FAR Ltd. recently completed detailed geotechnical studies and assessed significant hydrocarbon resource potential in its Guinea Bissau 3 blocks offshore, Sinapa Block 2 and Esperanca Block s 4 A /5 A in West Africa. (FAR: 21.43% paying interest, 15% participating interest). FAR’s hydrocarbon resources assessment is unaudited.
The existing East Sinapa oil discovery is estimated to contain Contingent Resources of 13.4 million barrels of oil (unrisked, 2C, 100% basis), with 2.0 net to FAR. East Sinapa is also estimated to contain prospective resources of 7.5MMbbl/o (unrisked, best estimate , 100% basis) with 1.1 million net to FAR. The Sinapa - 2 discovery well drilled by Premier in 2004 encountered 124m of gross oil column with further oil encountered up-dip by a side track well.
The West Sinapa prospect which is expected to be drilled by the joint venture in late 2014 is estimated to contain Prospective Resources of 64.7MMbbl/o (unrisked, best estimate, 100% basis) with 9.7million net to FAR. The prospect is assessed to have significant upside with 251.7 million barrels of oil (unrisked, high estimate, 100% basis) and 37.8Mbbl net to FAR.
A further 14 prospects and leads have been identified in the permits. The total combined prospective Resources for the 3 b locks are estimated to contain 954MMbbl/o (unrisked, best estimates, 100% basis) with 143 million net to FAR. An immediate follow up well is planned in 2014 in the event of success on the West Sinapa well.
“The two existing discoveries in the permits provide clear evidence of a functioning hydrocarbon system thus the chance of exploration success in our first well in the permits, planned for late 2014, is relatively high,” Catherine Norman, FAR managing director said. “With the permits being located in benign shallow waters, the costs of exploration and development are commercially attractive. Our Guinea - Bissau permits are an emerging strong component of our diversified African exploration portfolio and have the potential to add significant value for our shareholders.”