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Cairn Energy found oil offshore Senegal

Staff writer |
Scottish oil and gas company Cairn Energy and its joint venture partners have discovered oil at a well in a previously untapped area offshore Senegal.

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The Edinburgh-headquartered company said on Tuesday that it encountered 29 metres of net oil bearing reservoir at the FAN-1 well, located around 100 km off the coastline and 1,427 metres deep, however it added that further exploration work nearby is already planned.

According to Reuters, announcement of the discovery sent Cairn’s shares rising more than 10 percent higher. “Shares in the oil explorer were trading 10.7 percent higher at 199.5 pence at 0724 GMT on Tuesday, making it the highest gainer among the FTSE 250 companies”, the international news agency said.

Cairn Energy has a 40 percent interest in three offshore blocks in Senegal, while ConocoPhillips has 35 percent, FAR Ltd 15 percent and Senegal’s national oil company Petrosen owns 10 percent.

“We have encountered a very substantial oil bearing interval which may have significant potential as a standalone discovery,” said Cairn Energy chief executive Simon Thomson.

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