Cairn, FAR, Conoco – another home run in Senegal – 100% success rate

Just like Kosmos, the Cairn, FAR, Conoco partnership in Senegal has once again had success with the SNE-4 drill – A 100% Success rate! Add this to the 100%  Kosmos /Chevron success and it would appear that Mauritania/Senegal is about to become a highly commercial and prolific Oil and Gas producer. Chariot’s Mauritania acreage is in the oilier North so I am particularly looking forward to the farm-out. Cairn farmed into the Mauritania acreage for $26 million   in 2013 with a subsequent  license extension  which allowed for further analysis such as seabed coring (always a good sign) which has now completed. It’s time to get the statisticians on the case ….. but the chances for Chariot’s Mauritania acreage to hold oil which sits in the same oil fairway, further North, surrounded by oil shows, and ‘oilier’ look very promising indeed. Kosmos have stated they are heading into their Northern Mauritania acreage where they believe the chances of finding oil are much higher.  We are elephant hunting!Helios Chariot - Mauritania - May 2016 - 2

Helios Chariot - Mauritania - May 2016

Helios Chariot - Probability of Successive Oil Well Exploration Success

 

Senegal – SNE-4

18th April:

Cairn Energy has spudded the fourth exploration well in the current evaluation program offshore Senegal.

According to joint venture partner, FAR Ltd, the SNE-4 well was drilled using the Ocean Rig Athena drillship. The appraisal well in the SNE field will help in moving ahead to confirm the commercial capability of the field.

Situated 5km south-east of the SNE-1 discovery well, the well was drilled to evaluate the eastern level of the field and to confirm the nature of the upper reservoirs in the oil zone.

The SNE-4 well which is located in 940m water depth, is to be drilled to a total depth of 3,020m. Drilled and logged the well is estimated to be completed in about four weeks.

FAR had raised $60 million last week to finance the exploration and appraisal of the offshore Senegalese permit. The company had said that the funds will grant it enough capital to meet all its obligations for the next phase of evaluation which might include an extra two contingent wells, Offshore Energy Today reports.

We should therefore see an announcement on the result around 16th May.

 

Senegal – FAR/Cairn – More success

More success – here –  and another well to start in a few days!
It’s important because Chariot acreage is in the same fairway .. but oilier..

Mauritania and Senegal – Success and Share Price

Kosmos now have a 100% success rate in Mauritania. Cairn, despite the India tax situation is looking very strong in price action – it seems to be a classic example of bad news, positive price action pointing to something more interesting. FAR – a ‘tiddler’ now has a very high market capitalization and you have to wonder what it would be with a higher oil price. Chariot now seems to be  moving in the right direction. Buying in the 4’s and fives and upwards is the way to go for me. Latest share price – January to March 18th below – looks like Chariot is about to cross the 200dma and is now above the 20dma.

Helios Chariot - Kosmos - January - 18th March 2016

Kosmos Share Price

Cairn Energy Share Price

Cairn Energy Share Price

Far Ltd Share Price

Far Ltd Share Price

Chariot Oil & Gas Share Price

Chariot Oil & Gas Share Price

Cairn Energy – Senegal Drill Campaign -3 new drills

Following on from the recent world class elephant size commercial oil discoveries in Senegal the partnership has announced 3 more wells and a rig contract which will start the drill bit turning  in a few weeks time. This is important for several reasons

  1. The Senegal acreage is similar to Chariots Mauritania Acreage
  2. The Mauritania acreage has read through from the Senegal acreage  which is being drilled by Chariots Mauritania Partner – Cairn
  3. It looks economic to drill even at $49 current price for Brent.

See here – http://www.oilvoice.com/n/FAR-Ltd-executes-Ocean-Rig-Athena-drilling-contracts-for-offshore-Senegal/f2f53f8945de.aspx