mauritania drilling 2003, page-3

Mauritania (Fusion 6% in PSC B, 3% in PSC A)


Chinguetti (PSC B)


The results of the 2002 drilling on the Chinguetti Field confirmed the presence of oil across the whole structure in excellent quality reservoir sands with a net to gross ratio from all three wells in the range 25 to 40%. Production testing on Chinguetti-4-2 resulted in a flow of 1,560 barrels of oil per day constrained by sand influx. The restriction of flow by loose sand is a common problem in high-quality friable reservoirs and analysis of test results suggests that appropriately designed production wells will flow at significantly higher rates. The Chinguetti-4-4 well encountered a 114 metre oil column which included an additional 69 metres of oil below the lower limit predicted by the 3D seismic data.



It is anticipated that the joint Woodside/Agip Chinguetti Field development team will complete basic design and feasibility studies during Q2 2003, at which point the Joint Venture will meet to sanction the preparation of a field development plan. First oil production is projected for late 2005 or early 2006 at a peak rate of approximately 75,000 barrels of oil per day. Fusion’s current reserve estimates are in the range 100 to 150 million barrels.



Banda (mostly PSC A)


The 2002 Banda discovery well (Chinguetti-4-3) successfully tested a new play concept encountering a 110 metre gas column overlying a 23 metre oil column in excellent quality reservoir sands with a net to gross ratio in the region of 40%. Fusion’s preliminary estimate of potential reserves is in the region of 80 to 100 million barrels. Given the stratigraphic nature of the trap however the thickness and distribution of the oil column could vary within the accumulation and there is considerable scope for revision to these reserve estimates. Appraisal drilling on the Banda feature is anticipated during 2003.



2003 Work Programme



The PSC A and PSC B Joint Ventures have agreed to drill up to 5 wells during 2003. These include 2 firm exploration wells, 1 contingent exploration well and 2 contingent appraisal wells on the Banda discovery. It is expected that a decision regarding the Banda appraisal drilling will be made in Q2 2003 following completion of post-drilling technical studies.

Regards,
xmagx