27th Oct 2008 16:08
FOR IMMEDIATE RELEASE
27 October 2008
Cairn Energy PLC ("Cairn")
Frontier acreage acquired Offshore Southern Greenland
Cairn has secured interests in two frontier hydrocarbon exploration licences offshore southern Greenland
through its exploration focused arm Capricorn.
Capricorn has been awarded a 92% operated interest in the Cape Farewell 1 and 2 blocks offshore southern Greenland. The remaining interest in each of these blocks is held by Nunaoil A/S, the national oil company of Greenland. Each block has a seismic acquisition obligation in the first phase of the exploration period.
The total combined area of these two blocks is 20, 072 square kilometres and water depths range from approximately 50 metres to 2,200 metres.
Very little data is presently available offshore southern Greenland and the blocks announced today form part of Capricorn's reconnaissance exploration strategy for this area. Capricorn is planning to acquire around 1,780 km of 2D seismic over the Cape Farewell 1 and 2 blocks.
Capricorn also holds interests in the central (low Arctic) and southern (sub Arctic) parts of the west Greenland basin.
http://www.rns-pdf.londonstockexchange.com/rns/7798G_-2008-10-27.pdf
Enquiries to:
Analysts/Investors
Cairn Energy PLC:
Dr Mike Watts, Exploration & New Business Director
Jann Brown, Finance Director
Simon Thomson, Legal & Commercial Director
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Brunswick Group Limited:
Patrick Handley, Camilla Gore Tel: 0207 404 5959
NOTES TO EDITORS
Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange. Following the IPO of Cairn India in January 2007, there are two separate arms to the business:
Cairn India limited ("Cairn India") is now an autonomous business listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 14 India and Sri Lanka acreage blocks. Cairn currently retains a 65% interest in Cairn India.
Capricorn Oil Limited ("Capricorn"), a subsidiary of Cairn is the exploration focused arm. Capricorn now has assets in Bangladesh, Nepal, Northern India, Greenland, Tunisia, Albania, and pending licence awards in Sicily.
"Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India and Capricorn), as appropriate.
"Capricorn" where referred to in this release means Capricorn Oil Limited and/or its subsidiaries as appropriate.
Greenland has been identified by the United States Geological Survey (USGS) as a potentially very prospective frontier country. The offshore geological basins in the west, north and east of Greenland are at a very early stage of evaluation and the Danish and Greenlandic authorities are in the process of gradually opening up the Arctic areas of these basins to the industry through competitive bid rounds. The only offshore drilling to date however has been in a part of the west Greenland basin where five wells were drilled in the 1970s (two low Arctic and three sub-Arctic) and one well drilled in 2000 (sub-Arctic).
Capricorn has recently completed a 6,600 km 2D seismic survey in the Disko West blocks Sigguk and Eqqua.
The seismic vessel has now started to acquire around 1200 km of 2D seismic in the southern Kingittoq and Saqqamuit blocks.
A Controlled Source Electromagnetic Survey has been completed over the Lady Franklin and Atammik blocks operated by EnCana and the data is currently being processed.
The blocks, percentage interests and total acreage Capricorn now holds offshore west Greenland are as follows:-
|
Licence and Block Name |
% Working Interest |
Acreage in Square kilometres |
|
Exclusive Licence 2008/10 (Sigguk) |
87.50 |
11,033 |
|
Exclusive Licence 2008/11 (Eqqua) |
87.50 |
11,991 |
|
Exclusive Licence 2008/13 (Saqqamiut) |
92.00 |
10,122 |
|
Exclusive Licence 2008/14 (Kingittoq) |
92.00 |
11,937 |
|
Exclusive Licence 2009/10 (Cape Farewell 1) |
92.00 |
9,929 |
|
Exclusive Licence 2009/11 (Cape Farewell 2) |
92.00 |
10,165 |
|
Exclusive Licence 2002/15 (Atammik) |
40.00 |
3,981 |
|
Exclusive Licence 2005/06 (Lady Franklin) |
40.00 |
2,898 |
Related Shares:
Capricorn Energy PLC