Carnaby Appraisal Well

RNS Number : 7252E

Cairn Energy PLC

06 June 2012

 



                                                                                                                                       6 June 2012

CAIRN ENERGY PLC

("Cairn" or the "Company")

Carnaby Appraisal Well

The enclosed announcement has been issued by Premier Oil plc (50%; Operator) with regard to the Carnaby Well in the UK North Sea in which Cairn through its fully-owned subsidiary Agora Oil and Gas AS has a 15% interest.

Enquiries:

Analysts/Investors Simon Thomson, Chief Executive Jann Brown, Managing Director & CFO Mike Watts, Deputy Chief Executive David Nisbet, Corporate Affairs	Tel: [phone]
Media Patrick Handley, David Litterick Brunswick Group LLP	Tel: [phone]

NOTES TO EDITORS

Agora Oil & Gas

Ø Agora is now 100% owned by Cairn

Ø Formed in October 2009 by the former management team of Revus Energy ASA and based in Stavanger, Norway.  Agora has focused on creating exploration and appraisal value in mature parts of the North Sea in areas of low-moderate geological and operational risk.

Ø Agora Gross Assets were NOK 717,941,000 which at 31 December equated to $120,101,208.  The Group had no profits for the year.  Loss for the year was NOK 50,347,000 or $8,978,700.

Ø Agora's Board of Directors is led by Chairman Andrew Armour and Chief Executive Svein Ilebekk.  The senior management team includes Tim Sullivan (Deputy CEO and UK Manager), Chris Elliott (Exploration Manager), Erik Samuelsen (Commercial Manager), Ingrid Landråk (Chief Financial Officer) and Callum Smyth (HSE & Operational Manager). 

Ø Agora has 15 employees who are based in Stavanger and the UK.

Cairn Energy PLC

Ø Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange.

Ø "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries as appropriate.

Ø Cairn currently holds approximately 22% of the issued share capital of Cairn India Limited (CIL).  Production from CIL's Rajasthan operations is 175,000 bopd.

Ø Cairn Energy PLC (including Capricorn) is run from Edinburgh with operational offices in Kathmandu, Nuuk, Madrid and Stavanger.

Cairn in Greenland 

Ø Cairn through its subsidiary, Capricorn, operates 11 blocks offshore Greenland.

Ø Cairn carried out extensive Environmental and Social Impact Assessments to identify how potential environmental and social impacts of its drilling programme can be avoided or mitigated.

Ø A total of 14 exploration wells have been drilled offshore Greenland to date, five of which were drilled in the 1970s, one in 2000, three in 2010 by Cairn Energy and five by Cairn Energy in 2011.

For further information on Cairn please see: www.cairnenergy.com 

PREMIER OIL plc

("Premier" or "the Company")

Carnaby Oil Discovery

6 June 2012

Premier is pleased to announce that the Carnaby exploration well 28/09-5A (Premier equity 50 per cent) has reached a total depth of 4,695 feet and encountered oil.

Initial analysis indicates that the well encountered 51 feet of net oil in the main Tay sandstone within an estimated 86 feet oil column. A core was taken and confirmed oil in excellent quality sandstones. Pressure data and sampling indicates that the API of the oil is 24 degrees and is of similar quality to that established at the nearby Catcher discoveries.  The oil water contact was at the shallower end of expectation; driven by the more complex geology associated with this type of footwall prospect.  The well also encountered 51 feet of Cromarty sands but these were shown to be water wet on the logs.

The high quality data acquisition from the well will now be used to determine what contribution the Carnaby discovery will make to the overall Catcher development.  The well will be plugged and abandoned ahead of the rig moving to drill the high risk Coaster prospect on Block 28/10a, immediately east of the Catcher acreage.

Simon Lockett, Chief Executive Officer, commented:

"The discovery of good quality oil in the western part of the block is encouraging and the results from the Carnaby well will be used to calibrate the remaining exploration potential in this part of the block. In addition, the data from the Carnaby well will contribute to the ongoing development planning for the Catcher Area which continues to move forward focusing on the production of oil from the previous discoveries on Block 28/9a."

Enquiries

Premier Oil plc                                                                 020 7730 1111

Simon Lockett

Andrew Lodge

Pelham Bell Pottinger PR                                             020 7861 3232

Gavin Davis

Henry Lerwill

 

END

 

 

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