Licence Overview

In Senegal, African Petroleum Senegal Limited holds a 90% operated working interest in exploration blocks Rufisque Offshore Profond (“ROP”) and Senegal Offshore Sud Profond (“SOSP”) (together the “Senegal Licences”). The National Oil Company Petrosen, holds the remaining 10% equity. The Company’s Senegal Licences are located offshore southern and central Senegal, with a net acreage of 14,216km2

Licence Activity

As part of the initial licence entry, the Company purchased 10,000km2 of 2D seismic data over its Senegal Licences and compiled an extensive regional database. In addition, in May 2012, the Company completed a 3,600km2 3D seismic acquisition over the SOSP licence block. In the ROP block an existing seismic dataset (2007 vintage) covering 1,800km2 was purchased from Petrosen. This base dataset was reprocessed with the final product delivered in Q4 2014. 2D seismic data was also reprocessed to enable better regional well ties and geological understanding. Several large Cretaceous turbidite fan ‘leads’ have already been identified, these have been matured to prospects as the reprocessed data has been evaluated and included in the updated ERC Equipoise letter released in March 2015. The independently assessed leads and prospects estimates the net unrisked mean prospective oil resources at 1,779MMStb.

Recent Updates

During the last 18 months there have been five material discoveries in Senegal and Mauritania which provides a very positive context to African Petroleum’s presence offshore Senegal (and The Gambia):

  • October 2014: Cairn Energy with its joint venture partners announced that the FAN-1 exploration well, offshore Senegal, discovered 29m of net oil bearing reservoir in Cretaceous sandstones “which may have significant potential as a standalone discovery.”
  • November 2014: Cairn Energy announced that the SNE-1 exploration well, offshore Senegal, discovered 36m of net oil pay in excellent reservoir sands, and that “based on preliminary estimates is a commercial discovery”.
  • April 2015: Kosmos (60% Operator, with Chevron 30%) announced that their Tortue-1 exploration well, drilled on the Tortue West prospect that straddles the Mauritania/Senegal border, made a “significant, play-opening gas discovery” that “far exceeded” their pre-drill expectations.
  • November 2015: Kosmos (60% Operator, with Chevron 30%) announced that their Marsouin-1 exploration well, offshore Mauritania “made a significant, play extending discovery”.
  • January 2016: Kosmos (60% Operator, with Timis Corporation 30%) announced that their Guembeul-1 exploration well, offshore Senegal made a significant gas discovery.

Following on from the above drilling success, Cairn Energy commenced a drilling campaign to appraise the SNE discovery in December 2015 with the first two appraisal wells SNE-2 and SNE-3 being announced as successful in January 2016 and March 2016 respectively.

Kosmos Energy announced in March 2016 that their Ahmeyim-2 appraisal well in Mauritania was a success.

Importantly, all five discovery wells and three appraisal wells are consistent with African Petroleum’s regional charge model.

African Petroleum will monitor the results of the above drilling programmes closely as they will help us develop a deeper understanding of the geology of our own acreage which in turn will significantly de-risk our future activity on the blocks. Furthermore, as a result of the above recent material discoveries and the ongoing drilling activity offshore Senegal, the Company is seeing a heightened interest in the farm-out process for this exciting part of African Petroleum’s portfolio.

Senegal: ROP and SOSP

Net Acreage 14,216km2

·       90% working interest in exploration blocks Rufisque Offshore Profond and Senegal Offshore Sud Profond

·       Extensive seismic data acquired over both blocks

·       Third party discoveries in adjacent acreage during 2014

·       Appraisal wells by third parties offshore Senegal during 2015

·       Extensive regional database is constantly being upgraded

·       Independently assessed net unrisked mean prospective oil resources of 1,779MMStb