Malcy says better than expected... Cairn/FAR Cairn, as operator...

Malcy says better than expected...

Cairn/FAR
Cairn, as operator has announced the results of the SNE North-1 exploration well this morning and it looks like  incredibly good news all round. They have discovered oil and gas in the primary objective and oil in the deeper secondary objective which is a separate accumulation to the SNE field and thus very important. The company say that this is positive for the hydrocarbon potential north of the structural trend and ‘broadens exploration potential’. A 24m gross hydrocarbon column is indicated over three intervals with 11m of net condensate and gas in the primary objective and 4m of oil in the secondary objective, importantly below the SNE oil water contact.

Finally the crude oil quality at 35° API is slightly lighter than from the SNE field. Overall this well could provide enough new data to significantly upgrade the prospects and this should enable the partners to progress the SNE field development. This well marks the end of this campaign with the drill bit, it has been better than could have been expected and will without doubt lead to an increase in contingent resources in the area.