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Cairn Energy PLC "delighted" at Senegal well flow rates

Published: 12:57 09 Mar 2016 GMT

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Cairn Energy shares shot up as the appraisal well delighted..

Shares in closely followed Cairn Energy PLC (LON:CNE) rose almost 9% as it said it was "delighted" with flow rates from the latest appraisal well off the coast of Senegal.

Two drill tests were conducted on SN-3 in the upper reservoirs - the second well in the programme.

The first showed a maximum rate of around 5,400 barrels of oil per day (bopd) and a main flow rate of around 4,000 bopd over 24 hours.

The second added an additional zone of 5.5metres and a combined maximum rate of around  5,200 bopd was measured.

Cain said similar reservoir quality had now been confirmed between SNE-1, SNE-2 and SNE-3.

Cairn Energy chief executive Simon Thomson said: "Cairn is delighted with the flow rates from the latest well in the Senegal appraisal programme, which validate the scale and growth potential of the SNE field. The results have demonstrated the ability of the upper reservoirs to flow at commercially viable rates and we eagerly look forward to the results of the BEL-1 well which will commence operations shortly."

SNE-3 well in the Sangomar block is the second in a multi-well evaluation programme to help delineate the shape of the structure and define the aerial extension to the south and establish deliverability and the full potential of the field.

Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rufisque), ConocoPhillips has 35% WI, FAR Ltd 15% WI and PETROSEN, the national oil company of Senegal 10% WI.  The three blocks cover 4,490 sq km.

Shares gained 8.84% to stand at 184.6p on the day.

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