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

Senegal – Woodside – Buys into Acreage owned by Impact oil and Gas

Woodside Petroleum, Chariot’s Moroccan partner along with ENI,  has further expanded its exploration acreage in Africa with the acquisition of interests in waters off Senegal and Guinea-Bissau, signalling it is very much still in the market for smaller asset deals even as it turns its back on larger corporate …  “This builds on recent acquisitions in Cameroon, Gabon and Morocco [with Chariot ] and reflects our disciplined and strategic approach to studying regional petroleum systems,” … “the company would continue to seek exploration and deepwater petroleum assets that could come onto the market amid the slump in oil prices, but signalled a cooling toward larger corporate deals because of the uncertainty in the market outlook”

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

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

Conoco Philips to cut deep water exploration spending.

Conoco and Cairn had a great farm-in to the FAR acreage in Senegal. FAR is a ‘tiddler’ now with a  market capitalization of £152m. If Chariot had similar success in its Mauritania acreage (and it is still early days for FAR with more drills to come in Senegal) then Chariot could easily sit  at approximately 60p per share imo. Far have  stated they are looking for ‘Elephants’ as are we!

The good news from the announcement earlier this year is that the Conoco Phillips CEO is quoted as saying “We have achieved some notable success in our deep water program, particularly in the Gulf of Mexico Lower Tertiary play and offshore Senegal. We are committed to delivering the value we have created from these discoveries, while reducing the number of deep water exploratory prospects we drill in the future.”

This tells me that our Mauritania acreage – analogous so the Senegal acreage – has value. We have acreage in a great frontier region. Roll on the farm-out.

The FAR video mentions that rig rates have more than halved since last year.

Helios Chariot - Conoco Phillips Senegal

 

At 6:11 FAR gets a mention as an outperformer since its oil discovery in Senegal with Cairn and Conoco Phillips.