Cairn joined by ConocoPhillips offshore Senegal
FOR IMMEDIATE RELEASE 1 August 2013
CAIRN ENERGY PLC ("Cairn" or "the Company")
Cairn joined in West African offshore exploration blocks by ConocoPhillips
Cairn is pleased to announce it has entered into a farm down agreement with ConocoPhillips for three contiguous blocks located offshore Senegal, West Africa.
Under the terms of the agreement, which is subject to Government of Senegal approval, ConocoPhillips will acquire a 25% working interest from Cairn in the three contiguous blocks - Rufisque, Sangomar and Sangomar Deep where a 2,050km2 3D seismic survey has been used to identify prospects.
The exploration campaign is targeting a block wide potential of more than 1.5 billion barrels of yet to find resource with a proposed two well programme with drilling expected to commence in H1 2014 with the Cairn contracted Cajun Express rig.
Cairn will retain operatorship and 40% interest in the blocks during the exploration phase. Petrosen, the Senegal National Oil Company, will retain a 10% interest in the exploration phase. In the event of a commercial success, ConocoPhillips would have the option to operate the future development of the resource.
The detailed financial terms of the agreement are confidential; however, ConocoPhillips will pay Cairn a payment inclusive of a portion of back costs on the blocks, along with promoted terms of future exploration expenditure.
In March 2013, Cairn farmed in to the three blocks which were previously operated by FAR Limited with Petrosen as a JV partner. The transaction added a number of drillable prospects to Cairn's exploration inventory and drilling programme which will begin in Morocco in Q4 2013.
Simon Thomson, Chief Executive, Cairn Energy PLC said:
"Cairn is delighted to be joined in its frontier exploration programme in Senegal by ConocoPhillips. The strategic farm-out means Cairn is able to intensify its plans to explore its acreage offshore Senegal, where the gross prospective block wide resource potential is estimated to be in excess of 1.5 billion barrels. The transaction is in line with Cairn's strategy of balancing material frontier exploration alongside sustainable levels of financial commitment."
Enquiries:
Analysts/Investors
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Patrick Handley, David Litterick Tel: 0207 404 5959
Brunswick Group LLP
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, Republic of Ireland, 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 H2 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 by Cairn in 2010 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 is Operator (40%) to three blocks offshore Senegal, subject to regulatory approval.
Cairn in Republic of Ireland
Ø Cairn has farmed-in as Operator (38%) to two licences offshore West of Republic of Ireland.
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
This information is provided by RNS
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