http://www.*.co.uk/companies/market_reports/1099...

http://www.*.co.uk/companies/market...nd-half-could-be-transformational-109984.html

06:29 16 Aug 2015
Deutsche Bank said the timing and drilling locations for three wells in Senegal could be unveiled. While they are in deep waters off the coast of west Africa, they aren’t technically challenging.

Cairn energy is in the spotlight...
Deutsche Bank previewed next Tuesday’s interims from Cairn Energy (LON:CNE) – though the numbers are likely to play second-fiddle to an update on its exploration plans.

As Deutsche points out, the second-half-weighted programme could be transformational.

It said the timing and drilling locations for three wells in Senegal could be unveiled. While they are in deep waters off the coast of west Africa, they aren’t technically challenging, the broker says.

In fact each could be drilled in as little as 40 days. The work will help give a more accurate resource estimate. Currently, experts say the discovery could contain anywhere from 155-670mln barrels of oil.

Deutsche is also expecting a little more ‘visibility’ on the £1bn (US$1.6bn) tax dispute with Indian authorities that continues to rumble on in the background.

Financially, the bank’s analysts reckons Cairn has been in cash preservation mode, and estimates it has around £750mln on the balance sheet – the equivalent to half its current market capitalisation.