Skarfjell Appraisal Well

RNS Number : 8831B

Cairn Energy PLC

09 April 2013

 



                                                                                                                                    9 April 2013              

CAIRN ENERGY PLC ("Cairn")

Skarfjell Appraisal Well

The enclosed announcement has been issued by Wintershall Norge AS (35%; operator) with regard to the Skarfjell appraisal well in the Norwegian North Sea in which Cairn has a 20% interest (Bayerngas Norge AS, 20%; Edison International Norway Branch, 15%; RWE Dea Norge AS, 10%).

The Skarfjell oil discovery (Well 35/9-7; Cairn 20%) was made in April 2012 and was immediately followed by a 3D seismic survey over the accumulation. The operator's gross resource range for Skarfjell post discovery was between 60mmbbls and 160mmbbls.  Following completion of the appraisal well drilled downdip and designed to test reservoir extent, thickness and quality, Cairn has revised its gross resource range to between 74 mmbbls (92mmboe) to 235 mmbbls (282mmboe).

Simon Thomson, Chief Executive, Cairn Energy PLC said:

"Skarfjell is one of the largest discoveries in the Norwegian Sector of the North Sea in recent years. The combination of very good reservoir and large volumes will allow this discovery to be progressed towards development, with a number of commercially attractive options possible including a standalone facility or a hub development incorporating surrounding undeveloped discoveries."

Enquiries:

Analysts/Investors David Nisbet, Corporate Affairs	Tel: [phone]
Media Patrick Handley, David Litterick Brunswick Group LLP	Tel: [phone]

Delineation of the 35/9-7 oil discovery (Skarfjell) in the North Sea - 35/9-8

09.04.2013

Wintershall Norge AS, operator of production licence 418, is about to complete drilling of appraisal well 35/9-8 on the 35/9-7 oil discovery (Skarfjell).

Appraisal well 35/9-8 was drilled 1.8 kilometres north of the 35/9-7 discovery well.

The 35/9-7 oil discovery was proven in 2012 in Upper Jurassic reservoir rocks («intra Heather sandstones») about 16 kilometres southwest of the Gjøa field in the northeastern part of the North Sea. After drilling well 35/9-7, the resource estimate for the discovery was between 10 and 25 million standard cubic metres (Sm³) of recoverable oil.

The objective of well 35/9-8 was to delineate the discovery. The well encountered an oil column of 64 metres (gross) in the Heather formation, with reservoir rocks and reservoir quality as expected. Preliminary estimation of the size of the discovery is between 10 and 25 million Sm³ of recoverable oil.

The oil/water contact was encountered. A successful formation test was completed. The maximum production rate from a 13-metre interval in the reservoir was 300 standard cubic metres (Sm³) oil and 53 400 Sm³ gas per flow day through a 24/64-inch nozzle opening. The licensees in production licence 418 (link to fact page) will consider producing the discovery together with other discoveries in the area of the Gjøa field, or as an independent development.

This is the second exploration well in production licence 418. The licence was awarded in APA 2006.

The appraisal well was drilled to a vertical depth of 3232 metres below the sea surface, and was terminated in the Middle Jurassic Rannoch formation. The water depth is 368 metres. The well will now be permanently plugged and abandoned.

The well was drilled by Transocean Arctic, which will proceed to production licence 511 in the Norwegian Sea to drill wildcat well 6406/6-3 where Wintershall Norge AS is the operator.

 Contact in the Norwegian Petroleum Directorate
Eldbjørg Vaage Melberg, tel. [phone]

NOTES TO EDITORS

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. The company historically focused its activities on the geographic region of South Asia where it operated for more than 20 years.  During this time it discovered, developed and produced oil and gas both offshore and onshore in Bangladesh and India and made more than 40 significant discoveries.  In particular, Cairn made a major oil discovery in Rajasthan in the north west of India at the beginning of 2004 where over 25 discoveries have since been made with the potential to provide more than 30% of India's crude oil production.  Today, Cairn continues to hold an approximate 10% shareholding in Cairn India Limited. Cairn's business operations are now focused on frontier exploration acreage in Morocco, Senegal, Greenland and the Mediterranean along with exploration and pre-development interests in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Greenland, Norway, Spain and Morocco. 

Cairn in Morocco

Ø Cairn operates two exploration permits offshore Morocco where it is planning a multi-well drilling programme commencing Q4 2013.

Cairn in Greenland

Ø Cairn through its subsidiary, Capricorn, operates 11 blocks offshore Greenland.

Ø A total of 14 exploration wells have been drilled offshore Greenland to date, five of which were drilled in the 1970s, one in 2000, three in 2010 by Cairn and five by Cairn in 2011.

Cairn in UK and Norway

Ø Cairn has non-operated and operated exploration, appraisal and development assets in the UK and Norwegian North Sea.

Cairn in the Mediterranean area

Ø Cairn is in the early stages of carrying out frontier exploration in Spain.

Ø Cairn has interests in Area 3 in Malta.

Cairn in Senegal

Ø Cairn has farmed-in as Operator (65%) to three blocks offshore Senegal, subject to regulatory approval.

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's approach to sustainability and performance in accordance with the Global Reporting Initiative Guidelines is detailed in our annual Corporate Responsibility Reports, available at: http://www.cairnenergy.com/index.asp?pageid=279&year=latest

For further information on Cairn please see: www.cairnenergy.com

 

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