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Cairn to take command of offshore Senegal blocks

Offshore staff

EDINBURGH, UK ā€“ Cairn Energy has agreed to become operator of three contiguous blocks offshore Senegal.

Australian company FAR currently operates the Rufisque, Sangomar, and Sangomar Deep blocks in partnership with state oil company Petrosen.

These cover a total area of about 7,490 sq km (2,892 sq mi) of nearshore to deepwater, over the shelf, slope, and basin floor of the Senegalese portion of the Mauritania-Senegal-Guinea-Bissau basin. The acreage has been covered by a 2,050-sq km (791-sq mi) 3D seismic survey, and numerous play types, leads and prospects have been identified, with prospective resources of up to 1.5 Bboe.

Assuming approvals, Cairn will take a 65% interest and operatorship by fully funding one exploration well up to a certain level, with costs thereafter split between Carin (72.2%) and FAR (27.8%). Cairn will additionally pay 72.2% of costs incurred on the blocks by FAR to date.

The well, to be drilled in 2013/2014, will likely target the ā€œLā€ prospect, which could hold more than 250 MMbbl. Depending on the results, further drilling could follow.

3/19/2013

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