Email response from FAR, page-17

I emailed my thanks to FAR and also asked a question that we have debated here: "Is the oil [predicted at SEN-1] expected to have migrated from the same source as the deep water fan structures (Central Canyon in SEN-1's case) or is it expected to be within the carbonates?" And the response was:

"Yes, the SNE-1 prospect is targeting a stacked play (2 main prospects) and we are relying on the oil and gas migrating from deep in the offshore up on to the shelf to charge these prospects. What is very encouraging is that at FAN-1 we saw a very thick column of oil (500m – not all of it was good quality reservoir, 29m so far) but what this tells us is that the source rocks are very prolific. Because we also saw oil in the upper fan section, it bodes well for our model of the oil migrating up onto the shelf. We will know very soon whether this model is working as we predict!"

Now that was good to hear. Once again they haven't said anything that we didn't already know (500m oil column, 29m pay so far, oil found in the upper fan section as announced in August) but the implications of FAN-1 results for SEN-1 prospectivity has been explained. There are multiple stacked plays (so more than the main 2) and FAN-1 has proven that the source rocks are prolific. The other point of great interest is that FAR indicated that we will know very soon if the model of migration is correct. I am hoping they meant soon in real time not geological time!! I guess we were all thinking they would hit the first target (Albian Sanstones) within a few weeks .. that's soon!

My interpretation is that what I said about SEN-1 the other day is close to the mark... source is proven by FAN-1, there are DHIs at SEN-1, and so reservoir quality and seal are the main risks. If SEN-1 seal is inadequate then as someone else said here that may make the Buried Hills prospects look good as they appear to be well sealed. It does sound like (as FAR has stated) SEN-1 and a number of other prospects have been significantly upgraded by FAN-1.

What do the geos and oil guys like Ya, kkw, and others think of the above?

H