Shell declines FAR's Senegalese licenses

First Australian Resources Ltd. (FAR) has lost Shell Exploration Co. BV as a potential partner to develop its blocks off Senegal after analyzing data from its geophysical evaluation program on several drilling prospects.

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 28 -- First Australian Resources Ltd. (FAR) has lost Shell Exploration Co. BV as a potential partner to develop its blocks off Senegal after analyzing data from its geophysical evaluation program on several drilling prospects.

FAR holds interest in the Sangomar, Rufisque, and Sangomar deepwater blocks, which span 7,491 sq km over the shelf, slope, and basin floor. All three blocks have multiple potential and untested plays in a proven hydrocarbon system.

FAR was awarded operatorship in January by Senegal state oil firm Petrosen (OGJ Online, Jan. 28, 2009). FAR will receive $3 million from Shell within 10 days and recoup about $500,000 for its past expenditures.

Shell will submit a technical report to FAR and Petrosen by Sept. 21, and FAR will continue to look for another partner while negotiating an extension to the license period, which expires on Nov. 22.

FAR said that 2,086-sq-km of 3D seismic data that were acquired during 2007 highlighted “multiple Santonian-age fan systems with stacked amplitude anomalies, and a very large Albian to Neocomian shelf-edge closure adjacent to a Turonian oil-source rock kitchen.”

FAR, with a 90% stake, operates the licenses, which lies in the Senegalese portion of the productive Mauritania-Senegal-Guinea Bissau basin. Petrosen holds 10%.

Contact Uchenna Izundu at uchennai@pennwell.com.

More in Home