Detailed analysis of 3D seismic data in Block 1, offshore Southern Mauritania, has resulted in the emergence of two exciting prospects, Faucon and Petrel, each with moderate risk and the potential to contain over one billion barrels of oil in place. Recognising the enormous potential of these prospects, Dana elected to increase its interest to 60% in Block 1, by acquiring a further 12% interest from Tullow, ahead of drilling the first of these structures in 2005.
Given the importance and materiality of this first well in Block 1, the Company has decided to maximise its chances of success by carrying out a controlled source electromagnetic imaging (‘CSEMI’) survey over these two main prospects ahead of selecting the first prospect to drill. CSEMI is a rapidly emerging seabed survey technology which aims to predict the presence of hydrocarbon in prospective reservoirs ahead of drilling. Following acquisition the CSEMI data will be integrated with 3D seismic data to select the prospect with the best possible chance of success as the first to be drilled. In order to properly take account of the results of this survey, the Company has rescheduled the drilling of the next Block 1 well into the second half of 2005 and has reached agreement with neighbouring operator, Woodside, to be assigned the ‘Stena Tay’ dynamically positioned drillship on this basis.
HDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
