Great results for Cairn Energy

Plenty of captivating and risky work for Cairn in the years to come; all backed up by solid finances.

For Cairn Energy, 2018 unfolded with full production from the Catcher Area (Catcher, Varadero and Burgman fields) and Kraken in the UK North Sea, generating around 17,500 bopd net to Cairn and close to US$400million in oil and gas sales revenue, as reported by Simon Thomson, CEO of Cairn Energy PLC at the Annual General Meeting in Edinburgh.

While Catcher (operated by Premier Oil) is performing well, Kraken’s production is below expectation, but work is undertaken to improve production efficiency and field performance.

Cairn has qualified as an operator in both the UK&Norway and has an exploration drilling campaign currently underway with four wells in 2019, three of which will be operated by Cairn. Illustration: Cairn Energy PLC

Parts of Cairn’s medium to long term cash flow plan are the two development projects: SNE in Senegal and Nova (formerly known as Skarfjell) on the NCS. Everything works according to plan, with Nova scheduled for first oil in 2021 and SNE in 2022.

Nova field was discovered in 2012, with recoverable reserves around 80 million barrels of oil equivalent, of which the majority is oil. The SNE field was the largest global oil discovery of 2014.

After that, the region has evolved from a frontier basin to an emerging oil play attracting the attention of the global industry. Cairn has operated three drilling programmes and has now successfully laid the foundation for a multi-phase development plan of the SNE field.

Cairn’s strategy of securing high impact resources worldwide has determined its involvement in a farm-in with Equinor for four blocks in the Sandino basin, offshore Nicaragua Pacific coast.

The second half of 2019 comes in as very busy regarding the drilling program, with six wells planned (three in UK/Norway and three in Mexico). Cairn will operate five of them, hunting for 800 mil barrels of gross resources.

In Norway, Cairn will operate the drilling of the Lynghaug (PL758 south-east of the Norne field in the Norwegian Sea) and Godalen (PL842 in the Norwegian Sea) prospects, and the Chimera prospect targeting 154 gross MMboe mean resource in the UK North Sea.