Hmm, not sure CNOOC would touch it... well done to the Swedes for persistence, but even they variously describe the prospects and politics as 'hairy'..imo
Now all this has to be paid for of course.... good to see some realism in posters regarding the sale of SNE to fund exploration (and get the huge monkey off FARs back)..imo
GUINEA-BISSAU – Exploration Targets Identified
The 2016 evaluations of Svenska’s assets in Guinea-Bissau identified two viable exploration targets in the deep-water western part of the licensed area: the Atum and Anchova prospects.
Activity in Guinea-Bissau was hampered by the fact that a decision to grant Svenska an extension to the current licence period was delayed. To have enough time to prepare for and execute exploration drilling, Svenska has applied for a three-year extension to the licence period, stretching from November 2017 until November 2020.
SNEGAL DISCOVERIES FUELLED INTEREST
Svenska’s activities in Guinea-Bissau reached a new phase following the significant oil discoveries made by Cairn in Senegal, some 220 kilometres due north of Svenska’s licences. Two oil and gas discovery wells were drilled there in 2014. Three appraisal wells have since been drilled on the SNE discovery, which is located in fairly deep waters on the Senegal shelf margin. This discovery has significantly increased the interest in Svenska’s acreage and in Guinea-Bissau in general. The geological setting in the western
part of Svenska’s blocks in Guinea-Bissau is similar to that of the SNE discovery in Senegal.
NEW SEISMIC SURVEY
“We saw the similarities back in late 2014 and decided to acquire a 3D seismic survey to cover the western part of our blocks,” says Torgny Berglund, Vice President responsible for exploration. “The acquisition was completed in late February 2015. The processing was taken through pre-stack depth-migration, which took most of 2015. The new seismic data was merged with the old data and it confirmed the presence of a large structural high extending through the blocks where we have our two main prospects.”
EXTENSION IF LICENCE PERIOD
The previous licence period in Guinea-Bissau expired in November 2015. Svenska had already applied for a two-year extension in 2014. Confirmation of a new licence period ending November 2017 was received in August 2016, meaning that a large part of the new licence period was spent waiting for the decision. Svenska then applied for yet another extension, this time for three years. If approved, it will stretch into November 2020.
TWO VIABLE EXPLORATION TARGETS
“In the summer of 2016 we completed the latest technical and economic evaluations. The conclusion was that we have two viable exploration targets in the deep waters of the western part of the licensed area, the Atum and Anchova prospects.” Additional technical studies have since been initiated to further de-risk the prospects. If further evaluations reinforce the results, and if we receive a positive decision on the application for an extended licence period, it will be possible to make a drilling decision. Actual drilling could commence earliest in the third quarter of 2018.
OPERATED BY SVENSKA
Svenska farmed into the Guinea-Bissau licences in 2007. When the previous operator, Premier Oil, decided to withdraw from the licences, Svenska assumed the operator’s role with increased equity. The operator’s role involves responsibility for licence management, drilling activities and other technical work, as well as continuous liaison with the Guinea-Bissau authorities.
Despite the unstable political situation, long-term Swedish support for this country has facilitated Svenska’s discussions with the authorities. The present, as well as previous, the government has shown serious commitment to this project.
DYOR
FAR Price at posting:
8.5¢ Sentiment: Sell Disclosure: Not Held
(20min delay)