Djiffere Dispute, page-62

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11/01/17

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Post #: 21832607
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Originally posted by Good Oil ↑

This is clearly (at best) a dispute..... and must be considered market sensitive.... DYOR

Trace Atlantic confirms Senegal exploration plan

British Virgin Islands junior to enter next exploration phase at highly prospective offshore Djiffere block
Barry Morgan Paris
23 Dec 2016 00:00 GMT Updated 23 Dec 2016 14:57 GMT

British Virgin Islands-based minnow Trace Atlantic Oil has declared its intent to enter the second exploration phase for Senegal’s offshore Djiffere block and drill before the recently extended deadline of the end of 2019.
Trace sent a letter to Senegal’s Ministry of Mines & Energy and state-owned oil company Petrosen regarding its intentions for Djiffere, which lies on-trend with Cairn Energy’s SNE-1 and FAN-1 oil discoveries on the neighbouring Rufisque acreage and is believed to be highly prospective.
According to a Trace executive, the Djiffere decree is expected by the end of next month because it does not have to involve Senegal’s new multi-ministerial super-committee, established by President Macky Sall to monitor and expedite upstream approvals.
Trace holds a 45.9% operating stake in Djiffere with 49% held by Sencap Energy, a 100% subsidiary of Cap Energy, and Petrosen on a 5.1% carry.
Australian junior Far Ltd has an option agreement with Trace to earn a 75% interest in Djiffere — subject to government approvals — and as part of this deal paid for Polarcus to shoot a 400 square-kilometre 3D seismic survey.
The original deadline for Far to deliver this seismic and exercise its farm-in expired on 31 October but Far claims it has upheld its part of the deal and should be granted an extension.
Upstream understands that miscommunication between Trace and Far has led to Cap Energy proclaiming it would seek alternative investors and that other farm-in suitors are welcome to discuss late entry.
However, Far managing director Cath Norman said earlier this month that final products from the 3D shoot are set to be available by the end of this year and her company expects to be ready to make a decision “to progress its Djiffere option in early 2017”.
Meanwhile, Cairn has contracted the drillship Stena DrillMax to sink the first of two appraisal wells on SNE in the first quarter of 2017.
It is understood that Far, which holds a 15% stake in the asset, will receive a Rufisque cash call of some $45 million in January to fund these activities with some market watchers queying the company’s ability to meet this demand.
However, Norman said this month that Far finished the September quarter “with a healthy cash balance of $50 million”.
ConocoPhillips has struck a deal to sell its 35% stake in the Rufisque licence to Woodside Energy, an agreement Far believes is subject to pre-emption rights.
Far believes a valid pre-emptive rights notice has not been issued to the Rufisque partners by ConocoPhillips so it has invoked a right to resolve this dispute in accordance with the joint operating agreement. However, ConocoPhillips said in late October it had completed its sale.

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goodoil who asked for and got the extension for phase two to be moved to 2019 which means the ministry had given there approval

FAR Price at posting: 7.9¢ Sentiment: Buy Disclosure: Held
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