Oil streak continues offshore Senegal

After going eight-for-eight in oil discoveries off the coast of Senegal, Australian energy company FAR Ltd. said it expects a revision to reserve estimates.

FAR Ltd. said it confirmed an oil discovery at the VR-1 well about 3 miles away from its SNE discovery off the coast of Senegal. It's the eighth successful well drilled offshore Senegal since work started in 2014.

"The VR-1 well has been highly successful, providing important information regarding the geology of the western flank of the SNE field," Managing Director Cath Norman said in a statement.

The SNE oil field met the minimum threshold to be considered a commercial opportunity by the third quarter of 2016, less than two years after it was discovered. By the company's estimates, more than 1.5 billion barrels of oil may be in basins off the coast of Senegal and the results from VR-1 could lead to revisions in the reserve estimate.

"Understanding these reservoirs is critical to finalizing the phase 1 development concept and plan," Norman added.

Cairn Energy, which has headquarters in Edinburgh, leads a joint venture targeting oil opportunities off the coast of Senegal. The Scottish company said most of the wells offshore Senegal have been completed ahead of schedule and under budget since operations began in 2014.

When it was discovered in 2014, the SNE field was considered the largest oil discovery in the world. FAR said the inclusion of the VR-1 into the drilling impact would have a minimal impact on funding for offshore Senegal.