10th Nov 2014 08:11
LONDON (Alliance News) - Cairn Energy PLC saw its shares rise at the open Monday after it announced it has made a second oil discovery in its exploration programme offshore Senegal.
Cairn shares were up 12% to 176.20 pence per share Monday morning.
The second well, SNE-1, is in the Sangomar offshore block, with a target depth of 3,000 metres to target the Shelf Edge prospect.
Intermediate logging at the well has confirmed the presence of hydrocarbons that are similar to the oil discovery made at its first well, FAN-1, it said in a statement.
Results from the SNE-1 well shows a 95 metre gross oil bearing column with a net oil pay of 36 metres. Preliminary estimates for the contingent resource range from 150 million barrels of oil to 670 million barrels of oil. Further evaluation is being carried out at the well, and the company is hoping to reach lower targets as it continues drilling.
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, said Cairn in a statement.
"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," said Chief Executive Simon Thomson.
Cairn has a 40% working interest in three blocks offshore Senegal including Sangomar Deep, Sangomar Offshore and Rufisque. ConocoPhillips has a 35% working interest, FAR Ltd holds 15%, and Petrosen, the national oil company of Senegal, holds the remaining 10%.
By Joshua Warner; [email protected]; @JoshAlliance
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