(MENAFN- ProactiveInvestors - UK) Cairn Energy (LON:CNE) said it is now following up its new discovery offshore Senegal, with work now underway on the second well in the programme.
The findings of Cairn's 40% owned FAN-1, the first Senegal well, earlier this month indicated a discovery of between 250mln and 2.5bn barrels of oil in place. It unearthed 29 metres of oil bearing reservoir and encountered more than 500 metres of gross oil bearing intervals.
Now drilling has begun on SNE-1, the second well, which is also 40% owned by Cairn.
"We have a large acreage position and are in the process of evaluating the initial well information and determining potential follow up activity which we are currently targeting for 2015," said chief executive Simon Thomson.
Cairn also told investors drilling will begin in December for an exploration well in the fourth quarter on the Cap Boujdour area, offshore Morocco. The company has a 20% stake in this venture.
Elsewhere, in the North Sea, two wells are planned and further drilling is pencilled-in, subject to final investment decisions.
Work continues with the Catcher and Kraken field developments in the North Sea where first oil is targeted for 2016/17.
Cairn added that interactions are ongoing with the Indian tax authorities, but the company is currently unable to access the value of its 10% residual stake in Cairn India € which had a value of US$927mln at the end of September.
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