(JollofNews) – FAR Ltd, an Australian Securities Exchange listed oil and gas company has entered into a definitive farm-out agreement to acquire an 80 per cent interest and operatorship of Erin Energy Corporation’s offshore A2 and A5 blocks in the Gambia.
As part of the deal announced on Monday, Erin Energy will retain a 20 per cent working interest in both blocks.
According to online magazine Offshore Engineer, under the terms of the farmout agreement, which is subject to approval by the Gambian Government, upon closing of the transaction, FAR will pay Erin Energy a purchase price of US$5.18 million and will carry US$8 million of Erin Energy’s share of costs in a planned exploration well to be drilled in late 2018. In addition, if Erin Energy’s share of the exploration well is less than US$8 million, the balance is to be paid in cash to Erin Energy.
The A2 and A5 blocks cover an area of approximately 2683sq km (663,000 acres) within the emerging and prolific Mauritania-Senegal-Guinea-Bissau Basin and lie approximately 30km offshore in water depths of 50-1200m (164-3900ft).
Blocks A2 and A5 are adjacent and on trend with FAR’s 2014 SNE-1 oil field discovery, which was the industry’s largest offshore oil discovery that year, says Erin Energy. Since the drilling of the SNE-1 well, FAR has drilled five successful appraisal wells on the SNE field and increased the field’s best case 2C contingent recoverable oil resource to 641 MMbbl on a 100 per cent basis, according to FAR internal estimates.
In 2017, Erin Energy and FAR plan to undertake reprocessing and interpretation of 3D seismic data recently acquired by Erin Energy to further mature identified prospects on Blocks A2 and A5. Erin Energy acquired 1504sq km of modern 3-D seismic data and has identified prospects on the blocks, which are similar to the “shelf edge” play FAR is targeting in its offshore Senegal blocks.
“This partnership will allow us to keep a significant stake in these highly-prospective blocks with no additional capital investment required through the first exploration well, while also strengthening the balance sheet and allowing us the ability to consider additional growth opportunities. This farmout highlights our strategy of maximizing our exploration breadth while minimizing exploration risk,” says Jean-Michel Malek, Erin Energy interim CEO.
All that glitters is not gold. Gambia should carefully watch it’s steps at this crucial point in time.
The information in the offshore oil prospective(the Gambia a second party? a third party? first?) seems discernable only by the geologists. Can some one break it down to a peasant’s level.
What is it really about to happen to the big fresh smile of the coast? What is at stake for the Gambia in this ‘up for grabs’.
Greenpeace ahoy!
I agree with Bourne,”All that glitters is not gold”
There trading shares and interest;
Its long term speculation in an oil shelf said to run all the way up the West Coast from Ghana to Senegal. The assets are just into Ghana and may come around Gambia Senegal in the distant future;
Two problems;
1 The 10% tax imposed by Jammeh;
2 The quality and quantity;
You would need interest from one of the big oil producers///exon/chevron/ or better still Shell or BP.
Then you can get exited;
Only there is an abundance of oil, so much that production has been cut back to try to force the price up///so far with only modest results.
Fracking is the new kid on the block. Amazing results in the US and more to come in Europe.
Mike Scales, I thought The Gambia, was producing oil already, what’s that building at turntable all about, the building with the armed forces gaurding It?
The Grim reaper sees and does things impossible to be to the consent of the normal human beings.
Grim reaper has scythed his family in ritual sacrifice before he was able to gain his bloodshed-based devilish spirits and powers in the midst of innocent children of the future of the Gambia.
Let Almighty God of grace be Gambia’s protection, light and deliverance.
Bourne, do you smoke weed?
Grim reaper, does it really matter to you that Gambia’s youth are a generation of drug addicts?
Grim reaper, tell me the truth; how many Gambians did you kill?
Mike, don’t you think offshore oil fracking has equal or even worst looming ecologic harzards like any traditional drilling techniques..Gambia is a small country territorially! The geological observations that the bleeding of the Earth’s subterranean layers of it’s natural contents could be related to earthquakes and other natural disasters should therefore be very alarming to a country of her size.
I am also dumbfound about the fact that countries with natural or mineral resources, gain lowly disproportionate interests in the exploitation or speculations of those natural/mineral resources as if they are being endowed.
If Gambia and stakeholders are exploiting or about to exploit these resources, I would like to urge the new government to stop and make a check to the interest of the small country. The River Gambia is the greatest gift nature have blessed Gambia with.
I personally would like to be part of any Greenpeace campaign against a wolfish Australian venture like it in the whole region.
Please be urged Mr. Scales, to help sincerely put me in the light if I am off course.
We need cash all new government staffs living in a luxury hotel and luxury life style witch cost the Gambians more than $4m a week so something to do
Yes, Gambia needs cash because the cash junky former president of the Gambia, Jammeh and his wine and dine ‘khalifess’ have flushed a lot of it down their Kanilai toilets by throwing out booze parties, wrestling shows and o….s. Most shocking of all is thinking of him and his b.t.h feeding the human flesh of his perceived enemies to starved lions and crocodiles.
Yes, Gambia needs cash but the gaining sources needs to be very well considered. This is something and idiot like you can’t foresee or be helped to foresee.
African governments never come cheap !
Why do you think Jammeh would not leave ?
Jack; I think you raise some very important issues with “fracking”
Certainly In the UK there are many concerned groups who appear to have been devalued by local authorities and by several unsuccessful court cases;
President Trump also appears to overturn previous US Governments position on the issues of fossil fuels which generate “energy”
Though they have given the Paris accord on climate change until the end of May to deliver the US government’s position.
The needs of developing nations need for cheap energy may override environmental issues.
Gambia has given little leadership on this issue for the last 22 years.
Gambia’s energy policy is subject to an improbable solution, but I was involved in an initiative from John Moores University in Liverpool where by there top professors wanted to explore fossil fuel potential in Gambia, Only to be judged unimportant to the APRC government and the scientists were disregarded.Even though there interest and investigations were to be free of charge.
Certainly solar power and Biomass { the burning of Miscanthus} are good options for local power generation. The Gambia has one Biomass plant. But diesel generated power is the back stop of current thinking.
Looking ahead if oil can be gained in say 10 years time this would change the whole prospect for Gambian energy and could fire larger plants for manufacturing ie cars etc.
I am still waiting for your new government’s energy policy statement along with many other interests.
But at present the ecological issues are not manifestly relevant.Though with time they may become so. Africa normally follows western thinking and sometimes grant aid from The West is based upon such assurances from Government.
Thanks Mike. Your write up here is a piece worthy of consideration and realistic reasoning at the same time debatable.
Grim Reaper; Am planning to visit Gambia soon having been unwelcome since 2007. God Willing I can update my local knowledge and do some relevant research/
The site you mention is unfamiliar to me, But Following the Carnegie debacle. I would be interested if the suspect” Uranium” is either true or false ?
Mike Scales, yep lovely building it’s “The Gambia National Petroleum Corporation Headquarters”, yep your correct about the uranium, it’s also here, come take a look, The Gambia is paradise, things have changed in the last 10 years, under your best enemy,
True, things are really radioactive out in the bushes of Foni; landmines, unmarked graves and all.
– and “The Gambia National Petroleum Corporation Headquarters” becomes the envy of the world.
Ha! No needs to guess why the Gambia fastest developing nation of the world……Second to none
WE must also consider natural Gas;
This would change Gambia’s economic prospects were there plenty; Which I am certain there must be some either under the ground on land or at sea.
Mike Scales, the Englishman is no Fool, that’s why he fought the French and held onto The River Gambia, guaranteed natural resources.
Mike, you are right, the greatest natural resource of all is the Gambian people for this matter.
However, the loss of flora on large parts of the river Gambia and it’s tributaries must be attributed to something. Muddy banks of the affected areas emit very strong gaseous odour…is it gas lying low under those muddy banks…Or perhaps it’s a transpiring environmental disaster…? Can this mud itself be contained and put under some kind of pressure to produce natural gas? I have a strong believe that there are means to produce or obtain gas in the country. If gas can be produced from trash and other human waste, then why not from mud in abundance that resembles crude oil. At least the culture of firewood cooking can be made history and the few remaining trees can be saved to generate.
The greatest natural resource of all is the Gambian people. For too long held back by colonialism and poor government policies.
Gambia has a bright future;
Such things like seeping mud banks are out of field. I am a deal maker. I take the knowledge and information and formulate needs in exchange for benefits.
I like this closing statement;
I can do for you today, something that no one else can do.
I can Revolutionise your process
I can Meet all your needs
I can Make you money
I can Save you money
The rest is down to the scientists and my presentation.
Remember the six P’s
Perfect Planning Prevents Piss Poor Performance
Well, I don’t think it’s that bad building curiosity out of the odds. At least to friends of the environment, this great loss of flora on the R. Gambia and tributaries should be a matter of great concern.
The Aprc is a sad archive of our history so Gambia must start again seeing things positively and not letting herself haunted by the recent past.
Its such a pity my scientists from Liverpool were not encouraged by the APRC government.
There data may have offered SOLUTIONS.
Needs versus Solutions creates Benefits.
Benefits allied to cash flow and profit forecasts equals…Financial independance.
My friends;
You should never fear technology, scientific research or international investors/ investment.
The 10% tax that Mr Jammeh imposed on extracted oil even before it has been extracted showed a blank understanding of how modern international business works.
All speculation is based upon high risk and long term profitability. To set such a high tax tariff would only place Gambia’s oil at the very bottom of any drilling/ large extraction capability list.
These days the technology can drill not only downwards, but downwards and side ways. Meaning an oil field can be extracted from a well situated miles outside any National boundary where the “tax rate” is cheaper.
These oil companies are based upon assets worth trillions of dollars. The path to the end game is long and expensive and full of risk. This risk and its potential financial loss must be understood.
The process from seismic survey to oil extraction is long and laborious.
Mike Scales, you give a good sales pitch to someone who is financially illiterate, tell me how much tax does the UK charge on fuel? And what was BP oil, net profit for their last financial year.
Is that tax on fuel charged at the pump or crude oil extracted from the North Sea? BP profits currently as with rates of tax are available online. You should also look up wholesale prices and tax ; What is the current standard tax rate for Gambian’s and what is the current rate of VAT in Gambia ?
Crude oil is rated on quality before and after refinement. As with all these processes you can google to increase your knowledge; Though sometimes if you do not understand the jargon, you could take a uni course in search of a degree to further your career or understanding.
My own expertise is printing machines, namely Photocopiers and computer connected colour printers and children’s confectionery.
Mike Scales, at the pump.
Would you like a lollypop sweetie ?
Mike Scales, your very quick to broadcast the 10% tax levy that The Gambia has imposed, but very hesitant on broadcasting the 50-70% tax levy the UK charge at the pump,
“The needs of developing nations need for cheap energy may override environmental issues” as per Mike Scales. A worthy debate topic! Do developing countries have the luxury of pursuing and/or upholding western world environmental policies with so many hungry mouths to feed?
Jack’s question; “Muddy banks of the affected areas emit very strong gaseous odour…is it gas lying low under those muddy banks…Or perhaps it’s a transpiring environmental disaster…”? hasn’t been answered.
The Gambia should be careful in signing any deal or start a new project. We should be sure that the input will generate the best output. Potential commercial agriculture should be sustainable and take great concern about the survival of the environment. We should always protect the land own by the citizens, particularly those owned by the poor farmers.
“ecological issues are not manifestly relevant, but with time may become so”
As with any procedure requiring extraction/ debate would be required to view the impact to the environment.
I am not a scientist and have no idea what could be causing strong odours from mud banks/
Some causes could be bacteria, or some form of plant disease, or decomposing foreign bodies such as fish.etc or possibly coal gas ???.
Scientific evidence through investigation required.
Next ?
Hungry mouths to feed;
I do not know any citizen in Gambia who does not know how to farm productively/
But if the price of labour and the price of the commodity does not generate a fair profit/ then as with many countries the farmers leave the land and migrate to the Cities. This is primarily down to lack of incentive and poor government policy.
The profit to farmers has been markedly eroded by too many interventions from growing/ harvesting/ wholesaling/ exporting and the path to the consumer.
Gambia did have a good policy for this, but I would need to investigate what happens now?
Why are farmers complaining of no seed/fertiliser/ tools ?
Seems to me the investment through grant aid must be placed with The Farmer to bring life back to the whole process ???
@ Mike Scales the problem is the Liberalized Agricultural Trading supported by the World Bank/IMF Structural Adjustment Programs. Government subsidies to agriculture has been significantly reduced or eliminated and left the farmers with little or no help. All the programs that use to help the indigenous poor farmers are very limited or no longest exist. Just remember what the Green Revolution did in these countries.
This is why is important to protect and support subsistence farming before shifting to commercial agriculture. This is vital to our food security and income of the farmers.
Peace/ This why I was delighted that OJ returned to the Ministry of Agriculture/ He knows the road map.
But some on here wanted to be-little OJ and history/
Your analysis is based upon knowledge and experience. I commend your insight and vision/
Yes we can !!!
As for international intervention through loans grant aid?? I would be very cautious of international intentions. Government take note; Freedom from debt is freedom forever !!! I would reduce the size of Government and increase the size of tax payers earning and prospering. Simple !!!
Grim Reaper/
The current price per litre at UK pumps is around 1.19 It was as low as 1.09 Yes the UK take a high toll in tax at the pump/ But current price to the consumer is less than the 1.47 we were paying only a short time ago. This means Lower transport costs for food/ and other retail/ manufactured products have seen a significant rise in free market spending by the consumer bringing surplus cash in the pockets of every household. I was surprised there was no increase on tobacco/ fuel/ or wines and spirits in the March Budget and relieved the Chancellor did a U turn on increased taxation for the self employed.
These guys don’t eat if they don’t work and are exploited by big business to increase their profits and abandon their social obligations/ as with other scams such as contracted hours working.
Low unemployment is underpinned by “The Black Economy” a good example is cash in hand work for illegal immigrants.
The UK is in grave danger of giving a boost to those who dodge tax’s… and must come down heavily on super charging Tax for those employers guilty of exploiting the poorest in exchange for profit. The government should protect those who work and go after those who exploit their employees.
Mark my words this will happen soon.This is a Tory government>>> they think and sleep Tax they create tax out of thin air.
The unmitigated onslaught on benefits to the sick and disabled is another government scandal by this Tory Government who tax the poor to give to the rich. I think we will see a new Political party emerge in due course called The Robin Hood Party who steel from the rich and give to the poor.
In my dreams lol
Mike Scales, yes I am aware of what you are saying I Live in rip off Briton , but in the scale of things, the 10% tax(infact I think it should be 20% tax) that The Gambia is levying is nothing, my motto is, live and let live, don’t you want to see The Gambia and her people be prosperous?
Mike Scales, any large scale undertaking in mining, extraction, drilling and agriculture must be preceded by an environmental impact assessment study. The design and scope of the study is driven by numerous factors that inform the depth of study. Assessments must also be conducted in tandem with ongoing activities through the life of the undertaking to again meet various objectives that include guaging the sustainability of exploitation of natural resources.
The odor emanating from bogs, mudflats, swamps and bodies of water is a result of processes that mostly date back to the ages. However, man made environmental pollutants and effluents can also exacerbate the problem of air-toxics (toxicants) and effluent discharges in the environment resulting in intolerable levels of noxious agents.
The mangrove swamps in and around the greater Banjul area are a dynamic and living environment that offer unique benefits for estuarine (estuary) and riverine (river) biodiversity but can yield an array of gases through bio-degradation of organic matter. It is important to routinely monitor the surrounding environment for the object of identifying and taking measurements of the levels of elements. The unique smell around Bund Road and the area that Banjulians fondly called “BOKISS” is or was a different kettle of fish. It is important to note that not all smell emanating from wetlands is bad for the environment! Humans may not like the smell but we keep encroaching on wetlands with little regard for the benefits of maintaining a good balance of biodiversity in our environment.
Mike, please don’t step into uncharted and murky waters! Smile.
Andrew ; I always bow down to superior knowledge; Your a very clever and most capable man; Your explanation make a lot of sense;
I am not a micro biologist/
One suggestion to those who raised this topic and allied concerns;
Go to The Medical research facility at Fadjara and ask for micro biological tubes and spatula’s then take samples and return to the Lab for testing.
You should get the results back within hours/days
Hopefully they won’t charge much if anything ? If they do send me the bill/
I did bring to Gambia a revolutionary product called biocide. It was added to household paint and killed mosquitoes who landed on it within 30 minutes I sold some to a very large hotel in Gambia/ It killed cockroaches and other nasties and remained effective for upto 5 years. It also could be used on floors and drains and upholstery/ It was more deadly that Detox and 100 times safer/ You could drink a gallon of it with absolutely no risk/
Another trade initiative of no interest to the APRC
Andrew I know my limitations;
Grim Reaper;
I brought a 100 trade initiatives to Gambia:
On my office wall their sits a picture of General George Armstrong Custer surround by red Indian’s at the battle of the Little Big Horn; He and the 7th cavalry were slaughtered; Beside the battle stands a salesman with a machine gun next to a covered wagon/
The caption reads,,,> General Custer I have something that can win you this battle;
Custer replies>>>Sorry son I ain’t got time right now/ can you call back when I’m not busy.
Mike Scales, well it’s a new government now, probably you can try again with your 100 trade initiatives!
I swam so many times in the immediate Atlantic inlet to the River Gambia; from around it’s shores to the Atlantic hotel to Albert Market, despite being aware of the drainage pipes, flushing sewage from inner Banjul and all around, into the River Gambia.
I remember too the tractor load of household “soil” been dumped in the swamps around Banjul, but could this sort of environmental abuse have its toll on the River Gambia’s length to Bintang and tributaries all the way up Kalagi..A lot of mangroves are lost on the River Gambia and it’s branches across the country, impossible for even seedling to make it. Is it caused by unchecked deforestation… still remains an issue of serious concern that overrides the offshore petroleum speculations, which is definitely another environmental menace to the small country. Gambia needs to meet her self-food suffiency demands through subsistence farming, I agree, prior to meeting any types of “make it a Dubai” dream. The fact that Jammeh been a hypocrite, to claim to be a defender of Gambia’s interests from Western exploitation shouldn’t refute the fact that elements of the West would exploit resources in The Gambia and elsewhere in Africa, 99.8% to their own interests, and with little regard or none for the environmental consequences of their ventures.
Stepping and bathing in uncharted and murky water has driven me nuts. That’s probably why I can’t use my brains any better than I am. I recalled the medical research facility at Fajara going around the country taking questionable amounts of blood samples from the innocent peasantry who wouldn’t ask any questions at all. It was not taken in test tubes but in what I’ll call mini bottles. I have always wondered what new disease they have discovered or to which blood bank the bloods might be banked.
Maybe they should now start some real serious business with the university of the Gambia by putting students of faculties to task. Business and profits, just profits, too, provokes piss poor performance; in my opinion.
GR/// Thankyou for the invitation But sadly I must decline.
Jack / I swam in the off reaches of The Atlantic hotel too. But could never identify what was smashing against my legs in the water/ Then they constructed a barrier pushing the ocean 100 metres back from the edge of The hotel. So i can identify with your concerns. It was said that with global warming and rising sea levels, the sea around Banjul would rise one metre over the next 10 years. We have already seen the extensive flooding of Banjul on two recent occasions. I was close friends with The Mayor Of Banjul at that time and we discussed these issues. Another scenario suggested was the moving of the Capitol to a safer area in time.
I share you detailed concerns about the mangroves and and smelly mud banks and also the impact on all if and when offshore drilling begins. Your explanation of the taking of blood samples from villagers is also something that needs an explanation.
Hopefully with a more transparent government these issues can eventually come with a detailed explanation ?
It is a necessary and interesting topic for further inclusive debate/ Thank You for this contribution to concern and local knowledge
Yeah Mike, the taking of blood sample was a routine in the villages and even part of the GBA, perhaps from the latter part of the PPP regime and most part of the Aprc regime. I recalled the practice simply because I sensed they could have taken mud samples on the River banks too atleast not for geological purposes, but possibly could make new revelations about the anopheles gambiae, as the mangroves are a perfect habitat for the very much despised insect.
I think too, the medical research facility should be an annex of the UTG if it already isn’t. The UGT I think was established during the Jammeh dictatorship regime just to gain him, Jammeh, a “Doctor” in his title paragraph, but it is very due now to give the UGT itself a university’s title.
Thanks.
I have a friend who is a teacher at UTG. I agree with your analysis. UTG has been the subject of controversy over the past few years. One of its functions was as a bus stop for demoted APRC sentinels waiting for another government post. Subject to mood swing of “the wizard of Oz”
I have also read similar controversies over the role of The Medical Research Facility. But from this distance, my view was that Gambian’s are very suspicious of anything they don’t truly understand especially if its of Foreign origin. Things might be different with the UDP government/ simply because Gambia needs Foreign import of technology for to modernise and upgrade.
I also have a friend from Kenya who works as a microbiologist at Oxford University and for the Kenyan government. Her speciality is mosquitoes.
They are making good progress on negating the transfer of disease from “the little beast” to humans and livestock;
Getting suspicious of things you don’t understand is naturally human and would be wrong to judge only Gambians of this human characteristics.
Myself who travelled to the West as a beginner have a a better understanding of the latter I guess than yourself who travelled Africa and around the world already a master in his trade. Misunderstanding needs to be avoided as much as possible if it is seriously our good intention to make available brains, hearts and courage to the dead dumb and the roaring cowards.
I have never set an eye on real oN the UGT campuses or friends with one of it’s students or tutors but do believe it should be upgraded from a ‘bus stop’ to a ‘pit stop’ for the Gambia’s human assets.
Rect; I have never set eyes on the UGT campuses…
I like you analogy. Pits stops refresh and renew. Bus stops only frustrate and guard you from the elements. Tell Me more, this is a very productive exchange of idea’s >>>>>
You can’t understand how bus stops can recycle fatigue to boredom and vice versa untill it becomes a daily routine to you. Pit stops at least do boost performance… Isn’t it?
You have my vote Jack; No contest !