Cairn Energy PLC (LON:CNE) told investors that its latest well in deep water, offshore Senegal has hit oil.
The FAN South-1 well tapped into a hydrocarbon bearing reservoir in the Lower Cretaceous and oil samples have been taken, with preliminary analysis indicating 31 degree API oil.
FAN South-1 is located some 30 kilometres from Cairn’s successful FAN-1 well and is some 90 kilometres from the shore. The well is in around 2,175 metres of water and it was drilled down to a depth of 5,343 metres.
Further work will be done to integrate the discovery with the FAN-1 discovery, to establish potential commerciality of the deep water basinal resources seen in the two wells.
READ:Cairn Energy marks sixth successful well for SNE discovery offshore Senegal
"FAN South is our tenth well in Senegal in the last three years and our second well to encounter oil in the deep portion of the basin, adjacent to the FAN discovery,” said Simon Thomson, Cairn chief executive.
“The results of FAN South will be integrated with FAN-1 and SNE to help the joint venture's ongoing evaluation of the large, deep water basin potential offshore Senegal.”
Thomson added: “As planning for the phased development of the SNE field moves ahead, we will shortly commence operations on the SNE North prospect which has the potential to enhance our total resources in Senegal."