UK Norway Update - discovery and farm out
Cairn announces the following;
Based on preliminary analysis, the Operator estimates the Agar-Plantain discovery holds recoverable resources of 15 - 50 million barrels of oil equivalent (mmboe).
The discovery is located in close proximity to existing infrastructure, located 12 kilometres (km) from the Beryl Bravo facility to the southwest and 14km from the Alvheim FPSO to the southeast.
Further evaluation of development options to establish commerciality will be undertaken by the joint venture partners in the coming months.
The initial 9/14a-17B well on the Agar-Plantain Prospect was drilled safely to the target depth and encountered excellent quality oil and water bearing sands. The wellbore delineated the eastern extent of the hydrocarbon discovery and the partners agreed to drill the contingent side-track to further appraise the discovery. The Agar side-track encountered a 20 metre gross interval of very high quality oil bearing sands.
Cairn has an option to take over Operatorship with respect to future activity on the Agar-Plantain project. The Agar-Plantain well is currently being plugged and abandoned by Operator Azinor Catalyst. Working interests in the well are: Azinor Catalyst (Operator) 25%, Cairn 50% and Faroe Petroleum 25%.
The commitment exploration well on licence P2184 in the UK North Sea targeting the Ekland prospect (Cairn Operator, 45% WI) failed to encounter commercial hydrocarbons and has been plugged and abandoned.
Cairn is pleased to announce that it has entered into a farm out agreement for a 40% non-operated interest in Licence P2312 (Cairn Operator, 100% WI) containing the Chimera prospect targeting 154 gross mmboe mean resource ( 92 mmboe net) in the UK North Sea with plans to drill a well in H2 2019. The farm out agreement is conditional upon regulatory consent.
The next well in Cairn's exploration programme will be Presto (formerly Stjerneskudd) (Cairn 30% WI) on PL885 in the Norwegian North Sea, targeting 160 gross mmboe mean resource (48 mmboe net) with standalone potential and significant follow on potential with success. The well is expected to spud in late December 2018 by Operator Equinor.