there is potential for major discovery

GSJBW on Woodside

Announcement Summary:


Woodside has gained approval from Mauritanian government for planned exploration activities on two onshore Taoudeni Basin blocks (Ta11 and Ta12, eastern Mauritania and Mali border).


2007 planned spend is US$4.9m (WPL to fund 100% of exploration program; WPL own 75%, Baraka Petroleum own 25%) and will consist of airborne magnetics, gravity surveys and geological studies. This is in addition to a recent 3D thermal modelling study, which showed encouraging preliminary results.


Taoudeni Basin prospectivity is based on presence of good quality source rocks of Silurian and Infracambrian age (has been compared to similar geology in the prolific Algerian oil and gas producing Illizi Basin). It is an extremely large area (~69,000sqkm), and hence if workable petroleum systems are shown, there is potential for major discovery.


GSJBW comment:


1. This is a key step forward (WPL have had disputes with Mauritanian government in the past), however the evaluation of this basin is still at a very early stage.


2. Taoudeni Basin exploration is frontier and represents a high risk, high reward opportunity.