As there's not much news on Hardman today I thought I'd just post this from Fusions web site.Fusion Announces Deepwater Drilling Programme for Mauritania
Fusion Oil & Gas plc (" Fusion" or "the Company")
Fusion Releases Update to 2003 Activity Profile -
Fusion is pleased to provide an update on its operational program for 2003, including details of the imminent drilling programme in Mauritania. In certain instances the plans are subject
to normal operational considerations and government/ joint venture approvals.
Mauritania -PSC A and PSC B
Following several meetings between the Mauritanian Joint Venture partners for PSC A and PSC B, agreement has now been reached on the likely scope and timing of the exploration
and appraisal/ development programme for 2003. In summary, the parties have agreed to drill two firm wells in the 2003 drilling campaign. A third well will be proposed in PSC B
following completion of studies on a number of prospects under consideration.
The first well in the campaign will be an early development/ appraisal well on the Chinguetti discovery. An extended production test of this well is planned and following completion of
testing it is anticipated that the well will be suspended pending commissioning of production facilities in late 2005. The second well is expected to be an exploratory test of the Tiof
prospect in 1,130 metres of water approximately 25 km to the north of the Chinguetii discovery. A number of other prospects are being considered for a further exploratory test
and a decision on whether to drill, and the preferred prospect will be made following completion of the Chinguetti development/ appraisal well.Woodside, as Operator of the PSC B Joint Venture, has signed a letter of intent with Smedvig Offshore AS for the drillship West Navigator to undertake drilling operations. Drilling of the
first well is expected to commence during August.
As previously announced on 28 May 2003, the Company has entered into an agreement with Premier Oil plc regarding its interests in Mauritania. Subject to fulfilment of certain
conditions, Fusion will receive cash payments linked to all future production from PSC A and PSC B in addition to cash payments on approval of all future field development plans for
additional discoveries with reserves in excess of 50 million barrels.
The Gambia -Deepwater PPL
Following the announcement made on 17 January 2003 and the interim results statement on 25 March 2003 on the decision to withdraw from The Gambia, Fusion now announces the
satisfactory termination of its agreement with The Republic of The Gambia regarding a deepwater Petroleum Production License.
The parties have resolved all legal issues on agreeable terms.
AGC (Senegal/ Guinea Bissau) – Dome Flore
A 380 sq km 3D seismic survey over the Dome Flore and Dome Gea oil accumulations was acquired earlier in the year and is currently being processed. Preliminary processing results
are encouraging and delivery of the final volume is anticipated in September 2003. The 1
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Dome Flore and Dome Gea accumulations are considered to contain in excess of 500 million barrels of heavy oil-in-place in shallow reservoirs, however the reserves are thought to be un-economic
based on development scenarios using conventional production technology at current oil prices. The latest 3D survey, however, is designed to image deeper reservoirs,
where previous drilling had encountered indications of better quality oil that, if trapped in sufficient quantity, should be easier to develop.AGC (Senegal/ Guinea Bissau) – Croix du Sud
Under the terms of a farmin agreement announced on 4 September 2002 Amerada Hess has funded the acquisition of a 1,530 sq km 3D seismic survey. The final data volume was
received in June 2003 and evaluation is underway. Amerada Hess will elect whether or not to proceed with the drilling phase of the farmin deal by October 2003.AGC (Senegal/ Guinea Bissau) – Cheval Marin
Interpretation of the 2,400 sq km 3D seismic survey acquired during 2002 is at an advanced stage. A number of prospective features have been high-graded for detailed study in advance
of the end of the year, when the Joint Venture will decide whether or not to enter the second exploration period that carries a one well drilling commitment.Cameroon – Ntem
Under the terms of a farmin agreement announced on 4 September 2002 Amerada Hess has funded the acquisition of a 1,550 sq km 3D seismic survey. The final data volume was
received in July 2003 and evaluation is underway. Amerada Hess will elect whether or not to proceed with the drilling phase of the farmin deal by November 2003.Gabon -Iris Marin and Themis Marin
3D seismic surveys covering a total area of 625 sq km have recently been acquired in the Iris and Themis Marin licenses. The surveys have been specifically designed to use the latest
processing technology to image reservoirs beneath complex geology involving salt that had been a barrier to previous surveys. Similar seismic techniques to those being employed by
Fusion have recently been applied successfully in adjacent permits in southern Gabon. Evaluation of the preliminary data volumes is underway. A fast-track evaluation strategy is
being employed to enable the Joint Venture to mature drilling locations by early 2004.
Under the terms of the agreement with Premier announced on 28 May 2003 Fusion will reduce its interest in the permits from 38.57% to 20.57% in exchange for being carried
through 18% of the cost of the first two wells in each license. During the earning period Fusion will have a paying interest of 2.57%.SADR – Western Sahara Technical Co-operation Agreement
The studies required under the Western Sahara Technical Co-operation Agreement with the Saharawi Arab Democratic Republic (SADR) are near completion. A final report will be
delivered during August 2003. Completion of the technical studies will enable Fusion to lodge applications for up to three exploration licenses each of up to 20,000 sq km.The sovereignty of the territory of Western Sahara is subject to a long-standing dispute between the indigenous Saharawi people, represented by the Polisario, and the Kingdom of Morocco. The licences applied for by Fusion will be ratified following admission of the SADR to the United Nations.
Guinea Bissau – Sinapa and Esperanca
Fusion has an option to acquire a 5% working interest in the Sinapa and Esperanca offshore concessions operated by Premier Oil plc, at no cost to Fusion, within 60 days of the
completion of the next exploration well on each licence. Should Fusion elect to exercise this option, the Company will pay its pro rata share of costs from the date the option is exercised.It is expected that Premier will drill at least one well in Guinea Bissau during 2004.
Fusion's Managing Director, Dr Alan Stein, commented:
"We are pleased to advise of continued progress across all of the Company's projects. The 2003 drilling programme in Mauritania has the potential to realise significant value for the
Company without any requirement for additional funding. Elsewhere in the portfolio, the 3D surveys currently being evaluated should provide the basis for an exciting future drilling
programme. Subject to various partner/ Government approvals, Fusion's forward drilling programme to the end of 2005 could now include direct and indirect involvement in
potentially more than 15 wells, with the majority of these being funded by farmout agreements. Following drilling activity in Mauritania during the remainder of 2003 at least
one well in Guinea Bissau and two wells in Gabon are anticipated early in 2004."
July 29 th , 2003
For further details please refer to the company's web page www. fusionoil. com. au or contact:Web site for PDF....
http://www.fusionoil.com.au/uploads/news/Fusion%20Activity%202003%20Update%2029.7.3.pdf
