Cairn Energy plc Announces the Completion of the Farm Out Agreement with Dyas Uk Limited
Jan 21 15
Cairn Energy plc announced the completion of the farm out agreement to Dyas UK Limited for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea for a carry of Cairn's exploration and development costs up to a cap of USD 182 million effective January 1, 2014. The Catcher development is on track for first oil from 2017. As a result of the transaction, Cairn has reduced its forward capital expenditure to the end of 2017 by USD 380 million. Cairn retains a 20% working interest in the Catcher licence. Cairn has also been awarded the following non-operated interests in five licences in the Norwegian 2014 APA Licensing Round. These licences do not carry firm well commitments and are in locations adjacent to current areas of interest in Norway.
Cairn Energy plc Announces Discovery of High Quality Oil in the Second Well in the Senegal Exploration Programme
Nov 10 14
Cairn Energy plc announced a discovery of high quality oil in the second well in the Senegal exploration programme. The SNE-1 well is located in 1,100 metres (m) water depth and approximately 100 kilometres (km) offshore in the Sangomar Offshore block with a target depth of ~3,000 m and targeting the Shelf Edge Prospect. Intermediate logging of the SNE-1 well has confirmed hydrocarbons in the Cretaceous clastics objective which is of similar age to oil bearing sands found approximately 24 km away in FAN-1. Initial analysis of the SNE-1 well indicates: 95 m gross oil bearing column with a gas cap; Excellent reservoir sands with net oil pay of 36 m; Oil of 32 degrees API from samples of gas, oil and water recovered to surface; and Preliminary estimates of the Contingent Resource range from P90, 150 mmbbls, P50, 330 mmbbls and P10, 670 mmbbls recoverable. Further evaluation of this zone is continuing. The deeper target of karstified and fractured Lower Cretaceous shelf carbonates is yet to be reached. The results of the FAN-1 well and the final analysis from the SNE-1 well will be used to decide optimal follow up locations to determine the extent of the hydrocarbon accumulations and additional activity which is targeted for 2015 onwards.
Cairn Energy plc Announces FAN-1 Exploration Well, Offshore Senegal, Discovers Oil
Oct 7 14
Cairn Energy plc together with its joint venture partners announced that the FAN-1 exploration well, offshore Senegal, has discovered oil. The well, located in 1,427 metres (m) water depth and approximately 100 kilometres offshore in the Sangomar Deep block, has reached a Target Depth (TD) of 4,927 m and was targeting multiple stacked deepwater fans. Preliminary analysis indicates: 29m of net oil bearing reservoir in Cretaceous sandstones; No water contact was encountered in a gross oil bearing interval of more than 500m; Distinct oils types ranging from 28° API up to 41° API indicated so far from a number of oil samples recovered to surface; Initial gross STOIIP estimates for the FAN-1 well range from P90, 250 mmbbls, P50, 950 mmbbls to P10, 2,500 mmbbls and are broadly in line with pre-drill STOIIP estimates. As stated prior to the commencement of operations there are no plans for immediate well testing. Further evaluation will now be required to calibrate the well with the existing 3D seismic in order to determine future plans and optimal follow up locations to determine the extent of the discovered resource. Once operations are completed on the FAN-1 well, the rig will move to complete the second well, SNE-1 where the top hole has been drilled pending re-entry. This Shelf Edge Prospect targeting a dual objective in 1,100m water depth is in the Sangomar Deep block. The FAN-1 well was drilled using the semi-submersible drilling unit ‘Cajun Express’. It is the third well in Cairn's North West Africa programme and first in Senegal. Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) ConocoPhillips has 35% WI, FAR Ltd. 15% WI and Petrosen, the national oil company of Senegal 10% WI. The three blocks cover 7,490 km2.