Apologies, I need to clarify on the different leases. SNE is actually in Sangomar Deep. This to be read in conjunction with previous post.
This is an excerpt from an earlier post of mine (17/1/17) where I expressed my view on expenditure issues concerning the 3 x Senegal leases:
"On expenditure.. as stated previously.. the appraisal costs on SNE will more than cover the expenditure requirement for the Sangomar Deep lease But Cairn is talking about: "finalising the selection of further optional exploration and appraisal wells to follow the two firm wells and ensure efficient evaluation of the full licence area."
Full licence area means 3 leases.. Sangomar Deep Offshore, Sangomar Offshore and Rufisque Offshore. As mentioned the JV has more than expended what is necessary to keep Sangomar Deep in tact. The FANs are part of Sangomar Deep, as is SNE.
On Sangomar offshore they conducted a comprehensive 3D seis over the entire Sangomar lease..not long ago.. not sure how much expenditure that required but much had already been spent spent on the Sangomar Lease for purposes of expenditure requirement and in order to keep it in tact. I suspect that a bit more needs to be spent on Sangomar but not sure what the requirement is... perhaps an "appraisal well".. see comment below. Then there is Rufisque... I suspect they will poke a hole.. on trend with the shelf discovery in order to meet expenditure requirements for the Rufisque lease. At a quess ( they are talking about minimum 2 optional holes ( referring to "wells")) so I think they will put another hole in the FAN's because upside will be enormous.
They talk about further "optional exploration and appraisal wells"...
Does a hole in the FAN's count as "appraisal" or "exploration"??.. Certainly, any well in Rufisque will be viewed as "exploration".. not sure about a hole into Beer??.
However, If SNE further extends into Sangomar Lease, then that well in Sangomar will be a "further appraisal well".
With the updated resource map, and the appearance of Spica ( overlapping into Rufisque) and the prospect in Rufisque, they'd have a coice to put an exploration well into that Spica overlap area which falls in Rufisque lease, or perhaps a hole in the new Rufusque prospect. It is very shallow though. According to contours, that prospect is in 50-100m depth.
AIMO
(20min delay)