logo-loader
viewFAR Ltd

FAR Ltd begins engineering design work at SNE oil field offshore Senegal

The SNE oil field is estimated to contain 640 million barrels of 2C contingent resources.

Map of FAR prospects offshore Senegal
FAR aims to reach a final investment decision on the SNE oil field in 2019

FAR Limited (ASX:FAR) has begun front-end engineering design (FEED) activities for phase-one development of its SNE oil field offshore Senegal.

The FEED will aim to finalise budget, schedule and technical definition of the oil field’s development before a final investment decision is reached in 2019.

SNE is being developed through a joint venture agreement with FAR acting as operator and holding a 15% interest in the project.

 

FAR managing director Cath Norman said the start of FEED activities was a significant milestone for the joint venture’s development of the SNE field.

Norman said: “From discovery to entering FEED in a four-year period, especially given the general market conditions, is a substantial achievement for the joint venture.

“In addition to the commencement of FEED, the joint venture project financing has now commenced.

“It has been a successful 2018 for the SNE field development project and we look forward to working closely with the joint venture and Government of Senegal as we progress the final investment decision in 2019.”

READ: FAR Ltd completes major milestone for the SNE oil field

The SNE field is being developed in phases, with the first targeting an estimated 230 million barrels of oil resources from 11 producing wells, 10 water injectors and two gas injectors.

This phase will primarily target the lower, less complex reservoirs.

FAR expects its floating production storage and offloading (FPSO) vessel to have a capacity of around 90,000 barrels of oil per day in the first phase, with first oil targeted for 2022.

READ: Far Ltd remains upbeat after completing Samo-I well

FAR recently completed drilling the Samo-1 well offshore from The Gambia, encountering oil shows at several levels which indicate the area has access to an active hydrocarbon charge system.

As the first offshore well in 40 years and the first modern well, the data from Samo-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.

Although the well will be abandoned due to wireline logs indicating the main target horizons are water-bearing, the drilling has provided new subsurface information that will help the company understand the geological play along the shelf edge.

The Gambia’s government has confirmed a six-month extension to the current licence to allow for evaluation of the Samo-1 well results.

Quick facts: FAR Ltd

Price: 0.017 AUD

ASX:FAR
Market: ASX
Market Cap: $169.64 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of FAR Ltd named herein, including the promotion by the Company of FAR Ltd in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

FAR Ltd's Cath Norman calls US investors' response to its northwest Africa...

FAR Ltd (ASX: FAR) Managing Director Cath Norman visited the Proactive Investors' New York studio Thursday to update US investors on the company's assets in northwest Africa, saying the reaction from investors has been 'terrific.' Norman says the oil exploration company has drilled 11 oil...

on 03/14/2019

3 min read