Disco don't throw out those dancing shoes just yet.Rumour had it...

Disco don't throw out those dancing shoes just yet.

Rumour had it AP were after FAR's Senegal blocks last year when FAR's Senegal license ran out - for obvious reasons now (500 mill boe Gambia Target overlaps into FAR's Senegal block).

I'm sure most of us know about FAR's Senegal's 1 bill Boe Giant Buried Hill target, the 500 mill boe Southern fan play and 2 other multi mill northern fan plays but how may other blocks could unexpectantly throw up another 500 mill boe target that overlaps by 20% into their blocks. I recall reading ME saying at the time he was not concerned about the reduction in FAR's Senegal acerage, when Hunt handed over the 90% stake to FAR, as FAR retained the best of it.

Now if we take ME at his word that FAR have fulfilled all obligations to hold their Senegal Licenses than AP if they want a stake in FAR's blocks would need to come to the negotiation table. Investors would like to have the security of the Decree to support ME's claims that everything is OK. When/if? the Decree comes through then it should be game back on. IMO the Decree will come.

Easy solution for working costs out on the GAMBIA well would be AP free carries FAR for 15% to 20% stake in Gambia drill (If they do decided to drill that overlapping target and FAR give AP 30% of their Senegal stake which would reflect following partnership if Ophir take up the option.

Senegal (Possible JV group with Gambia deal))

AP 30%
Ophir 25%
Petrosen 10%
FAR 35% (ability to farm down further if Req'd)

If Ophir opt out of Senegal then AP may have a higher stake and maybe Noble opt in for a 25% stake.

Anyway ME is good at putting a deal together even though he has trouble finding oil and making announcements. Every dog has its day though and only time will tell.

Thoughts welcome.

POO is the key and I would like to see it maintain current levels or move back towards that $100 level during this latest down turm. After saying that though it's not rocket science that by the time any discoveries were producing, oil will be well above $100 p/b and current POO has no bearing on Oil Companies exploration plans.

I also hear your positive thoughts on Ophir taking up the option Ben32, as they now have a cheap entry into Senegal and Senegal does have 1 bill targets ready to drill supported by state of the art 3D siesmic. These targets can be drilled 2012 and I'm sure after floating to the UK exchange Ophir would like to have a high impact discovery. That Giant Buried Hill Target was Hunt Oil's main target and it offers Ophir this chance without waiting several years of lead time from conducting siesmic, assessing data and then drilling.

IMO there is the same incentive there for Noble now they have dipped their toes in the Senegal waters. Easy shipping across the altantic back to the good ol USA.

PDYOR