First Australian: Offshore Senegal Seismic Begins

First Australian Resources Limited (FAR) said that the MV Symphony seismic vessel has begun acquiring seismic in the Rufisque, Sangomar, and Sangomar Deep blocks offshore Senegal. The survey will be the largest 3D survey conducted offshore Senegal as part of an exploration program that FAR and operator Hunt Oil Co. are conducting.

Both Hunt and 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.

FAR's survey follows Edison's recently completed 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

• A deep water play with giant hydrocarbon potential exists in the Senegalese portion of the productive Mauritania-Senegal-Guinea Bissau Basin. Large closures have been 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.
• The 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.

Participants

• Senegal Hunt Oil Company (Operator) 60%
• First Australian Resources Limited 30%
• Petrosen (State Oil Company) 10%