Cairn Energy Increases SNE 2C Resource Estimate

Cairn Energy Increases SNE 2C Resource Estimate
Cairn Energy increases its 2C resource estimate at the SNE asset offshore Senegal to 473 million barrels from an earlier prediction of 385 million barrels.

Cairn Energy has increased its 2C resource estimate at the SNE asset offshore Senegal to 473 million barrels from an earlier prediction of 385 million barrels.

Over the last two years, six wells have been drilled within the SNE field. Two of these were basin-opening discoveries, according to a Cairn statement, and four were successful appraisal wells.

The resource estimate increase was still lower than Woodside's estimates of gross 2C resources of 560 million barrels and Far's estimates of 277-1,071 million barrels as of April 2016, said FirstEnergy Capital in a brief research note sent to Rigzone.

“Some investors might be disappointed that Cairn's latest resources estimate at SNE remains much lower than Far and Woodside's,” the oil and gas advisory firm stated.

Despite the lower prediction, Cairn's new 2C estimate was still 28 million barrels above FirstEnergy’s estimate, which stood at 445 million barrels.

Cairn estimates further Senegal exploration potential of around 500 million barrels of gross mean risked resources and is currently planning a third phase drilling program in the country during the fourth quarter of 2016/first quarter of 2017 to further evaluate the SNE discovery.

"Successful appraisal of the world-class SNE discovery in Senegal has significantly increased 2C oil resources to 473 million barrels with associated 2C oil in place in excess of 2.7 billion barrels,” said Cairn Energy plc Chief Executive Simon Thomson.

“Drilling is scheduled to re-commence in Senegal shortly, benefiting from lower costs across the sector. The program contains options for multiple wells and in addition to ongoing appraisal of the SNE field, the joint venture continues to assess optimal locations for further exploration drilling on the acreage,” he added.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

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