10th Jan 2008 07:00
Cairn Energy PLC10 January 2008 EMBARGOED FOR RELEASE AT 0700 10 January 2008 Cairn Energy PLC ("Cairn") Capricorn Acquires an Interest in Six Blocks Offshore West Greenland Cairn announces that it has secured interests in a total of six hydrocarbonlicences offshore west Greenland through its exploration focused arm Capricorn. The total combined area covered by these licences is approximately 52,000 km2,which is equivalent to 231 North Sea blocks. Water depths in the blocks rangefrom 300 metres to 1,400 metres. • Capricorn has been awarded an 87.5% operated interest in two blocks(Sigguk and Eqqua) in the Disko West Licensing Round and a 92% operated interestin a further two blocks (Kingittoq and Saqqamuit) in the Open Door Area. Theremaining interests in each of these four blocks are held by Nunaoil A/S, thenational oil company of Greenland. Each block has a seismic acquisitionobligation in the first phase of the exploration period. • In addition to the above awards, Capricorn has acquired a 40%non-operated interest in two other blocks (Atammik and Lady Franklin) offshorewest Greenland from EnCana Corporation ("EnCana"). The remaining interests inthese two blocks are held by EnCana (47.50% and operator) and Nunaoil A/S(12.5%). Only six offshore wells have been drilled in Greenland to date, one in 2000 andthe rest in the 1970s. Further details of Capricorn's activities in Greenlandwill be provided in the preliminary results announcement to be made on 27 March2008. Dr Mike Watts, Exploration and New Business Director of Cairn, and ChiefExecutive of Capricorn, commented: "We are delighted to have secured an interest in these six exploration blocks.Greenland is a true frontier country where oil and gas exploration is at anembryonic stage. We look forward to working closely with the authorities and ourjoint venture partners in Greenland as we commence our work programmeactivities." Enquiries to: Analysts/Investors Capricorn Energy Limited: Dr Mike Watts, Chief Executive Jann Brown, Finance Director Simon Thomson, Legal & Commercial Director Tel: 0131 475 3000 Media Brunswick Group Limited: Patrick Handley, Mark Antelme, Camilla Gore Tel: 0207 404 5959 Notes to Editors: 1. Capricorn where referred to in this announcement means Capricorn EnergyLimited and/or its subsidiaries as appropriate. 2. Capricorn Energy Limited is a subsidiary of Cairn Energy PLC based inEdinburgh. 3. The blocks and percentage interests Capricorn now holds offshore westGreenland are as follows:- Licence and Block Name % Working Interest Exclusive Licence 2008/10 (Sigguk) 87.50Exclusive Licence 2008/11 (Eqqua) 87.50Exclusive Licence 2008/13 (Saqqamiut) 92.00Exclusive Licence 2008/14 (Kingittoq) 92.00Exclusive Licence 2002/15 (Atammik) 40.00Exclusive Licence 2005/06 (Lady Franklin) 40.00 4. The Disko West Licensing Round is a competitive exploration licensing round held by the Greenland authorities comprising eight blocks offshore Disko Island in west Greenland. 5. The Open Door Area is an area outwith the above mentioned competitivelicensing round. 6. Capricorn now has assets in Bangladesh, Nepal, Northern India, Greenland, Tunisia, Peru, UK (West of Shetlands), Albania, Australia, and pending licenceawards in Spain and Sicily. 7. EnCana is a leading North American unconventional natural gas andintegrated oilsands company. EnCana acquired an interest in two explorationlicences in the Offshore West Greenland Bid Rounds in 2002 and 2004respectively. 8. A signing ceremony speech and presentation made by Dr Mike Watts and aspeech made by Minister for Minerals and Petroleum Kim Kielsen are available onCairn's website at www.cairn-energy.plc.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Capricorn Energy PLC