Operational Update

RNS Number : 5018R

Cairn Energy PLC

09 March 2016

 

EMBARGOED FOR RELEASE AT 7AM                                                                        9 March 2016

CAIRN ENERGY PLC ("Cairn" or "the Company")

Second Successful Senegal Appraisal Well

Cairn is pleased to announce the successful testing of the SNE-3 appraisal well offshore Senegal.  Operations have been safely and successfully completed following drilling, coring, logging and drill-stem testing (DST). The well is now being plugged and abandoned.  Cairn's analysis of the extensive dataset collected is continuing with initial results as follows:

Ø Two drill stem tests were conducted within the Upper Reservoirs, confirming the deliverability of these units;

Ø DST 1a flowed at a maximum rate of ~5,400 barrels of oil per day (bopd) and a main flow rate of ~4,000 bopd over a 24 hour period from a 15 metre (m) zone 

Ø For DST 1b an additional zone of 5.5m was added and a combined maximum rate of ~5,200 bopd measured, with an associated main flow rate of ~4,500 bopd over a six hour period 

Ø Both main flow periods utilised a 56/64" choke

Ø Multiple samples of oil and gas recovered to surface from wireline logs and drill stem tests

Ø Confirmation of similar reservoir quality and correlation of the principal reservoir units between SNE-1, SNE-2 and SNE-3

Ø 144m of continuous core taken across the entire reservoir interval with 100% recovery

Ø Similar oil-down-to and oil-up-to depths seen in SNE-1 and SNE-2 - 101m gross (95m in SNE-1 and 103m in SNE-2)

Ø Initial indications confirm the same 32 degree API oil quality as seen in SNE-1 and SNE-2

Resource estimates for the SNE field continue to be revised and an update will be announced at the company's preliminary results on 15 March 2016.            

Cairn Energy Chief Executive Simon Thomson said:

"Cairn is delighted with the flow rates from the latest well in the Senegal appraisal programme, which validate the scale and growth potential of the SNE field. 

The results have demonstrated the ability of the upper reservoirs to flow at commercially viable rates and we eagerly look forward to the results of the BEL-1 well which will commence operations shortly."

Enquiries to:

Analysts / Investors

David Nisbet, Corporate Affairs                                                                              Tel: [phone]

Media

Patrick Handley, David Litterick

Brunswick Group LLP                                                                                           Tel: [phone]

NOTES TO EDITORS

The SNE-3 well is the second in a multi-well evaluation programme that includes comprehensive coring (360m of core has now been collected across SNE-2 and SNE-3) and testing to help delineate the shape of the structure and define the aerial extension to the south and establish deliverability and the full potential of the field. This comprehensive information will allow the JV to determine the further oil potential of the SNE-1 discovery and underpin the longer term field development plan.

The SNE-3 well is located in 1,186m water depth and is approximately 95 kilometres (km) offshore in the Sangomar Offshore block, reached the planned total depth (TD) of 2,782m below sea level (TVDSS).  The well has been appraising the southern extent of the field containing the 2014 discovery of high quality oil in the SNE-1 well, some 3 km to the north-east.​

The rig is moving to drill the third committed well, exploration well BEL-1, which will test the Bellatrix prospect and then be deepened as an appraisal well to evaluate the northern extent of the SNE field. 

The Ocean Rig Athena, a 7^th generation dual activity drill ship, under long-term contract with ConocoPhillips, is being used for the drilling programme.

Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rufisque), ConocoPhillips has 35% WI, FAR Ltd 15% WI and PETROSEN, the national oil company of Senegal 10% WI.  The three blocks cover 4,490km².

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

 

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