shell announcement, page-4

Shell gets busy off Senegal

By Upstream staff

First Australian Resources has sealed an agreement with Shell to carry out an exploration programme over three blocks off the West African country of Senegal.

The three blocks, which cover an area of 7491 square kilometres, are Sangomar Offshore, Rufisque Offshore and Sangomar Deep Offshore.

Shell will fund a controlled source electro magnetic (CSEM) data acquisition and geophysical evaluation programme over part of the licence area where a number of drilling prospects have already been identified by FAR.

The CSEM shoot is expected to start in the second quarter 2009.

The goal of the programme is designed to enable Shell to determine whether or not to exercise an option to buy a 70% interest in the block and enter the second renewal period that includes a well commitment.

Shell will have until 90 days after the survey boat leaves the survey area to decide whether to exercise the option. If Shell exercises the option, it will have 365 days prior to the end of the second renewal period to commit to drilling the exploration well.

If Shell does commit to drilling the exploration well, Shell must fund all costs of drilling up to a limit of $65 million.

FAR operates the licences on behalf of partner Senegal national oil company Petrosen.

Wednesday, 25 March, 2009, 07:43 GMT | last updated: Wednesday, 25 March, 2009, 07:45 GMT