Under the terms of the farmout of Mali Blocks 7 and 11, Heritage Oil Corporation will earn a 75 percent interest in exchange for funding the work programme for the next 2 license years, including the acquisition of 2D seismic in both blocks and the drilling of one exploratory well to a depth of at least 2000 metres, at a minimum cost of almost US$14 million. The seismic acquisition is expected to be completed during 2008 with the well to be drilled soon afterwards. The farmout is contingent upon final authorization from the Mali Government which is expected to be received in the near future.
The two license areas total almost 73,000 square kilometers (18 million acres) and are located in the Mesozoic-age Gao graben, part of the west African rift system. Hydrocarbon discoveries have been made in many Mesozoic grabens in central and west Africa; in contrast, the Gao graben is almost unexplored, with only 600 km of 2D seismic and one well drilled in 1979. The seismic data, acquired in 1974, demonstrate the presence of a thick, prospective, sedimentary section. The detailed aeromagnetic data flown by Centric Energy in 2006 demonstrate the extent of the graben system and the areas of focus for the next seismic acquisition.
