Senegal Drilling Update: SNE-2 delivers a successful appraisal...

Senegal Drilling Update: SNE-2 delivers a successful appraisal well
The SNE-2 appraisal well has completed drilling and evaluation and has delivered a positive result after being safely drilled, cored, logged and flow tested ahead of schedule.
Oil flows from drill stem testing (DST) are important in demonstrating SNE is a world class oil discovery with the ability to flow oil at commercially viable rates:
 A DST of the lower reservoir unit flowed oil at a constrained rate of 8,000 bopd (stabilised) confirming high primary reservoir deliverability
 A DST of the upper "heterolithic" reservoir unit flowed oil at a maximum rate of ~1,000 bopd (unstable), highlighting the potential for these upper units to make a material contribution to SNE resource and production volumes
New SNE-2 data, plus analysis of new and reprocessed seismic and well data, and further appraisal activity is expected to lead to a future revision of the SNE field resource estimates.
Preliminary results from SNE-2:

•   A drill stem test (DST) of a lower principal oil reservoir unit over a 12m interval (~11.5m net) flowed oil at a maximum stabilised constrained rate of ~8,000 bopd on a 48/64” choke. The interpreted unconstrained flow rate of this interval is greater than the testing equipment capacity of 10,000 bopd. This result confirms the high deliverability of the principal SNE reservoir units.
•   A DST of a shallower “heterolithic” reservoir unit over a 15m interval (~3.5m net) flowed oil at a maximum rate of ~1,000 bopd on a 24/64” choke. The flow from this interval was unstable due to the 4.5” DST tubing, however, this result confirms the potential of the “heterolithic” reservoir units to produce at viable rates and make a material contribution to SNE oil resource and production volumes.
•   SNE-2 appears to have the same high quality 32 degree API oil seen in SNE-1.
•   Gas-Oil and Oil-Water depths have been confirmed, showing a similar oil-down-to and oil–up-to
  depth at SNE-2 of 103m gross (SNE-1 is 96m gross).
•   SNE-2 has confirmed the correlation of the principal reservoir units between SNE-1 and SNE-2 and the potential for lateral reservoir continuity.
•   A total of 216m of continuous core (100% recovery) was recovered across the entire SNE field reservoir interval.
  The SNE-2 appraisal well is now being plugged and abandoned and the Ocean Rig Athena will then move 6km south to drill the SNE-3 appraisal well to evaluate the SNE oil field reservoir quality and continuity at a more southerly location.
  SNE-2 is the first appraisal well in a three-well, back-to-back drilling program designed to comprehensively evaluate the SNE oil field from the drilling of the SNE-2 and SNE-3 appraisal wells and Bellatrix exploration well.
  SNE-2 is located 3km north of the SNE-1 oil field discovery well and it has been drilled in 1,200m of water approximately 100km offshore Senegal in the Sangomar Offshore block.

* Refer to Cautionary Statement in this report (Page 4) relating to estimates of prospective resources
FAR Managing Director Cath Norman said;
“The excellent results from the SNE-2 appraisal well have confirmed the SNE oil field reservoir quality and are important in demonstrating the ability of the SNE reservoirs to flow oil at commercially viable rates.
This positive result has also helped confirm the overall scale and extent of the resource base and it is expected to support a future revision of the SNE resource estimates.
This also provides further evidence of the substantial potential of FAR’s extensive exploration acreage position offshore Senegal.
Overall, SNE-2 has provided FAR with significant confidence that SNE has potential to become a major, world-class, oil field development.
SNE-2 has been drilled, cored, logged and tested ahead of schedule and we are now looking forward to the results from SNE-3.”