Cairn Energy has announced that it has entered into a farm-in agreement with Chariot Oil & Gas Investments (Mauritania) for a 35 per cent non-operated interest in an exploration block offshore Mauritania
Block C19, in which Chariot currently holds a 90 per cent interest while Mauritanian state company Société Mauritanienne des Hydrocarbures owns 10 per cent, covers an area of 12,175 square kilometres (sq km) in water depths ranging from shallow shelf to more than 2,000 metres.
The block, which lies north of existing discoveries in Mauritania, contains the Tertiary and Cretaceous deepwater fan plays proven further south along the West African margin.
The two wells previously drilled in the shallow water areas of the block contain reservoirs with oil shows.
According to Cairn Energy, the most prospective part of the block is covered by a new 3,500 sq km 3D seismic survey recently acquired by Chariot and currently being processed.
The seismic will be interpreted with the objective of identifying a high grade drillable prospect by the end of Q1 2014, the company added.
Under the terms of the farm-in agreement and subject to government approval, Cairn Energy will pay approximately US$26mn to Chariot for seismic and other back costs.
Simon Thomson, chief executive of Cairn Energy, said, “The opportunity in Mauritania presents an attractive new country entry, building on our existing Atlantic Margin portfolio in Senegal and Morocco. By developing an increased strategic presence in the under-explored and highly prospective new plays in this region, we can generate both operational and geological synergies and fully apply our proven frontier exploration skills.”
