Greenland block acquisitions
Cairn Energy PLC
10 January 2008
EMBARGOED FOR RELEASE AT 0700
10 January 2008
Cairn Energy PLC ('Cairn')
Capricorn Acquires an Interest in Six Blocks Offshore West Greenland
Cairn announces that it has secured interests in a total of six hydrocarbon
licences offshore west Greenland through its exploration focused arm Capricorn.
The total combined area covered by these licences is approximately 52,000 km2,
which is equivalent to 231 North Sea blocks. Water depths in the blocks range
from 300 metres to 1,400 metres.
• Capricorn has been awarded an 87.5% operated interest in two blocks
(Sigguk and Eqqua) in the Disko West Licensing Round and a 92% operated interest
in a further two blocks (Kingittoq and Saqqamuit) in the Open Door Area. The
remaining interests in each of these four blocks are held by Nunaoil A/S, the
national oil company of Greenland. Each block has a seismic acquisition
obligation in the first phase of the exploration period.
• In addition to the above awards, Capricorn has acquired a 40%
non-operated interest in two other blocks (Atammik and Lady Franklin) offshore
west Greenland from EnCana Corporation ('EnCana'). The remaining interests in
these two blocks are held by EnCana (47.50% and operator) and Nunaoil A/S
(12.5%).
Only six offshore wells have been drilled in Greenland to date, one in 2000 and
the rest in the 1970s. Further details of Capricorn's activities in Greenland
will be provided in the preliminary results announcement to be made on 27 March
2008.
Dr Mike Watts, Exploration and New Business Director of Cairn, and Chief
Executive of Capricorn, commented:
'We are delighted to have secured an interest in these six exploration blocks.
Greenland is a true frontier country where oil and gas exploration is at an
embryonic stage. We look forward to working closely with the authorities and our
joint venture partners in Greenland as we commence our work programme
activities.'
Enquiries to:
Analysts/Investors
Capricorn Energy Limited:
Dr Mike Watts, Chief Executive
Jann Brown, Finance Director
Simon Thomson, Legal & Commercial Director Tel: 0131 475 3000
Media
Brunswick Group Limited:
Patrick Handley, Mark Antelme, Camilla Gore Tel: 0207 404 5959
Notes to Editors:
1. Capricorn where referred to in this announcement means Capricorn Energy
Limited and/or its subsidiaries as appropriate.
2. Capricorn Energy Limited is a subsidiary of Cairn Energy PLC based in
Edinburgh.
3. The blocks and percentage interests Capricorn now holds offshore west
Greenland are as follows:-
Licence and Block Name % Working Interest
Exclusive Licence 2008/10 (Sigguk) 87.50
Exclusive Licence 2008/11 (Eqqua) 87.50
Exclusive Licence 2008/13 (Saqqamiut) 92.00
Exclusive Licence 2008/14 (Kingittoq) 92.00
Exclusive Licence 2002/15 (Atammik) 40.00
Exclusive Licence 2005/06 (Lady Franklin) 40.00
4. The Disko West Licensing Round is a competitive exploration licensing round
held by the Greenland authorities comprising eight blocks offshore Disko Island
in west Greenland.
5. The Open Door Area is an area outwith the above mentioned competitive
licensing round.
6. Capricorn now has assets in Bangladesh, Nepal, Northern India, Greenland,
Tunisia, Peru, UK (West of Shetlands), Albania, Australia, and pending licence
awards in Spain and Sicily.
7. EnCana is a leading North American unconventional natural gas and
integrated oilsands company. EnCana acquired an interest in two exploration
licences in the Offshore West Greenland Bid Rounds in 2002 and 2004
respectively.
8. A signing ceremony speech and presentation made by Dr Mike Watts and a
speech made by Minister for Minerals and Petroleum Kim Kielsen are available on
Cairn's website at www.cairn-energy.plc.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 8 hours ago Johnson Matthey
- 9 hours ago Galliford Try
- 9 hours ago Galliford Try
- 9 hours ago Centrica
- 10 hours ago Smith & Nephew