(Preliminary Results Announcement) PDF 0.71MB - Cairn Energy PLC

the increased industry activity and interest in the region with a number of otheroperators acquiring seismic data during 2012.It is estimated that the aggregate gross mean “Yet to Find” unrisked prospectiveresource of Cairn’s licences offshore Greenland is > 6 bn boe.Cairn’s current focus in the region is on the Pitu block. Cairn (56.825%) with its jointventure partners Nunaoil (12.5%) and Statoil ASA (30.625%), the latter havingfarmed into Pitu in 2012. A drilling decision will be taken in 2013 targeting anexploration well in 2014, subject to necessary approvals.As with all our operations, we ensure that we act responsibly, taking a high level ofcare and respect towards the people and environments where we work. Forexample, during the summer of 2012, a team undertook public consultations with thelocal communities located near the Pitu area. The information gathered during thesemeetings will inform our approach as we develop our plans for 2014.Elsewhere in Greenland, we continue to evaluate the data acquired over the last fewfield seasons and will seek to farm-out certain areas and rationalise the portfolio.The Greenland Government has now opened the blocks off the north east coast ofGreenland for licencing. This area is the conjugate margin to northern Norway, wheremany major new finds have been made. Bid round 1 was exclusive to the oil majorsof the Kanamas group (Shell, Chevron, ExxonMobil, Statoil, BP and Japan NationalOil Corporation (JNOC)). Bid Round 2 will be open to any qualifying industry player.UK and Norwegian North Sea & Norwegian Continental ShelfThe corporate acquisitions made in 2012 provide us with the platform to deliver solidand sustainable cash flow, as well as mature basin exploration opportunities in theNorwegian and UK North Sea. Furthermore, they bring a team with a wealth ofexploration experience in the region that greatly widens our technical capability andability to evaluate new opportunities.The Skarfjell (Cairn 20%) oil discovery (well 35/9-7) made by Wintershall (UK NorthSea) Ltd in April 2012 was immediately followed by a 3D seismic survey andappraisal continues with the down-dip 35/9-8 well currently operating (spuddedFebruary 2013). The operator’s estimated gross 2C resource range for Skarfjell postdiscovery was between 60mmbbls and 160mmbbls. The current appraisal well isdesigned to test reservoir extent, thickness and quality down-dip as well as establishfluid content below the known “oil down to” in the discovery well. Resource estimateswill be updated following the field appraisal.The FDP was approved for the Mariner field in February 2013. The FDPs for theKraken and Catcher Fields, operated by EnQuest and Premier Oil will be submittedH1 and H2 2013 respectively.5