FAR Limited (FAR) has entered into a farm-in option agreement with a subsidiary of Trace Atlantic Oil (Trace) for the Djiffere block offshore Senegal
Under the agreement with Trace, FAR has the option to earn a 75 per cent working interest in the Djiffere block by drilling an exploration well before 31 July 2018, subject to regulatory approvals. The farm-in option can be exercised by FAR at any time before 31 October 2016, by which time FAR expects to have completed the firm three well shelf drilling program in its Rufisque, Sangomar and Sangomar Deep (RSSD) blocks.
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 400 sqkm of 3D coverage and will evaluate the shelf trend potential within the Djiffere block. FAR estimates that its 3D survey in Djiffere will cost US$1.1mn.
FAR has 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 100mn barrels of unrisked prospective resources. The Djiffere block, being in shallow water, is suitable for low cost drilling and near term development projects.
Cath Norman, FAR’s managing director, 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 per cent equity position in Djiffere, FAR is well positioned to build its acreage position in this highly prospective emerging petroleum province.”