Senegal – Mauritania – why does it matter?

I have been asked several times why I care about the worlds largest most recent Senegal oil discovery, or Kosmos world beating Gas discovery in Mauritania.

Ignore country boundaries – it’s rocks that matter! And Chariots acreage is ‘oily’!

From Cairn’s recent 1015 Annual report.

Helios Chariot - Cairn Energy Report - 2015

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

 

Kosmos – Oil exploration Success – again

Kosmos has announced that the Teranga-1 exploration well offshore Senegal has made a significant gas discovery. 5 wells out of 5 across Senegal and Mauritania. A 100% success rate. Work out the chances of that! Then consider that once the key is unlocked what that means for other acreage holders.

Kosmos are now planning further drills in the oiler Northern part of the oil and gas fairway which happens to be in Mauritania and nearer Chariots oilier acreage 🙂

AIM of course seems to forget these successes quite quickly. Meanwhile I continue to accumulate as no doubt do several other large shareholders.  Keep giving your shares away for way below their worth if you want… !

See you on the other side of the AIM casino 🙂

 

Chariot - Mauritania - Oil Map

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

Mauritania – Sterling Energy

Recorded prior to the Kosmos second discovery, and the recent Cairn Senegal appraisal well success.

“Mauritania is the most exciting, …..with Tullow as partner … up to two wells in the next 18 months starting middle of next year”

Also at 26:45

 

Mauritania – Kosmos – Success

Great article below;

http://www.epmag.com/forging-new-frontiers-kosmos-scores-again-offshore-mauritania-827386#p=full

Feeling much more confident of a Mauritania farm out now. Come on Chariot… give us a deal!!!

POLL (LSE)

 

Mauritania – Kosmos Find

The implications of this discovery by Kosmos cannot be underestimated:

1. Kosmos have not only discovered hydrocarbons, but clearly the source rocks are widespread. Having drilled two wells Kosmos have been able to determine that the source rocks are oil generating but at the discovery locations are buried so deep that they have generated huge volumes of gas. Kosmos have mapped the source rocks as being oil generating to the north, where chariots acreage lies.

2. Kosmos have now encountered and proven the reservoir fairways twice. Most importantly kosmos have declared to the world the seismic signatures that have identified hydrocarbon bearing reservoirs as having both seismic amplitude and seismic AVO signatures. This will massively de-risk acreage in Mauritania. My guess is that if a prospect with the same geology has these seismic attributes then the chance of success could be as high as 70% .

3. Chariots Mauritania prospects have similar geology to Kosmos further south , but in an oily area, as proven by oil shows in a well in chariots acreage.

I hope Larry is now getting the brokers and analysts to review this and issue new analysts reports AsAp.

The giant oil prospects in deep-water as still very economic at low oil prices, that’s why SHELL are concentrating on deep-water oil exploration.

It’s taken far longer than I expected, but I am now very confident of giant oil discoveries. It might still take another two years, but for those that are patient, load up as its not often you can buy shares below cash value that have this potential.

Jimmy

Mauritania – Kosmos – Marsouin-1 – Success

The second Mauritania well from Kosmos has once again been successful with an estimated 5Tcf gas find. The result was announced Thursday 12th November. The audio conference was quite telling for any company with acreage in Mauritania – the smallest of which is Chariot 🙂 and of course is looking for a Tier 2 farm-out (to drill).

The audio conference Helios Chariot - Microphonewas primarily a statement by Andy Inglis – CEO (and 30 years BP) , Brian Maxted Chief Explorations Officer (and co-founder of Kosmos) and a very useful Q&A – especially to those who wonder if Chariot will now have their data rooms full to the brim. The presentation is here.

Three messages came through from the CEO

  1. Marsouin-1 C8 – this is the second major hydrocarbon deep-water Mauritania success in 2015 with 70m net pay – 5Tcf. Kosmos stopped before TD as they had enough information but believe there was additional gas – another -2Tcf. The well cost $130m.
  2. There was once again excellent well to seismic calibration and this de-risks the resource basin – this was also a key message on the Tortue Gas Discovery.
  3. Kosmos will now continue to search for oil – and Northern Mauritania and Senegal are most likely to hold oil.

The AVO and Seismic Amplitude accurately predicted reservoir and hydrocarbon pay in both wells. This now allows Kosmos to link to other potential reservoirs and combinations. These first two wells are already the largest gas discoveries in the world this year with the potential for a world class LNG Project on the cards (think Qatar).

Geological data from both wells indicates significant potential for both oil and gas in the basin and to this end there will be 6 additional appraisal and exploration wells over the coming 18 months!

The search for oil in Mauritania is firmly on the cards and the chief exploration officer mentioned several times the  best chance to find it is in Northern Mauritania where same source rocks that charged the gas finds, are more likely to be charging oil. At this point I’ll say it out loud – OUR ACREAGE IS IN NORTHERN MAURITANIA where there are more oil prone fairways and oil shows in our acreage!

Looking at the Chariot October presentation we can now add another discovery to it. The chances of a farm-out have just increased. The chances of a successful drill have also increased. We are the ones with the oily Acreage :-). Its also interesting that Chevron farmed into drill 300 mmbbls and we have potential OIL elephants bigger than that.

Helios Chariot - Mauritania - Key Facts II