Cairn Hits Oil Off Senegal
- Business & Finance
Cairn has made a discovery of high quality oil in the second well in the Senegal exploration programme.
The SNE-1 well is located in 1,100 metres (m) water depth and approximately 100 kilometres (km) offshore in the Sangomar Offshore block with a target depth of ~3,000 m and targeting the Shelf Edge Prospect.
Intermediate logging of the SNE-1 well has confirmed hydrocarbons in the Cretaceous clastics objective which is of similar age to oil bearing sands found approximately 24 km away in FAN-1.
As operator, Cairn has now issued Notices of Discovery for the SNE-1 well and FAN-1 well to the Government of Senegal on behalf of the Joint Venture.
Further evaluation of this zone is continuing. The deeper target of karstified and fractured Lower Cretaceous shelf carbonates is yet to be reached. A further announcement will be issued once operations are completed on SNE-1.
The results of the FAN-1 well and the final analysis from the SNE-1 well will be used to decide optimal follow up locations to determine the extent of the hydrocarbon accumulations and additional activity which is targeted for 2015 onwards.
Cairn Energy Chief Executive, Simon Thomson, said: “This is a significant oil find for Cairn and Senegal and based on preliminary estimates is a commercial discovery and opens a new basin on the Atlantic Margin.
“On completion of the SNE-1 well the joint venture along with the authorities in Senegal will evaluate all of the information to understand how best to take forward these basin opening discoveries with an appraisal drilling programme in 2015.
“Cairn has additional prospects and leads that offer further exploration potential across this large acreage position in West Africa.”
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.