Petroleum Africa
Find us on: 
Friday, July 23, 2021
In its recent Q2 Report, Australia’s FAR highlighted its activities in The Gambia, Senegal and Guinea Bissau, which include the sale of the RSSD assets and the mobilization of the drillship to Gambia for the drilling of the offshore Bamboo-1 well.
Highlights
The Gambia – Blocks A2/A5 (FAR 50% WI and Operator)
FAR continued operational preparations for drilling the Bambo-1 well in Q4 of 2021. FAR has contracted Exceed’s well management team in Aberdeen to assist with the planning and execution of the well. The contract for the drillship was executed during the quarter and rig owner and operator, Stena, has advised the window for mobilization of the Stena IceMax drillship to Gambia to be in the second half of October.
In early July, the bundled services contract with Schlumberger was executed for delivery of the drilling fluids and cement for drilling operations and rental of the wireline services and logging equipment for the well. This equipment is all scheduled to be delivered to the drill ship or FAR’s base of operations at the Port of Dakar prior to spud in late October/early November. The exact date of spud will be dependent on mobilization of the drill ship. Other contracts for key services are in place, and long-lead materials and equipment have been ordered and drill pipe for the operation has been delivered to the Dakar shore base. In the forthcoming quarter, FAR expects to award contracts for helicopter services and marine support vessels that will transport crew and equipment to the drill ship.
The Environment and Social Impact Assessment (ESIA) has been approved and a range of secondary level permits are in progress with the regulatory authorities of The Gambia.
The well is designed to drill into a series of vertically stacked targets (Figure 2) with a combined estimated recoverable, prospective resource of 1,118 mmbbls (arithmetic sum of the Best Estimates, unrisked, 559 mmbbls net to FAR*) and the chance of geological success for the various horizons ranges from 7% to 37% (Table 1).
The targets are: Bambo – A shallower reservoir not intersected during the Senegal campaign; Soloo – The extension of the hydrocarbon-bearing reservoirs in the adjacent Sangomar Oil Field, Senegal; and Soloo Deep (S552 & S562) – two additional horizons, also not penetrated during the Senegal drilling campaigns. Soloo Deep has a lower chance of success but higher potential volumes.
The approved budget for the Bambo-1 well is US$51M with US$6.5M expended to date. At 50% working interest, FAR’s share of the budgeted well cost is US$25.5M with US$22.25M yet to be spent. FAR’s share of the well cost will be funded from cash at hand.
Outside well preparations for the drilling of the Bambo-1 well, FAR is undertaking success case planning in the event of a discovery and continuing evaluation of the additional prospects in A2 and A5 (Jobo, Jatto and Marlo) as well as reviewing opportunities for additional acreage in a success case. Success in the Bambo-1 well will high grade these other prospects for drilling in the future.
Guinea-Bissau (FAR 21.43% WI)
The Sinapa (Block 2) and Esperança (Blocks 4A and 5A) licences in Guinea-Bissau have been extended for 3 years and are valid until 2 October 2023 during which time there is an obligation on the Joint Venture to drill a exploration well. FAR is working with new operator, PetroNor, to finalise the 2022 work program and budget for approval and finalisation by the end of October. FAR has commenced a farm down of it’s interest prior to drilling a well before October 2023.
PetroNor and FAR are undertaking a full review of a potential well location for the 2023 program with the Atum Propsect the key drill target (mapped to contain Best Estimate Prospective Resource of 471 mmbbls, gross, unrisked, 235 mmbbls net to FAR)
The Operator is also undertaking a review of the commerciality of the Sinapa discovery in the offshore shallow water. Sinapa contains 13.4 mmbbls of oil with 2.9 mmbbls net to FAR in 2C contingent resources (Best Estimate). In addition, there is an estimated 72 mmbbls of propective resource in the West and East Sinapa Prospects that are able to be tied into a potential development at Sinapa (Best Estimate, unrisked, 15.4 mmbbls net to FAR).
Offshore Senegal Rufisque, Sangomar and Sandomar Deep (FAR13.7% Working Interest (WI))
On 19 January 2021 the FAR group executed a Sale and Purchase Agreement with Woodside in relation to FAR’s Senegal RSSD asset. Shareholders approved the sale of FAR’s interest in the RSSD project to Woodside at a General Meeting held on 28 April. In the intervening period, FAR and Woodside worked cooperatively to satisfy the conditions precedent for the sale and close out remaining tasks.
In events post the end of the quarter, formal completion of the sale took place on 6 July in Senegal and monies received by FAR in Australia on 7 July. As consideration for the sale Woodside has paid FAR US$45 million and reimbursed FAR’s share of working capital for the RSSD Project from 1 January 2020 of approximately US$82 million, totalling US$126 million (including deductions for interest charged on outstanding cash calls). Additional payments to FAR, up to US$55 million, are contingent on future oil price and timing of first oil. First oil is targeted for 2023. Following the completion of the sale to Woodside, FAR has no remaining interest in Offshore Senegal.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
