CGG Awarded Seismic Contract for Work Offshore Senegal

First Australian Resources

First Australian Resources reports that a contract for the acquisition of 2,000 square kilometers of 3D seismic data offshroe Senegal has been awarded to GCC. Details of the award were confirmed by Hunt Oil Company during a recent operating committee meeting held in Dakar at which FAR also gave presentations to the national oil company, Petrosen, and the Ministry of Energy and Mines for the Republic of Senegal.

FAR holds a 30% participation in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore Blocks. These offshore concessions, located in the Maurtania-Senegal, Guinea Bissau Basin, offer potential for world class oil accumulations. The acquisition is set to commence during the first week of December, 2006 and follows immediately behind a 3D survey being acquired by CGG on behalf of the Edison Group, by a separate vessel, in an adjacent offshore block immediately to the North of FAR['s Senegal interests.

Senegal Exploration Opportunity

  • Deepwater 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 14981 square kilometers 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 will partner with Senegal Hunt Oil Company (SHOC) in evaluating this opportunity, by contributing toward a proposed 2000 sq km 3D seismic acquisition program commencing early forth quarter 2006.
  • 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 Tiof discoveries in adjacent Mauritania.

Participants in the Senegal project are Senegal Hunt Oil Company as operator with 60%; First Australian Resources with 30%; Petrosen (State Oil Company) 10%.

Commenting on this announcement, executive Chairman Michael Evans said that:

"FAR is pleased to see the 3D seismic contract has been awarded to CGG and we look forward to firming up some substantial drilling targets. It is also reassuring to see the magnitude of interest being shown by the oil sector along the West African coastline where FAR has gained an early foothold on very favorable terms."