CAPRICORN ENERGY PLC

Management Reports • Apr 11, 2016

National Storage Mechanism | Additional information

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RNS Number : 7222U

Cairn Energy PLC

11 April 2016

EMBARGOED FOR RELEASE AT 0700                                                                    11 April 2016

CAIRN ENERGY PLC ("Cairn" or "the Company")

Positive well results offshore Senegal

Fourth well to commence shortly

Cairn is pleased to announce further exploration and appraisal success in its latest well in the ongoing evaluation programme offshore Senegal. The BEL-1 well was targeting the Bellatrix exploration prospect and appraising the northern extent of the SNE field discovered in 2014. Based on the positive campaign results to date, the Joint Venture (JV) has agreed a fourth well location, SNE-4, which will commence operations shortly.

BEL-1 Exploration Target:

Ø The main exploration objective zones are tight gas-bearing sandstones that are not of productive reservoir quality

Ø Two good quality gas-bearing sand reservoirs (combined net thickness of 8 metres (m)) were encountered between the Bellatrix main objective and deeper SNE appraisal objective

BEL-1 Appraisal Target:

Ø Confirms the extension of reservoirs in the northern area of the SNE field

Ø Good quality reservoir sands encountered within the Upper Reservoirs

Ø Good correlation and presence of the principal reservoir units between SNE-1, SNE-2, SNE-3 and BEL-1 over a distance of more than 9 kilometres (km)

Ø Gas-Oil and Oil-Water depths indicate an oil column of ~100m gross at BEL-1 similar to  SNE-1, SNE-1 and SNE-3

Ø 144m of continuous core taken across the entire oil reservoir interval with 100% recovery

Ø Multiple samples of gas, oil and water recovered to the surface

Ø Initial measurements show similar oil quality as seen in SNE-1, SNE-2 and SNE-3, with higher oil density towards the base of the column

The BEL-1 well targeted a shallower 'buried hill" exploration play which is one of multiple exploration play types that have been identified across the block.  The BEL-1 well exploration results confirm the presence of shallower regionally extensive reservoirs also encountered in the SNE-3 well more than 9 km away.  These well results, along with the latest 3D seismic acquired in Q4 2015, will be incorporated into block wide remapping to look at possible new plays and down-dip oil potentially associated with the shallower reservoirs.  

In light of the success of the ongoing appraisal programme, the JV has agreed that the Ocean Rig Athena will now drill SNE-4, located 5km south-east of the SNE-1 discovery well, to appraise the eastern extent of the field and aiming to confirm the nature of the upper reservoirs in the oil zone.

Cairn Energy PLC Chief Executive Simon Thomson said:

"The drilling programme in Senegal continues to provide positive evidence of the scale and extent of the SNE field.

The BEL-1 appraisal results have provided definitive information confirming the northern extent of the high quality reservoirs seen in the other wells and demonstrated an increased oil column in this area of the field.

Operations have been safely and successfully completed and significant data gathered to help the joint venture partners establish the ultimate size of the significant resource base. The evaluation programme continues with the SNE-4 well."

http://www.rns-pdf.londonstockexchange.com/rns/7222U_-2016-4-11.pdf

Notes to Editors

Operations have been safely and successfully completed following drilling, coring and logging and the well is now being plugged and abandoned before the rig moves to a fourth well, SNE-4. The BEL-1 well was drilled by the Ocean Rig Athena, located in 1,032m water depth approximately 90km offshore in the Sangomar Deep Offshore block and reached the planned total depth (TD) of 2,742m below sea level (TVDSS).  The well was targeting the Bellatrix exploration prospect and also appraising the northern extent of the underlying field containing the 2014 discovery of high quality oil in the SNE-1 well.​

Cairn resource estimates of the SNE-1 discovery were recently upgraded following incorporation of the SNE-2 well results announced in January to 1C 200mmbbls, 2C 385mmbbls and 3C 690mmbbls. Further resource revisions following the full analysis of the results of SNE-3, BEL-1 and SNE-4 will be announced in due course. 

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% WI. 

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 exploration acreage in the UK & Norway, North West Africa and North Atlantic, 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       

Enquiries: Analysts/Investors David Nisbet, Corporate Affairs	Tel: 0131 475 3000
Media Patrick Handley, David Litterick Brunswick Group LLP	Tel: 0207 404 5959

This information is provided by RNS

The company news service from the London Stock Exchange

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