logo-loader

Oil Column: Excitement grows as drills start turning in Morocco

Last updated: 01:15 29 Oct 2013 AEDT, First published: 02:15 29 Oct 2013 AEDT

no_picture_pai

After several months of anticipation and excitement among London’s oil investors drills are now turning in Morocco.

BP’s move into the play via a deal with Kosmos earlier this month was a significant boost for the exploration frontier.

Having relied on farm-out deals, seismic and rig contracting thus far investors can now look forward to the prospect of tangible exploration results and the possibility of new discoveries.

Cairn Energy today revealed that drilling had begun on the first wildcat exploration well on the Foum Draa block. 

The well, located in 1,500 metres of water, is targeting over 140mln barrels of oil and it will take 60 days to drill down to the target depth of 5,500 metres.

As well as Cairn, a number of other explorers also have a stake in this new opportunity. AIM quoted San Leon (LON:SLE) and Serica Energy (LON:SQZ) own 14.2% and 8.3% respectively, while Toronto listed Longreach Oil & Gas (CVE:LOI) has 2.5%.

Cairn also unveiled another new partnership – this time with Kosmos Energy – which will see a well on the Cap Boujdour block in the second half of next year. But, much sooner, before the year’s end, Cairn will drill the Cap Juby well alongside Genel Energy (LON:GENL).

The start up of operations at Foum Draa is a hotly anticipated milestone for the regional exploration play and it signals the start of a very significant period – which will see around 10 wells drilled over the next eighteen months.

Whilst this work offshore attracts a lot of attention, important value adding work is also progressing onshore Morocco as well.

Gulfsands Petroleum (LON:GPX) has kicked off drilling its first well of nine wells to be sunk on the Rharb permits in two back-to back-drilling programmes.

The well lies within one kilometre (km) from a gas export pipeline and, if successful, it is expected it could be quickly tied in for delivery of gas to existing demand from local buyers.

Gulfsands chief executive Mahdi Sajjad told investors the firm was looking forward to seeing the results of this first well later next month. The "significant milestone", he said, had been achieved, not least through the cooperation from the management of ONHYM, the firm's government owned partner for activities in Morocco.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

7 hours, 1 minute ago