Although the well will be abandoned, evidence was discovered supporting the potential for oil nearby.
FAR Ltd (ASX: FAR) has drilled the SAMO-1 well down to a total depth of 3,240 metres located offshore of The Gambia.
While well operations up to date have been conducted safely, efficiently, ahead of scheduled time and within the budget stipulated, wire line logs so far indicated that the main target horizons are water-bearing.
FAR remains optimistic as oil shows were encountered at several levels indicating that the area has access to an active hydrocarbon charge system.
Furthermore, as the first offshore well in 40 years and the first modern well, the data from SAMO-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.
FAR’s managing director Cath Norman said: “The result in the SAMO-1 well is not in line with our pre-drill expectations, however it is providing an abundance of new subsurface information that will help us to understand the geological play along the shelf edge- an area which remains grossly under explored.
“The FAR team has identified a portfolio of prospects and leads in the A2 and A5 permits and the data from SAMO-1 will be used to further mature and de-risk these for future drilling.
“Drilling the first well offshore of The Gambia for 40 years has drawn attention to this well and the result is a reminder of the risks we face in our business.”
Six Months Licence Extension Granted
The Government of The Gambia has confirmed a six-month extension to the current licence to the end of June, 2019; to allow for evaluation of the SAMO-1 well results.
Norman added: “We are pleased to receive a six-month extension to the licence, which will allow the JV to formulate and move on with plans to drill next year, after integrating the results from SAMO-1 into the regional geological model.”
In August, this year FAR sold a 40 per cent stake in its A2 and A5 offshore blocks to Petronas, in exchange for the Malaysian giant paying for 80 per cent of the SAMO-1 well and was about $25m.
Source- www.proactiveinvestors.coms