Cairn Energy disappoints Piece by M. Jordan

FOR IMMEDIATE RELEASE

By M. Jordan

@ Share Success

Date: Tuesday 06 Dec 2011

Oil giant Cairn Energy has failed to find a commercial discovery at its exploration drilling campaign offshore Greenland, where drilling operations were extended to complete activities on the last two wells in the Atammik block. 

The firm has finished drilling the AT7-1 well in the Atammik block, which has now been plugged and abandoned.

Severe mud losses and poor hole conditions hampered the full evaluation of the interval which was thought to be of potential interest because of oil and gas shows.

Further evaluation is required to confirm the origin of the hydrocarbon shows, the firm said.

The AT2-1 well, the fifth well in the 2011 exploration drilling campaign, has also now been plugged and abandoned.

A 3D seismic programme covering 1,500 square kilometres acquired on the Pitu block in Baffin Bay is currently being processed with fully migrated results expected in 2012. Initial results confirmed micro seepages of oil and gas in the immediate vicinity of the main structures identified on the previous 2D seismic data.

Chief Executive Simon Thomson said: "The first phase of Cairn's exploration programme in Greenland has encountered oil and gas shows across multiple basins and now reservoir-quality sands in the Atammik block. Whilst we have yet to make a commercial discovery we remain encouraged that all of the ingredients for success are in evidence.

"Evaluation of data across Cairn's multiple blocks is ongoing against a backdrop of active farm-out discussions for selected areas."

For more information  visit at Share Successonline