19th May 2016 07:02
LONDON (Alliance News) - Cairn Energy PLC continued to progress its successful exploration and approasal work in Senegal on Thursday after the company said the latest well has encountered an oil column that is similar to other discoveries in the region.
"We have now drilled four successful appraisal wells in Senegal and we are delighted with the results to date of the multi-well evaluation programme, which has confirmed the scale and potential of this world class asset," said Chief Executive Simon Thomson.
The company said the SNE-4 well hit a gross oil column of around 100.0 metres, which is similar to the results from the previous wells to be drilled on the SNE field; SNE-1, 2, 3 and BEL-1.
The SNE-4 well has also confirmed the reservoirs extend in the eastern area of the field, more than 5.0 kilometres to the east and down-dip of SNE-3. The well also confirmed the upper reservoir sands that are oil bearing are of a similar quality as the gas bearing reservoirs elsewhere in the field.
Cairn is now confident that the main reservoir units within the SNE field are correlated between all of the wells on the field, and the company said it has now taken 108.0 metres of continious core with an initial recovery rate of 100%. Multiple samples of gas, oil and water have been recovered to the surface.
"Operations in Senegal have been safely conducted and are ahead of schedule and substantially under budget. We have gathered a very large volume of data from operations to date and we look forward to progressing our long-term, multi-field, multi-phase exploitation plan to maximise value in Senegal," said Thomson.
"We see clear potential to access additional cost savings from the current lower operating environment in respect of planned future activity," he added.
The SNE-4 well is the sixth well to be drilled by Cairn and its joint venture partner on the SNE field and the fourth one to have been drilled this year as part of a multi-well evaluation programme. The joint venture will now analyse the data from the four wells drilled this year to plan further appraisal work and to determine the best option for developing the asset.
By Joshua Warner; [email protected]; @JoshAlliance
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