TIDMCNE
RNS Number : 4723F
Cairn Energy PLC
18 May 2017
EMBARGOED FOR RELEASE AT 7AM 18 May 2017
CAIRN ENERGY PLC ("Cairn" or "the Company")
Senegal SNE-6 Appraisal Well result
Cairn is pleased to announce the results of another successful
appraisal well offshore Senegal. Rig performance continues to be
excellent and operations have been safely and successfully
completed ahead of schedule and under budget following drilling,
logging and drill stem testing (DST).
The objective of the SNE-6 well, together with the previous
successful SNE-5 well, was to flow oil from one of the principal
units in the upper (400 series) reservoirs and demonstrate
connectivity between the two wells. Pressure data from SNE-6
immediately confirmed good connectivity with SNE-5 and accordingly
a short DST was performed.
Cairn's analysis and integration of the collected dataset is
continuing with initial results as follows:
Ø Main reservoir units, pressure data and fluid contacts are in
line with previous SNE appraisal wells
Ø Multiple samples of oil were recovered during the DST:
Analysis indicates oil of similar quality to previous wells
Ø Two DSTs were conducted within the Upper Reservoir units, as
follows:
Ø DST#1A flowed from an 11m interval at a maximum rate of 4,600
barrels of oil per day (bopd) on a 60/64" choke. A 48 hour main
flow period was performed at 3,700 bopd on a 52/64" choke.
Ø For DST#1B an additional 12m zone was added and the well
flowed at a maximum rate of 5,400 bopd on a 76/64" choke, followed
by a 24 hour flow at an average rate of
4,700 bopd on a 64/64" choke.
Ø Pressure data from SNE-6 has confirmed that the upper
reservoir is connected with SNE-5, 1.6km away. Work is ongoing to
integrate this new data and to estimate the extent to which water
flood secondary recovery can be applied to these upper reservoirs.
Further analysis will be performed once interference test data has
been collected from the observation wells, to determine the impact
on modelled reservoir architecture, recoverable resource base and
forward development plan. We expect to provide further information
at our half year results in August.
Simon Thomson, Chief Executive Cairn Energy PLC, said:
"This is our ninth successful well in Senegal in three years.
The results from this latest well together with SNE-5 and VR-1
provide essential data as we move towards submitting a development
plan for the SNE field to the Government of Senegal in 2018.
Operations now move to FAN SOUTH as we continue to test
significant further prospectivity in the extensive acreage
position."
SNE-6 is being plugged and abandoned and the Stena DrillMAX
drill ship is moving location to commence operations at the FAN
SOUTH exploration well, 20km south west of the SNE-3 well in 2,175m
water depth. FAN SOUTH is targeting a mean prospective resource of
more than 110 mmbbls with dual prospects; an Upper Cretaceous
stacked multi-layer channelized turbidite fan prospect and a Lower
Cretaceous base of slope turbidite fan prospect, which is
equivalent to the FAN-1 2014 oil discovery.
Please click here to view announcement including map
http://www.rns-pdf.londonstockexchange.com/rns/4723F_-2017-5-17.pdf
Enquiries to:
Analysts / Investors
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Linda Bain, Christian Goodbody Tel: 0131 475 3000
Cairn Energy PLC
Patrick Handley, David Litterick
Brunswick Group LLP Tel: 0207 404 5959
NOTES TO EDITORS
The Senegal JV has now drilled nine wells in three years; with
two basin opening discoveries in the first 12 months of operation
in 2014, followed by four wells completed ahead of schedule and
under budget in 2016. Cairn then announced a contingent resource
upgrade with gross oil in place on SNE of more than 2.7 billion
barrels. The third phase of drilling commenced in January 2017 with
a further three wells evaluating the SNE discovery.
Cairn has a 40% Working Interest (WI) in three blocks offshore
Senegal (Sangomar Deep, Sangomar Offshore and Rufisque), Woodside
has 35% WI, FAR Ltd 15% WI and PETROSEN, the national oil company
of Senegal 10% WI.
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 focused on frontier exploration
acreage in North West Europe, North West Africa and the 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
This information is provided by RNS
The company news service from the London Stock Exchange
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