Patients, page-35

Frumpy

The way this works is as under....

- They've shot 3Dseis in DJ blk using the Polarcus Adira.

- After they receive the processed 3D cube/data they'll look at identifying suitable structures, do the usual Inversion, suss out amplitude anomalies & DHI's that could indicate potential traprock & any indication of fluids.

- Once a structure is mapped out, say 20-100 sqkms areal feature, they can look at the time/depth slice to suss out possible th'kness, presence of any seals, faults, domal closures etc etc.

- Then, quantify any Prospective volume estimate with some risk factor attributed to it (ie CoS of 10 to 20%).

- Given the shallow water depths & assuming they can shortlist any targets (eg 120-300 mmbbls size) an Operator can opt to exercise their option (or not).

Note that shallow water projects r cheaper to develop, however HC's have to b identified via drilling & appraisal program first (after 3Dseis interp).

Once that's done they'll have a set timeframe to drill a well which they can do themselves or farmout for 1-2 well carry via 90% or full free carry plus reimbursement of 3dSeis expenses.

Alternately, they don't have to exercise their option if there's nothing major that the 3Dseis can identify, 'coz it becomes a challenge to showcase the findings in a dataroom to attract a farm-in partner.

FAR should know the process a lot more better now, as they got into Senegal in Jan 2006 with Hunt Oil & then were left without them when Hunt exited Senegal, b4 eventually getting Cairn onboard in 2013. Picture looks more rosy now, 5 wells later. More is known abt the sub-surface.  Dont know how AfrPetr were going with their farmout in neighbouring Gambia.