepwater Gulf of Mexico continues to be viewed by
industry as one of the few regions outside the Middle East capable of hosting big enough
deposits to attract the major oil companies. (Refer Herold Oil & Gas Perspectives Jan 5,
- A recent auction of acreage in the Congo Basin, offshore Angola for three deepwater
exploration tracts saw international oil companies bid in excess of US$3.1 billion in
signature bonuses alone, reportedly the highest ever offered for exploration anywhere in
- Gaz de France has recently agreed to study the feasibility of an LNG project based on
deepwater gas discoveries in nearby Mauritania.
- Tullow Oil PLC has successfully bid AUD$1.5 billion for Hardman resulting in a
tightening of the pool of listed entities controlling acreage along the Mauritania-Senegal-
Guinea Bissau Basin in West Africa.
- Kuwait Foreign Exploration Co recently purchased BG Group PLC's interests in
Mauritania for $128 million.
These activities confirm the growing importance of West Africa in world energy and provide
a barometer against which to assess the importance of FAR's West African holdings. Whilst
FAR has received several expressions of interest from a host of industry participants in
relation to its West African concessions the forward plan is to retain the present equity level
in order to provide the best possible leverage for shareholders.
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