My reading of the situation is that success at Sotto reduces the risk of failure at Bogue because it would prove migration continuity between the Bogue and Sotto channels. It is also probably being drilled to calibrate the CSEM survey.
In combination with 3D seismic, CSEM is likely to be a successful tool in this area. However CSEM is less definitive if the dimensions of the accumulation are similar or less than the depth of the accumulation. Also, dependant on the orientation(s) of the CSEM survey, success at Bogue will help with risking the "smaller" accumulations.
On the Chinguetti development, I am intrigued about the excess gas storage at Banda. Any gas injection is likely to displace the Banda oil; perhaps Banda and Tevet are filled to spill and Woodside expect any displaced oil to migrate to Chinguetti. Or perhaps there is something that the JV is keeping close to their chests.
Cheers,
Oli
HDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
