Cairn to farm in to West African exploration block
For Immediate Release 8 August 2013
CAIRN ENERGY PLC ("Cairn" or "the Company")
Cairn to farm in to West African exploration block offshore Mauritania
Cairn is pleased to announce it has entered into a farm in agreement with Chariot Oil & Gas Investments (Mauritania) Limited, a wholly owned subsidiary of Chariot Oil & Gas Limited (Chariot) for a 35% non-operated interest in an exploration block offshore Mauritania in West Africa.
The block (C19), which is currently held by Chariot (90% and Operator) and the Mauritanian state company "SociétéMauritanienne des Hydrocarbures" (SMH) (10%), comprises 12,175 km2 in water depths ranging from shallow shelf to over 2000m. The block lies just to the north of existing discoveries in Mauritania and contains the Tertiary and Cretaceous deep water fan plays proven further south along the West African margin. The two wells previously drilled in the shallow water areas of the block, both contained reservoirs with oil shows and point to the oil migration potential from the south.
The most prospective part of the block is covered by a new 3,500km2 3D seismic survey recently acquired by Chariot and currently being processed. The seismic will be interpreted with the objective of identifying a high grade drillable prospect by the end of Q1 2014.
Under the terms of the farm in agreement, which is subject to Government approval, Cairn will pay Chariot approximately US$26 million for seismic and other back costs. Thereafter, exploration costs will be apportioned Cairn 38.89% (Working Interest (WI) 35%), Chariot 61.11% (WI 55%) and SMH 0% (WI 10%).
If, before the end of the first phase of the licence (15 June 2015), Cairn were to increase its interest to greater than 50% then Chariot will support Cairn's application for operatorship of the block.
Simon Thomson, Chief Executive, Cairn Energy PLC said:
"The opportunity in Mauritania presents an attractive new country entry, building on our existing Atlantic Margin portfolio in Senegal and Morocco. By developing an increased strategic presence in the under-explored and highly prospective new plays in this region, we can generate both operational and geological synergies and fully apply our proven frontier exploration skills."
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
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, 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 has farmed-in as 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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