Cairn have stated a few times that 200 Million barrels of recoverable oil is the threshold for an economic viable development. The Australian business reported (in October) that analysts stated that the FAN-1 oil discovery had 400 million barrels recoverable and possible upside to 800 million barrels. (there is no verification of this amount in the article but the reporter must have been quoted this by someone)
Far were certainly excited about the FAN-1 discovery as shown below as reported in the Australian. They certainly have kept things much tighter after SNE-1.
MELBOURNE-based junior FAR has cracked the big time after its trailblazing work off the west coast of Senegal has led to what its heavyweight partners have called a significant oil find with the drilling of the FAN-1 well.
Analysts said the results reported yesterday have increased confidence that the Cairn Energy-led joint venture has made a 400 million barrel (recoverable) oil find, with possible upside to 800 million barrels — comfortably eclipsing the 200 million barrel threshold for oil finds in West African waters to be economic.
FAR chief executive Cath Norman said she would be celebrating last night with a bottle of Veuve Clicquot, with a follow-up long lunch today at the fashionable eatery Cecconi’s with company staff and supporters.
Wilsde
FAR Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
