Cairn Climbs Following Positive Well-Test Results Off Senegalby
Cairn Energy Plc rose the most in a year in London trading after reporting positive results from an oil well off Senegal.
Cairn advanced as much as 8.9 percent on Monday, the biggest jump since November 2014.
The company successfully flow-tested the SNE-2 well in the Sangomar Offshore block at a rate of 8,000 barrels a day, the Edinburgh-based explorer said in a statement. The well has been appraising the 2014 discovery of crude in the nearby SNE-1 well.
“Cairn Energy has removed significant reservoir uncertainties from the SNE-1 discovery and the value applied to these contingent barrels should de-risk in parallel,” analysts at Jefferies International Ltd. said in an e-mailed note.
The stock traded up 6.4 percent at 167.8 pence as of 8:14 a.m. U.K. time, making it the best performer on the FTSE 350 Oil & Gas Producers Index.