Morocco Operational Update

RNS Number : 0915W

Cairn Energy PLC

20 December 2013

 



                                                                                                                     20 December 2013

CAIRN ENERGY PLC
("Cairn" or "the Company")
Morocco Operational Update

FD-1 wildcat exploration well to be plugged and abandoned

The following operational update relates to Cairn's 2013/14 exploration drilling campaign offshore Morocco where drilling operations commenced in late October 2013.

The FD-1 exploration well is located in 1,500 metres (m) of water approximately 120km offshore Morocco in the Foum Draa block (Cairn 50% Working Interest (WI) and Operator). The primary target of the well was a Late Jurassic/Early Cretaceous deep-water turbidite slope fan and channel complex. 

The FD-1 well has reached a Total Depth of 5,255m but has not encountered clastic reservoirs, although it has penetrated the oldest stratigraphic section of any deep water exploration well along the Moroccan margin. Gas shows and gas composition ratios encountered in the well have confirmed an active thermogenic petroleum system. The well is now being plugged and abandoned.

Cairn is the Operator through its wholly owned subsidiary Capricorn Exploration and Development Limited with Joint Venture partners ONHYM, San Leon Energy plc, Serica Energy plc and Longreach Oil & Gas Limited.

The next well in Cairn's planned exploration programme is in the Juby Maritime III block in Morocco (Cairn 37.5% WI, Operator) and it will target a Middle Jurassic carbonate prospect located in 100m of water where the primary objective is some 1,000m below the 1969 Cap Juby oil discovery in the Upper Jurassic. Operations will commence on Cap Juby once the FD-1 well has been successfully plugged and abandoned.

Simon Thomson, Chief Executive, Cairn Energy PLC said:

"Cairn's first well in a multi-well operated drilling programme in the Atlantic Margin did not encounter the target reservoirs but has confirmed a deep water hydrocarbon system.

Further analysis of the data is required as a number of follow up exploration prospects on the Foum Draa block need to be evaluated.

We look forward to commencing operations in the Juby Maritime well in the near future."

Enquiries:

Analysts/Investors

David Nisbet, Corporate Affairs                                                          Tel: [phone]

Media

Patrick Handley, David Litterick                                                          Tel: [phone]

Brunswick Group LLP

NOTES TO EDITORS

Cairn Energy PLC ("Cairn") is one of Europe's leading independent oil and gas exploration and development companies and is listed on the London Stock Exchange. Cairn has discovered and developed oil and gas reserves in a variety of locations around the world. The Company historically focussed its activities on the geographic region of South Asia where it operated for more than 20 years.  During this time it discovered, developed and produced oil and gas both offshore and onshore in Bangladesh and India and made more than 40 significant discoveries.  In particular, Cairn made a major oil discovery in Rajasthan in the north west of India at the beginning of 2004 where over 25 discoveries have since been made with the potential to provide more than 30% of India's crude oil production.  Today, Cairn continues to hold an approximate 10% shareholding in Cairn India Limited. Cairn's business operations are now focused on frontier exploration acreage in Morocco, Senegal, Republic of Ireland, Greenland, Mauritania and the Mediterranean along with exploration and pre-development interests in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Greenland, Norway, Spain, Morocco and Senegal. 

Cairn and Corporate Responsibility

Ø Cairn is a signatory to the UN Global Compact and our core values of respect, responsibility, relationships and our commitments towards people, the environment and society are enshrined in our Business Principles, which are available on the Cairn website at http://www.cairnenergy.com/index.asp?pageid=282

Ø Cairn became a participating company in the Extractive Industry Transparency Initiative (EITI) in September 2013. The EITI is a coalition of governments, companies and civil society, who have adopted a multi-stakeholder approach to applying the EITI global standard promoting transparency of payments in the oil, gas and mining sectors http://eiti.org/

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

 

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