OPL 322 is located in the far western deepwater region of the Niger Delta Basin. The block contains the Bobo field which at 2 479 metres is the second deepest water discovery in Nigeria. Shell discovered Bobo in 2005 but given its size and remoteness there are no near term plans to develop it. The block will expire in 2017. The integrity of the hydrocarbon trap and seal is a major risk in this region. Bobo has reserves of around 250 mmboe and at this water depth is non commercial. We believe that a minimum of 500 million barrels of oil would be needed for a commercial development. Although the block is under explored its frontier location and the inability of the NNPC and Dajo Oil to fund their share of costs means that further drilling is unlikely before licence expiry in 2017.