steve rates first wells a one in-five-chance

Not sure if it's been posted before.
http://www.the-report.net/features-archive/41-%3E%20Seychelles/252-energy-g-the-case-for-public-interest

Few so large

Australian exploration company WHL Energy has independent confirmation of the potential to produce 3.5bn barrels of oil from its licenced area. The largest prospect has the potential for over 1bn barrels, surpassing the production capacity of most oil fields worldwide.

The government stands to receive a total royalty and corporate tax income of approximately £18bn from that one find over the next 30 years. As returns from any project increase, the government is able to levy additional taxes.

“But there are no guarantees – this is a high cost, high risk business, where there is an average one-in-five chance of the first wells being successful,” cautions WHL managing director Steve Noske.

He expects Seychelles “to share in the early benefits of developing and building the oil facilities through employment and procurement of materials and services, but the real material revenues begin to flow to the government once production commences.”

UK-based Afren and Isle of Man-registered partner Avana Petroleum report “numerous large leads” that may produce 240m barrels. Their first exploratory drilling will take place before the summer and at two WHL sites in mid-2013.

So far, oil exploration has been minimal, but this year the government will auction further sectors.



Tom