Cairn outlines Greenland exploration plans

Jan. 28, 2011
Cairn Energy has added to its swathe of exploration acreage offshore Greenland, which now stands at 102,000 sq km (39,382 sq mi).

Offshore staff

EDINBURGH, UK -- Cairn Energy has added to its swathe of exploration acreage offshore Greenland, which now stands at 102,000 sq km (39,382 sq mi).

In December, the country’s government awarded Cairn three blocks – Ingoaq, Napariaq, and Pitu – under the Baffin Bay Bid Round.

This month, the government confirmed Cairn as Operator of the Atammik and Lady Franklin blocks, and Cairn has acquired the 47.5% interest previously held by Encana, bringing its total share to 87.5%. The remainder is held by state company Nunaoil 12.5%

Lady Franklin and Atammik provide additional prospectivity and operational flexibility, Cairn claims, as both blocks are usually free of sea ice year-round

Last year, the company drilled its first three exploration wells on the Sigguk Block in the Disko Bay area. Although the wells found both gas (biogenic and thermogenic gas) and oil (geochemical evaluation has identified three oil types), they did not encounter significant target reservoir rocks.

The Alpha-1S1 exploration well has been suspended to allow possible re-entry for a sidetrack or to deepen the well at a later date. The T8-1 and T4-1 exploration wells have been plugged and abandoned.

Last year Cairn also acquired over 15,000 km (9,320 mi) of 2D seismic across Eqqua, Ingoraq, Napariaq, Pitu, Sigguk and its offshore south Greenland blocks, bringing its total 2D seismic database in Greenland to over 30,000 km (18,641 mi).

The company has secured two DP drilling vessels for its planned dual-rig campaign in 2011, the fifth-generation semiLeiv Eiriksson and the sixth generation drillship Ocean Rig Corcovado.

Cairn aims to drill up to four exploration wells this year. To assist operational flexibility, it is focusing its evaluation efforts on 10-12 potential well locations in a variety of operating environments and geological settings. It will settle on its final selection of this season’s prospects and well targets in May.

The company also plans to acquire up to five 3D seismic surveys in different areas by contracting two survey vessels.

In the meantime, it is negotiating support for its exploration program with oilfield service contractors, as well as continuing environmental and social impact studies.

01/27/2011