7th Oct 2014 06:25
LONDON (Alliance News) - Cairn Energy PLC Tuesday said that oil has been discovered in an exploration well offshore Senegal that it has a 40% working interest in, and it thinks it may have significant potential as a standalone discovery as well as raising the potential of a wider block.
In a statement, the oil company said preliminary analysis of results from the FAN-1 exploration well showed 29 metres of net oil bearing reservoir in the Cretaceous sandstones. The drilling made no contact with any water in a gross oil bearing interval of more than 500 metres.
The well is located in 1,427 metres water depth and approximately 100 kilometres offshore in the Sangomar Deep block. It has reached a target depth of 4,927 metres and was targeting multiple stacked deepwater fans.
Cairn has a 40% working interest in three blocks offshore Senegal - Sangomar Deep, Sangomar Offshore and Rusifique - ConocoPhillips has a 35% working interest, FAR Ltd a 15% working interest and Petrosen, the national oil company of Senegal, a 10% working interest. The three blocks cover 7,490 square kilomtres.
"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," Cairn said in a statement.
The preliminary analysis showed distinct oils types ranging from 28° API up to 41° API, Cairn said, and initial gross stock tank oil-initially-in-place estimates for the FAN-1 well range from 250 million barrels P90, 950 million barrels P50, 2,500 million barrels to P10, broadly in line with pre-drill stock tank oil-initially-in-place estimates.
"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," Chief Executive Simon Thomson said.
"Work is already underway with the Joint Venture partners to determine follow up activity which is targeted for 2015 onwards," he added.
By Steve McGrath; [email protected]; @stevemcgrath1
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