Dale Granger, Oil and Gas Investor Australia
Friday, May 1, 2015 - 9:00am
The champagne corks were popping at FAR Ltd. as the Melbourne-based junior oil and gas explorer, in partnership with ConocoPhillips and Cairn Energy Ltd., toasted the first discovery offshore Senegal in 20 years.
The Cairn Energy-led joint venture announced a 400 MMbbl oil find from the Cajun Expresssemisubmersible as well as a potential upside of 800 MMbbl at the FAN-1 well. Within a month, it announced a second discovery at the nearby SNE-1 well, where similarly high-quality 32˚API oil was recovered to surface.
Praise may be premature considering that the proof of production is in flow testing. However, preliminary estimates at SNE-1 range from 150 MMbbl to 670 MMbbl (with 15% net going to FAR), stimulating a similarly buoyant mood to the earlier success.
Three years after taking the reins at FAR, a company hitherto treading water, Cath Norman had the satisfaction of seeing its stock soar more than 300% on the back of the Senegal discoveries. More importantly, the company’s peers, and the industry at large, have stood and taken notice of a potential fairy tale in the making.
Norman shared insights of the company with Hart Energy’s Oil and Gas Investor Australia.
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