After the Dorade-1 came up barren in mid-October, the Stena Tay rig relocated to the Capitaine-1A location, but this well has found nothing more than water-bearing sands.
Capitaine is only 27km south-west of the US$600 million Chinguetti development that is due to begin production in early 2006. Woodside was targeting up to 200 million barrels of oil at Capitaine, which was drilled on the same channel sand trend as Chinguetti, which also yielded the Banda and Tevet finds.
Woodside opened at $19.52 on Friday but closed at $19.10. On Monday it closed at $18.77. Hardman opened at $2.08 on Friday and fell during the day and on Monday to finish at on Monday at $1.94.
ROC – a junior partner in the Mauritanian venture with only 3.69% equity in the Capitaine well – fared much better. It opened at $1.85 on Friday and closed at $1.83 on Monday, not bad considering the fall in oil prices.
Hardman investor relations manager Dean Richardson said that it was unrealistic to expect a 100% success rate in a wildcat drilling program.
“An unsuccessful well is always disappointing, but the joint venture is still very confident about the area, and we still believe there are opportunities there,” he told Dow Jones Newswires.
The partners hope for better news later this month when drilling begins at the Merou prospect.
Located on the same trend as the Tiof field, Merou has a pre-drill target of 250-300 million barrels of oil, according to Hardman.
The Chinguetti and Tiof fields have excellent commercial prospects and the partners confirmed another well, Tevet-1, as a new oil discovery in early October. Tevet is believed to contain between 50 million and 100 million barrels of oil and may be tied into the Chinguetti development.
Woodside, Hardman and Roc are operating in three different Mauritanian offshore permits in partnership with several other companies. Chinguetti, Tiof, Dorade and Capitaine all lie in the PSC B permit. Interests in this permit are Woodside 53.846%, Hardman has 21.6%, BG Group 11.63%, Premier Group 9.231% and Roc Oil 3.693%.
The Mauritanian Government has signalled it is likely to exercise its entitlement to acquire a 12% interest in the Chinguetti Field Development on a pro-rata basis from all current Chinguetti participants.
This option entitlement lapses on 20 November, 2004.
"In the event that the Government does exercise its right in this respect it will be responsible for its share of development and past exploration costs associated with the Chinguetti Oil Field," said Roc CEO John Doran.
Chinguetti will be the first regular oil production in Mauritania, marking the entry of this poor Saharan nation of 2.5 million people into the ranks of oil-producing countries.
