Cairn Gains Ground Offshore Greenland

The following operational update relates to Cairn's current five well exploration drilling campaign offshore Greenland. Operations will continue to the end of November to allow activities on the last two wells in the Atammik block to complete.

AT7-1 Well: Atammik Block, South Ungava Area

The Leiv Eiriksson is drilling the AT7-1 well in the Atammik block, located in 909 meters (m) of water and 202 kilometers (km) offshore Nuuk.

The well has encountered a 113m gross interval with approximately 50m of reservoir quality sands of Cretaceous age. Mud losses and poor hole conditions have hampered the full evaluation of this interval which is of potential interest because of oil and gas shows. Part of this interval is behind casing.

An intermediate logging program is ongoing across the cased and open hole sections of the well following which the well will be deepened to reach the anticipated Total Depth (TD). At this point a cased hole Modular Dynamic Tester (MDT) program is planned to try and recover fluid samples to surface.

AT2-1 Well: Atammik Block, South Ungava Area

The Ocean Rig Corcovado is currently operating on the AT2-1 well, the fifth well in the 2011 exploration drilling campaign, located in a water depth of 1,045m and approximately 180km offshore Nuuk and 46km from AT7-1. The well has reached TD at 4,847m in Cretaceous sediments having encountered minor hydrocarbon shows. Logging operations are currently under way.

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