Offshore staff

EDINBURGH, UK -- Cairn Energy says Wintershall’s recent Skarfjell oil discovery in the Norwegian could provide the basis for a stand-alone development, also tying in production from stranded fields in the area.

Skarfjell is in license PL 418 in 368 m (1,207 ft) water depth, around 17 km (10.6 mi) southwest of the producing Gjøa field and in between the Grosbeak discovery in PL378 to the south and the Titan discovery in PL420 to the north.

Initial analysis suggests Skarfjell holds 60-160 MMbbl recoverable oil. A new 3D seismic survey is currently under way over the area ahead of next-phase appraisal drilling.

Cairn has a 20% interest via its newly acquired Norwegian subsidiary Agora. 

In the UK northern North Sea, Cairn has reached agreement with operator Valiant Petroleum to lift its interest in the Tybalt discovery n blocks 211/8c and 13c (inherited via Agora) to 40%.

 The semisubmersible rig Borgsten Dolphin is drilling the Tybalt appraisal well. Cairn is earning its increase stake by providing a partial cost carry.

Elsewhere in this region, the semisub WilHunter is drilling the Timon prospect (Cairn 25%) in blocks 211/11b and 211/16b. Timon is an Upper Jurassic channelized sand play similar to the Cladhan and Tybalt discoveries.

Cairn’s subsidiary Capricorn Oil is participating in the recently closed current bid round offshore Cyprus, with awards expected toward year-end. Capricorn has a 40% share in a consortium also comprising Marathon Oil, Lebanese-owned CC Energy, and Oranje-Nassau Energie.

5/17/2012