Africa-focused explorer FAR has agreed a farm-in option deal with Trace Atlantic Oil on the shallow water Djiffere block offshore Senegal, containing at least one lead potentially containing 100 MMbbl, says FAR.
Djiffere sits adjacent to the prospective Rufisque, Sangomar and Sangomar Deep (RSSD) blocks, operated by Cairn Energy.
They contain the recent major SNE-1 and FAN-1 oil discoveries, in which FAR holds a 15% stake.
The western part of the Djiffere Block is located along geological trend with the shelf play types identified in the eastern part of the RSSD blocks.
"The potential of this shelf trend has been proven by the world class SNE-1 discovery, which was ranked by IHS CERA as the largest oil discovery
worldwide in 2014," says FAR.
FAR says it has identified multiple large prospects for drilling in the RSSD blocks along the shelf trend, totaling 765 MMbbl prospective unrisked oil resources in a variety of structural play types, including Buried Hill and Shelf Edge plays. FAR 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 MMbbl unrisked prospective resources. The Djiffere block, being in shallow water, is suitable for low cost drilling and near term development projects.
Under its agreements with Trace, FAR has the option to earn a 75% working interest in the Djiffere block by drilling an exploration well before 31 July 2018 (subject to Government approvals). The farmin option can be exercised by FAR at any time before 31 October 2016, by which time FAR expects a three-well shelf drilling program on its RSSD blocks will have completed.
Polarcus has been awarded 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 400sq km of 3D coverage and will evaluate the shelf trend potential within the Djiffere block. The survey will be completed
during this month 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 US$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 4459sq km offshore central Senegal. The block is in 10-250m water depth 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.
FAR retains a 15% working interest in the RSSD permits and Cairn Energy, ConocoPhillips and Petrosen (the Senegalese National Oil Company) hold 40%, 35% and 10% respectively.
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Image: The Polarcus Adira, currently working offshore Senegal. Image from Polarcus.
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