Cairn Energy shares rise after Senegal results

Shares of Edinburgh-based oil and gas company Cairn Energy rose at least 4% after it announced the successful testing of its SNE-2 offshore appraisal well near Senegal with positive results.

“We are delighted with the results of the SNE-2 well and in particular the well tests, which are significant in demonstrating the ability of the reservoirs to flow at commercially viable rates,” said Cairn Energy chief executive Simon Thomson.

The results help to confirm the overall scale and extent of the resource base in Senegal and further appraisal activity is expected to lead to future revision of the estimates. We now eagerly look forward to the results of the SNE-3 well.”

Cairn said the SNE-2 well is one part of a “firm three-well evaluation programme that includes comprehensive coring and testing to assess field extent, reservoir, deliverability and to build a detailed geological reservoir model from which reservoir connectivity can be demonstrated.”

The information gathered will allow Cairn and its joint venture partners to determine the oil potential of its SNE-1 discovery and “underpin the longer term field development plan.”

Cairn’s rig will now move 6 km south to drill and test the SNE-3 well.

Cairn drilled two offshore wells near Senegal in 2014, discovering oil in both and opening a new hydrocarbon basin on the Atlantic Margin, and experts said the SNE-1 discovery was potentially the largest global oil discovery in 2014.