FAR's announcement

Successful Senegal Appraisal Well
4 January, 2016
Cairn is pleased to announce the successful testing of the SNE-2 appraisal well offshore Senegal with positive results. Operations have been safely and successfully completed following drilling, coring, logging and drill-stem testing (DST). The well is now being plugged and abandoned.
Following this first successful appraisal well, resource estimates for the SNE field will be fully revised and announced after the results of the further appraisal activity. Evaluation of the extensive dataset collected is continuing, with preliminary analysis focused on the DST:
DST over a 12 metre (m) interval of high quality pay flowed at a maximum stabilised, but constrained rate of ~8,000bopd on a 48/64” choke, confirming the high deliverability of the principal reservoir unit in the SNE-2 well
DST over a 15m interval (~3.5m net) of relatively low quality “heterolithic” pay flowed at a maximum rate of ~1,000 bopd on a 24/64” choke, confirming that these reservoirs are able to produce at viable rates and thus make a material contribution to resource volumes. Flow was unstable due to the 4.5” DST tubing
Multiple samples of oil and gas recovered to surface from wireline logs and drill stem tests
Confirmation of correlation of the principle reservoir units between SNE-1 and SNE-2 with the primary reservoirs occurring in the gas cap as predicted
216m of continuous core taken across the entire reservoir interval with 100% recovery
Similar oil-down-to and oil–up-to depths seen in SNE-1 - 103m gross (95m in SNE-1)
Pressure, log and seismic data indicate that the hydrocarbon column contains limited segregated reservoir-seal pairs within a continuous connected pressure regime
Initial indications confirm the same 32 degree API oil quality as seen in SNE-1
The SNE- 2 well is located in 1,200m water depth and is approximately 100 kilometres (km) offshore in the Sangomar Offshore block, reached the planned total depth (TD) of 2,800m below sea level (TVDSS). The well has been appraising the 2014 discovery of high quality oil in the SNE-1 well, some 3 km to the south.
Cairn Energy Chief Executive Simon Thomson said:
"We are delighted with the results of the SNE-2 well and in particular the well tests, which are significant in demonstrating the ability of the reservoirs to flow at commercially viable rates. The results help to confirm the overall scale and extent of the resource base in Senegal and further appraisal activity is expected to lead to future revision of the estimates. We now eagerly look forward to the results of the SNE-3 well.

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