Statement re Senegal
EMBARGOED FOR RELEASE AT 0700 4 January 2016
CAIRN ENERGY PLC ("Cairn" or "the Company")
Successful Senegal Appraisal Well
Cairn is pleased to announce the successful testing of the SNE-2 appraisal well offshore Senegal with positive results. Operations have been safely and successfully completed following drilling, coring, logging and drill-stem testing (DST). The well is now being plugged and abandoned.
Following this first successful appraisal well, resource estimates for the SNE field will be fully revised and announced after the results of the further appraisal activity. Evaluation of the extensive dataset collected is continuing, with preliminary analysis focused on the DST:
➢ DST over a 12 metre (m) interval of high quality pay flowed at a maximum stabilised, but constrained rate of ~8,000bopd on a 48/64" choke, confirming the high deliverability of the principal reservoir unit in the SNE-2 well
➢ DST over a 15m interval (~3.5m net) of relatively low quality "heterolithic" pay flowed at a maximum rate
of ~1,000 bopd on a 24/64" choke, confirming that these reservoirs are able to produce at viable rates
and thus make a material contribution to resource volumes. Flow was unstable due to the 4.5" DST tubing
➢ Multiple samples of oil and gas recovered to surface from wireline logs and drill stem tests
➢ Confirmation of correlation of the principle reservoir units between SNE-1 and SNE-2 with the primary reservoirs occurring in the gas cap as predicted
➢ 216m of continuous core taken across the entire reservoir interval with 100% recovery
➢ Similar oil-down-to and oil-up-to depths seen in SNE-1 - 103m gross (95m in SNE-1)
➢ Pressure, log and seismic data indicate that the hydrocarbon column contains limited segregated reservoir-seal pairs within a continuous connected pressure regime
➢ Initial indications confirm the same 32 degree API oil quality as seen in SNE-1
The SNE- 2 well is located in 1,200m water depth and is approximately 100 kilometres (km) offshore in the Sangomar Offshore block, reached the planned total depth (TD) of 2,800m below sea level (TVDSS). The well has been appraising the 2014 discovery of high quality oil in the SNE-1 well, some 3 km to the south.
Cairn Energy Chief Executive Simon Thomson said:
"We are delighted with the results of the SNE-2 well and in particular the well tests, which are significant in demonstrating the ability of the reservoirs to flow at commercially viable rates. The results help to confirm the overall scale and extent of the resource base in Senegal and further appraisal activity is expected to lead to future revision of the estimates. We now eagerly look forward to the results of the SNE-3 well."
http://www.rns-pdf.londonstockexchange.com/rns/6654K_1-2016-1-4.pdf
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NOTES TO EDITORS
The SNE-2 well is the first in a firm three well evaluation programme that includes comprehensive coring and testing to assess field extent, reservoir, deliverability and to build a detailed geological reservoir model from which reservoir connectivity can be demonstrated. 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 rig will next move 6 km south to drill, core and test the SNE-3 well to appraise the reservoir quality and continuity in a more southerly location.
The Ocean Rig Athena, a 7th generation dual activity drill ship, under long term contract with ConocoPhillips, is being used for the drilling programme.
A 3D seismic acquisition programme of ~2,400km2 over the Sangomar Offshore block and south west part of the Rufisque block has also been completed as part of the planned evaluation programme. The results will be analysed following seismic processing in order to develop additional prospectivity to a drill ready status in 2016.
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%. The three blocks cover 7,490 km2.
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
This information is provided by RNS
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