FAR Ltd has entered into a farm in option agreement with a subsidiary of Trace Atlantic Oil Ltd for the Djiffere block offshore Senegal. The Djiffere block is adjacent to FAR’s highly prospective Rufisque, Sangomar and Sangomar Deep (“RSSD”) blocks that contain the significant SNE-1 and FAN-1 oil discoveries.
The western part of the Djiffere Block is located along geological trend with the shelf play types identified in the eastern part of FAR’s RSSD blocks. The potential of this shelf trend has been proven by the world class SNE-1 discovery, which was ranked by IHS CERA as the largest oil discovery worldwide in 2014.
FAR has identified multiple large prospects for drilling in its existing RSSD blocks along the shelf trend totalling 765 million barrels of prospective oil resources (gross, unrisked, best estimate, 100%) in a variety of structural play types including Buried Hill and Shelf Edge plays.
FAR has further identified a number of potential shelf structures within the Djiffere block from existing 2D seismic data, with one lead already estimated by FAR to have potential to contain in excess of 100 million barrels of unrisked prospective resources. The Djiffere block, being in shallow water, is suitable for low cost drilling and near term development projects.
Under its agreements with Trace, FAR has the option to earn a 75% working interest in the Djiffere block by drilling an exploration well before 31 July 2018 (subject to Government approvals). The farmin option can be exercised by FAR at any time before 31 October 2016, by which time FAR expects to have completed the firm 3 well shelf drilling program in its RSSD blocks.
FAR has awarded Polarcus a contract to undertake a 3D seismic survey in the Western part of the Djiffere block. This survey, in combination with other seismic data will provide 400km2 of 3D coverage and will evaluate the shelf trend potential within the Djiffere block. The survey will be completed during this month as an extension of the current ongoing 3D seismic survey being conducted by FAR and its Senegal joint venture partners over its RSSD blocks. FAR estimates that its 3D survey in Djiffere will cost US$1.1 million.
FAR’s Managing Director Cath Norman said;
“This option agreement provides FAR with access to exciting new acreage offshore Senegal adjacent to our existing blocks and with increased exposure to the shelf trend prospectivity confirmed by the SNE discovery. With a large 75% equity position in Djiffere, FAR is well positioned to build its acreage position in this highly prospective emerging petroleum province”.
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