CAPRICORN ENERGY PLC

Regulatory Filings • Oct 7, 2014

National Storage Mechanism | Additional information

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RNS Number : 5836T

Cairn Energy PLC

07 October 2014

For Immediate Release                                                                                  7 October 2014

CAIRN ENERGY PLC

("Cairn" or "Company" or "Group")

Oil discovered offshore Senegal

Cairn together with its joint venture partners is pleased to announce that the FAN-1 exploration well, offshore Senegal, has discovered oil.

The well, located in 1,427 metres (m) water depth and approximately 100 kilometres offshore in the Sangomar Deep block, has reached a Target Depth (TD) of 4,927 m and was targeting multiple stacked deepwater fans. 

Preliminary analysis indicates:

Ø 29m of net oil bearing reservoir in Cretaceous sandstones  

Ø No water contact was encountered in a gross oil bearing interval of more than 500m

Ø Distinct oils types ranging from 28° API up to 41° API  indicated so far from a number of oil samples recovered to surface

Ø Initial gross STOIIP estimates for the FAN-1 well range from P90, 250 mmbbls, P50, 950 mmbbls to P10, 2,500 mmbbls and are broadly in line with pre-drill STOIIP estimates

As stated prior to the commencement of operations there are no plans for immediate well testing. Further evaluation will now be required to calibrate the well with the existing 3D seismic in order to determine future plans and optimal follow up locations to determine the extent of the discovered resource.

Once operations are completed on the FAN-1 well, the rig will move to complete the second well, SNE-1 where the top hole has been drilled pending re-entry. This Shelf Edge Prospect targeting a dual objective in 1,100m water depth is in the Sangomar Deep block.

The FAN-1 well was drilled using the semi-submersible drilling unit "Cajun Express".  It is the third well in Cairn's North West Africa programme and first in Senegal. 

Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) ConocoPhillips has 35% WI, FAR Ltd 15% WI and Petrosen, the national oil company of Senegal 10% WI. The three blocks cover 7,490 km2.

Simon Thomson CEO Cairn Energy PLC said;

"The oil discovered in the FAN-1 prospect is an important event for Senegal and the Joint Venture.

We have encountered a very substantial oil bearing interval which may have significant potential as a standalone discovery. Furthermore, this result materially upgrades the prospectivity of the block with a proven petroleum system and a number of deep fan and shelf prospects established.

Work is already underway with the Joint Venture partners to determine follow up activity which is targeted for 2015 onwards.

Cairn looks forward to working with the Government of Senegal and our partners to realise the full potential from this large acreage position off the West coast of Senegal."

Enquiries:

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" or the "Group" or the "Company") 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 focused on exploration acreage in North West Europe, North West Africa, North Atlantic and the 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, Spain 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

The company news service from the London Stock Exchange

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