FAR gets option to earn stake in Djiffere block (Senegal)

FAR Ltd has entered into a farm-in option agreement with a subsidiary of Trace Atlantic Oil Ltd for the Djiffere block offshore Senegal, adjacent to FAR’s Rufisque, Sangomar and Sangomar Deep (RSSD) blocks that contain the 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. FAR notes that the potential of this shelf trend has been proven by the SNE-1 discovery, which was ranked by IHS CERA as the largest oil discovery worldwide in 2014.

FAR says it 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 adds that it 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 company notes that the Djiffere block, being in shallow water, is suitable for low-cost drilling and near-term development projects.

Under its agreements with Trace, FAR says it has the option to earn a 75% working interest in the Djiffere block by drilling an exploration well before July 31, 2018 (subject to Government approvals). The farm-in option can be exercised by FAR at any time before October 31, 2016, by which time FAR expects to have completed the firm 3 well shelf drilling program in its RSSD blocks.

Polarcus in 3D seismic survey

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. According to FAR, the survey will be completed during September 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 $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.”

The Djiffere Block

The Djiffere PSC covers an exploration block of 4,459 km2 offshore central Senegal. The block is in water depths of between 10m and 250m, and predominantly less than 100m.

To the north, the Rufisque Block (operated by Cairn Energy, with partners FAR and ConocoPhillips) contains the Rufisque Dome wells, with several incidences of oil shows of Cretaceous age. To the west lies the Sangomar Block where in 2014 the FAN-1 and SNE-1 wildcat wells made new oil discoveries in 2014.

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