First Australian Reports Offshore Senegal Seismic
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 destination.
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, 2007).
- 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 the world.
- 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.
Operates 3 Offshore Rigs
- Woodside To Raise $2B, Look To Offshore Gas Project For Growth (Feb 14)
- Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
- Global LNG: Faltering Supply Prompts Short-Covering Price Rally (Aug 11)
Company: BG Group more info
- Shell Mulls LNG-Hub Network as Use by Ships and Trucks Expands (Jul 11)
- Tanzania Laws Would Allow Govt to Tear Up Mining, Energy Deals (Jun 29)
- Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 05)
Company: Edison more info
- Total, Edison Get Greek Go-Ahead For Oil And Gas Exploration (Feb 28)
- Louisiana LNG Project Gains European Customer (Sep 27)
- Sources: Total-Led Consortium Bids for Greek Offshore Gas Drilling Block (Feb 05)
Company: Gaz de France more info
- Grenland Group Delivers Gjoa Subsea Structures (Sep 01)
- Plexus to Supply Wellhead Systems for Mediterranean E&P Activities (Jul 20)
- ELNG Completes First Ever Health & Safety Partnership Program with GE O&G (Jul 15)
Company: Hunt Oil more info
- Hunt Oil Company Says It Will Cut 10% Of Its Workforce (Apr 07)
- Pluspetrol to Invest $500M in Peru Natgas Block (Aug 04)
- KNOC Subsidiary Gathers Canadian Assets From Hunt (Dec 15)
Company: Tullow Oil more info
Operates 1 Offshore Rigs
- UK's Tullow Oil Names New Head Of Ghana Operations (Feb 15)
- Ivory Coast Awards Tullow Two New Oil and Gas Blocks (Jan 17)
- UK's Tullow Oil Lifts Outlook On Higher Crude Prices, Output (Nov 08)
Company: CGG more info
- French Oil Services Firm CGG Files For Bankruptcy (Jun 14)
- CGG Wins DPC Contract in Brunei (Feb 21)
- CGG Looks to Achieve Financial Restructuring (Jan 05)
Company: First Australian Resources more info
- Senegal Grants Extension on FAR's Offshore Blocks (Dec 04)
- FAR Receives Extension on Offshore Senegal Blocks (Nov 13)
- FAR Updates on Offshore Senegal Exploration Activities (Sep 21)
Company: Kuwait Foreign Petroleum Exploration Co. (KUFPEC) more info
- Shell Cancels Sale Of Thai Gas Field Stakes To Kuwait's KUFPEC (Oct 04)
- PETRONAS Awards SK410B PSC Offshore Malaysia to PTTEP-led JV (Jul 22)
- Chevron Signs Up Australia's Alinta To Buy Gas From Wheatstone (Apr 19)
Company: Petrosen more info
- ConocoPhillips Confirms FAR Holds Pre-Emption Right for Senegal Project (Aug 23)
- Kosmos Energy Makes 'Significant' Gas Find Offshore Senegal (Jan 27)
- SNE Appraisal Program Offshore Senegal Continues with SNE-3 Drilling (Jan 19)