Drilling operations on the FAR Limited VR-1 well offshore Senegal have reached a depth of 2759m, wireline logging and sampling through the SNE section are complete and preparations are underway for deepening the well into the Aptian carbonate objectives below the SNE field.
FAR’s evaluation of the well results are as follows:
• The reservoir units are in oil as prognosed
• The lower, 500 series 520 reservoir (16m in oil), a key reservoir to the phase 1 development of the SNE field, exhibited excellent reservoir properties, superior to all other reservoirs sampled in the SNE field to date
• The deeper 540 reservoir (11m in oil) has only been seen in the SNE-2 well in oil (2m)
• Samples of oil have been taken
• Along with other appraisal wells, the well confirmed a 97m gross oil column with greater than expected net pay and thickest net pay of all appraisal wells drilled to date
FAR anticipates that the results of the VR-1 well, together with the recent SNE-5 results will lead to a revision of contingent resource estimate for the SNE field and have an impact on design of the development plan in the coming months. The 1C resource is currently 348mmbbls* (gross, unrisked, ref ASX announcement 23 August 2016) compared to the minimum economic field size for the SNE field of 200mmbbls.
The VR-1 well is the 8th successful well to be drilled offshore Senegal since drilling commenced in 2014. Currently the well is 4 days ahead of budget reflecting similar efficiencies experienced at the SNE-5 well.
The VR-1 well is located approximately 5kms west of the SNE-1 discovery well and is being drilled to appraise the lower and upper reservoir units in the western part of the SNE field. The VR-1 well will also assess the potential for additional reservoir units within the upper reservoirs in the western part of the SNE field. In addition, the VR-1 well will examine deeper Aptian carbonate exploration targets under the SNE field (refer to Suum lead in FAR ASX announcement dated 7 February 2017).
Budget and drilling efficiencies
Due to the efficiencies achieved on the SNE-5 well and projected improved drilling performance, FAR estimates that the inclusion of the VR-1 well into the drilling program will have a minimal incremental funding impact for FAR (estimated at approximately A$2-3 million). FAR reported a closing cash position at 31 December 2016 of $47 million. FAR is able to fund the additional VR-1 well.
FAR Managing Director, Cath Norman, said,
“The VR-1 well has been highly successful, providing important information regarding the geology of the western flank of the SNE field and in particular the nature of the 500 series reservoirs. Understanding these reservoirs is critical to finalising the Phase 1 development concept and plan. The operations team and the Stena DrillMAX continue to perform well and it bodes well for further cost savings in the drilling program. We look forward to bringing our shareholders results from our exploration of the deeper Aptian carbonate play.”
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