Ann: Senegal Drilling Update - Successful SNE-4 appraisal well-FAR.AX, page-60

HM,

That's the million dollar question, ie DoC & then straight to exploitation phase or do we just wait & drill elsewhere on the blocks.  

Cairn should have a presentation in June as per 2015, so look fwd to that & then their side of the story at their 16th Aug HY results conference call.

Cairn's MEFS criteria was 1C-200 which they currently are sitting on after SNE#1 & 2. This doesnt include SNE-3, BEL#1 & SNE-4, so no wonder they've called time out.

They'll have to look very closely at their recent 3Dseis & check the southern extent & also to the north of BEL for future drill locations. Their 'Exploitation' terms are 25 years firm, plus 10 yrs extension with 75% cost recovery, no royalties, 25% tax, small amount as signing bonus & Profit share.

SNE is a layercake scenario with low relief. Frankly I wasn't expecting a 100m gross oil column, more like 60'ish given the 'dip to the south' so am surprised as would the JV. Hope there r no major faults cutting thro' this layercake.

I still want to know the 'net to gross' ratio out of the avg 100m gross from 5 wells they've discovered. Would 25-30m-36 net b consistent on the last 4 wells, post SNE1 ? I guess will have to wait for the lab results on the cored samples & revised 2C estimates.

Is 7 years too late for Senegal ?? Sad that FAR got dicked around by Shell with the CSEM back in 2009, would have been a different story, http://www.asx.com.au/asxpdf/20090824/pdf/31k7yz1cx6hk8c.pdf

I'm expecting profit taking tomorrow, as is the norm for month of May.