Senegal: Resource upgrade for SNE oil field

Far Ltd has informed that the oil contingent resource estimates for the SNE oil field have been increased.

The company commissioned RISC Operations to prepare an Independent Resources Report for Far’s SNE oil field offshore Senegal. The project is operated by Cairn with 40% stake. Other partners are ConocoPhillips 35%, FAR 15% and Petrosen 10%.

According to Far, the report was prepared as at December 2015 incorporating recent data available from wells SNE-1 and FAN-1 and reprocessed 3D seismic.

The SNE contingent resources set out in RISC’s Independent Resouce Report represent a material increase to the estimates previously reported by Far in late 2014  with the SNE field 2C contingent resource increasing by 42% to 468 mmbbls (100% basis, recoverable).

Far has requested RISC to update its independent assessment of SNE contingent resources following results from each of the wells in the ongoing three well SNE appraisal progam.

Far announced the successful results from SNE-2, the first well of this appraisal program well, in early January. The second SNE appraisal well (SNE- 3) is currently undergoing preparations for a drill stem testing program following the successful drilling, coring and wireline logging of the well. SNE-3 has been drilled approximately 3 km south of SNE-1 at a location designed to evaluate the mid reservoir and upper hetrolithic” reservoir sections.

Step toward ‘significant’ development?

This well will be followed by BEL-1, to be drilled into the Bellatrix Prospect and evauate the Buried Hill exploration play as well as being deepened to appraise the northern part of the SNE oil field.

RISC’s Independent Resource Report notes that the SNE field contingent resource estimates presented have not been updated to reflect the results of the SNE-2 appraisal well or any other changes since December 2015, and that new data may materially impact these contingent resource estimates.

According to Far, the SNE discovery is at a very early stage of appraisal and will require significant further drilling, testing and studies before any commercial development scheme could be defined.

FAR Managing Director Cath Norman said: “The SNE oil field contingent resources estimated by RISC represent a significant upgrade on FAR’s previous estimates. RISC’s 2C contingent resource of 468 mmbbls represents a 42% increase to FAR’s previously reported estimate of 330mmbbls.

“This increase to Far’s SNE oil field contingent resource estimates gives FAR increasing confidence that the SNE reservoirs are of such a scale and extent to justify a significant commercial development.

“Further, our current appraisal drilling program continues with the safe drilling of the SNE-3 well to total depth and we look forward to providing an update of the results of the SNE-3 well on the completion of the flow testing program.”

“We continue to be very pleased with the progress of the evaluation of our world class SNE discovery offshore Senegal.”