G/A ,GREAT NEWS OUT FOR FAR IN AUSSIE MARKET = PCOGF GOING HIGHER !imo far WILL RUN TO .18-.20 THEN SETTLE @ .15
PCOGF SHOULD GO TO .10 THEN CLOSED .075-.08 THIS WEEK !
7 October, 2014
Cairn together with its joint venture partners is pleased to announce that the FAN-1 exploration well, offshore Senegal, has discovered oil.
The well, located in 1,427 metres (m) water depth and approximately 100 kilometres offshore in the Sangomar Deep block, has reached a Target Depth (TD) of 4,927 m and was targeting multiple stacked deepwater fans.
Preliminary analysis indicates:
•29m of net oil bearing reservoir in Cretaceous sandstones
•No water contact was encountered in a gross oil bearing interval of more than 500m
•Distinct oils types ranging from 28° API up to 41° API indicated so far from a number of oil samples recovered to surface
•Initial gross STOIIP estimates for the FAN-1 well range from P90, 250 mmbbls, P50, 950 mmbbls to P10, 2,500 mmbbls and are broadly in line with pre-drill STOIIP estimates
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.
Once operations are completed on the FAN-1 well, the rig will move to complete the second well, SNE-1 where the top hole has been drilled pending re-entry. This Shelf Edge Prospect targeting a dual objective in 1,100m water depth is in the Sangomar Deep block.
The FAN-1 well was drilled using the semi-submersible drilling unit "Cajun Express". It is the third well in Cairn's North West Africa programme and first in Senegal.
Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) ConocoPhillips has 35% WI, FAR Ltd 15% WI and Petrosen, the national oil company of Senegal 10% WI. The three blocks cover 7,490 km2.
Simon Thomson CEO Cairn Energy PLC said;
"The oil discovered in the FAN-1 prospect is an important event for Senegal and the Joint Venture.
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.
Work is already underway with the Joint Venture partners to determine follow up activity which is targeted for 2015 onwards.
Cairn looks forward to working with the Government of Senegal and our partners to realise the full potential from this large acreage position off the West coast of Senegal."