UK Norway Update - discovery and farm out
FOR IMMEDIATE RELEASE 15 November 2018
CAIRN ENERGY PLC
("Cairn" or "the Company" or "the Group")
UK Norway Update - discovery and farm out
Cairn announces the following;
Ø An oil discovery on the 9/14a-17B well and associated side-track on the Agar-Plantain Prospect in the UK North Sea
Ø Farm out agreement for a 40% non-operated interest of the Chimera prospect in the UK North Sea
Ø Commitment exploration well in the UK North Sea targeting the Ekland prospect failed to encounter commercial hydrocarbons
Ø The next well in Cairn's exploration programme will be Presto (formerly Stjerneskudd) on PL885 in the Norwegian North Sea
Based on preliminary analysis, the Operator estimates the Agar-Plantain discovery holds recoverable resources of 15 - 50 million barrels of oil equivalent (mmboe).
The discovery is located in close proximity to existing infrastructure, located 12 kilometres (km) from the Beryl Bravo facility to the southwest and 14km from the Alvheim FPSO to the southeast.
Further evaluation of development options to establish commerciality will be undertaken by the joint venture partners in the coming months.
The initial 9/14a-17B well on the Agar-Plantain Prospect was drilled safely to the target depth and encountered excellent quality oil and water bearing sands. The wellbore delineated the eastern extent of the hydrocarbon discovery and the partners agreed to drill the contingent side-track to further appraise the discovery. The Agar side-track encountered a 20 metre gross interval of very high quality oil bearing sands.
Cairn has an option to take over Operatorship with respect to future activity on the Agar-Plantain project. The Agar-Plantain well is currently being plugged and abandoned by Operator Azinor Catalyst. Working interests in the well are: Azinor Catalyst (Operator) 25%, Cairn 50% and Faroe Petroleum 25%.
The commitment exploration well on licence P2184 in the UK North Sea targeting the Ekland prospect (Cairn Operator, 45% WI) failed to encounter commercial hydrocarbons and has been plugged and abandoned.
Cairn is pleased to announce that it has entered into a farm out agreement for a 40% non-operated interest in Licence P2312 (Cairn Operator, 100% WI) containing the Chimera prospect targeting 154 gross mmboe mean resource ( 92 mmboe net) in the UK North Sea with plans to drill a well in H2 2019. The farm out agreement is conditional upon regulatory consent.
The next well in Cairn's exploration programme will be Presto (formerly Stjerneskudd) (Cairn 30% WI) on PL885 in the Norwegian North Sea, targeting 160 gross mmboe mean resource (48 mmboe net) with standalone potential and significant follow on potential with success. The well is expected to spud in late December 2018 by Operator Equinor.
Notes to Editor
Cairn farmed in to licence P1763 with Azinor Catalyst in June 2018, acquiring 50% WI within the Sole Risk (Plantain-Agar) Area and 25% WI within the wider licence area which is operated by Apache (50%). Faroe Petroleum also farmed into the Sole Risk Area with 25% WI and 12.5% WI in the wider licence.
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Enquiries to: |
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Analysts / Investors |
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David Nisbet, Corporate Affairs |
Tel: 0131 475 3000 |
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Media |
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Linda Bain, Christian Goodbody |
Tel: 0131 475 3000 |
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Patrick Handley, Will Medvei Brunswick Group LLP |
Tel: 0207 404 5959 |
About Cairn Energy PLC
Cairn is one of Europe's leading independent oil and gas exploration and development companies and has been listed on the London Stock Exchange for 30 years. Cairn has explored, discovered, developed and produced oil and gas in a variety of locations throughout the world as an operator and partner in all stages of the oil and gas lifecycle.
Cairn's exploration activities have a geographical focus in North West Europe, West Africa and Latin America, underpinned by interests in production and development assets in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway, Senegal and Mexico.
For further information on Cairn please see: www.cairnenergy.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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