Cairn Energy PLC Senegal Appraisal and Exploration Well Result (7178B)
April 06 2017 - 2:00AM
UK Regulatory
TIDMCNE
RNS Number : 7178B
Cairn Energy PLC
06 April 2017
EMBARGOED FOR RELEASE AT 7AM 6 April 2017
CAIRN ENERGY PLC ("Cairn" or "the Company")
Senegal Appraisal & Exploration Well result
Cairn is pleased to announce the results of the VR-1 well
offshore Senegal. Rig performance continues to be excellent and
operations have been safely and successfully completed ahead of
schedule and under budget following the drilling and logging
operations.
Cairn's analysis and integration of the dataset collected is
continuing with initial results as follows:
VR-1 Appraisal Target
Ø The well encountered the targeted lower (500 series)
reservoirs within the oil column as anticipated, confirming the
reservoir presence, fluid contacts and fluid quality in line with
the results from the previous wells
Ø Preliminary analysis indicates the lower (500 series)
reservoir quality is better and slightly thicker than previously
encountered
Ø Oil and water samples were taken and recovered to surface
The appraisal results from VR-1 are very encouraging, as the
well is a significant step out, some 5 km west from the line of
wells drilled to date, including the SNE-1 discovery. The results
will be useful for the planning of the first phase of development -
the lower 500 series reservoirs are the better connected, more
tabular, highly productive sands, where water-flooding should yield
recovery factors of 30% or more. The well result confirms the
predictability of the mapped reservoir over a wide area giving
confidence to the reservoir engineering models. A resource update
will be provided later this year following completion of the
appraisal programme, however VR-1 has confirmed the 1C proven
resources for the field.
VR-1 Exploration Target
Ø The deeper carbonate exploration targets were encountered as
expected with indications of hydrocarbons at the base of the well
in tight formation that is not currently viewed as commercial
Ø A significant amount of new stratigraphic and log data has
been recorded which will be incorporated into the regional
geological model
Simon Thomson, Chief Executive Cairn Energy PLC, said:
"VR-1 is the sixth successful appraisal well on the SNE field
and has encountered some of the best quality reservoirs found to
date, some 5 kilometres from the original SNE-1 discovery well.
Resource numbers will be updated later this year following
completion of appraisal operations. The drilling programme is
currently ahead of schedule and significantly under budget. We look
forward to commencing operations on SNE-6."
The VR-1 is being plugged and abandoned and the Stena DrillMAX
drill ship is moving location to commence operations shortly on the
SNE-6 appraisal and interference test well, 2 km to the south of
the SNE-1 discovery well.
Enquiries to:
Analysts / Investors
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Patrick Handley, David Litterick
Brunswick Group LLP Tel: 0207 404 5959
NOTES TO EDITORS
The JV has drilled eight wells in three years; with two basin
opening discoveries in the first 12 months of operation in 2014,
followed by four wells completed ahead of schedule and under
budget. Cairn then announced a contingent resource upgrade with
gross oil in place on SNE of more than 2.7 billion barrels. The
third phase of drilling commenced in January 2017 with further
evaluation of the SNE discovery.
Cairn has a 40% Working Interest (WI) in three blocks offshore
Senegal (Sangomar Deep, Sangomar Offshore and Rufisque), Woodside
has 35% WI, FAR Ltd 15% WI and PETROSEN, the national oil company
of Senegal 10% WI.
Cairn Energy PLC ("Cairn") is one of Europe's leading
independent oil and gas exploration and development companies and
is listed on the London Stock Exchange. Cairn has discovered and
developed oil and gas reserves in a variety of locations around the
world.
Cairn's business operations are now focused on frontier
exploration acreage in North West Europe, North West Africa, North
Atlantic and Mediterranean, underpinned by interests in development
assets in the North Sea. Cairn has its headquarters in Edinburgh,
Scotland supported by operational offices in London, Norway and
Senegal.
Cairn and Corporate Responsibility
Ø Cairn is a signatory to the UN Global Compact and our core
values of respect, responsibility, relationships and our
commitments towards people, the environment and society are
enshrined in our Business Principles, which are available on the
Cairn website at
http://www.cairnenergy.com/index.asp?pageid=282
Ø Cairn became a participating company in the Extractive
Industry Transparency Initiative (EITI) in September 2013. The EITI
is a coalition of governments, companies and civil society, who
have adopted a multi-stakeholder approach to applying the EITI
global standard promoting transparency of payments in the oil, gas
and mining sectors http://eiti.org/
For further information on Cairn please see:
www.cairnenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
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