Doodlebugger
27 Mar 2017
So FAR so good – first results from VR-1 First results from VR-1 look much better than expected. Onward to the carbonates….Don't expect teh Cairn share price to bus=dge---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----VR-1 well finds oil in Senegal, 8/8 successful wells drilled • The VR-1 well has drilled to a depth of 2759m, below the OWC for the SNE field• The well intersected a 97m gross oil column across multiple reservoirs with highest net pay in any well drilled to date • Greater than expected thickness of Lower SNE Reservoirs in oil column• Best Lower SNE Reservoir properties measured so far in the SNE field • Samples of oil have been taken confirming fluid contacts • FAR expects the VR-1 well results to contribute to a revision of resource estimate for SNE • Well is currently ahead of schedule • Operations are continuing, preparing to deepen and drill into the Aptian carbonate play Drilling operations on the FAR Limited (ASX: FAR) VR-1 well offshore Senegal have reached a depth of 2759m, wireline logging and sampling through the SNE section are complete and preparations are underway for deepening the well into the Aptian carbonate objectives below the SNE field. FAR’s evaluation of the well results are as follows: • The reservoir units are in oil as prognosed • The lower, 500 series 520 reservoir (16m in oil), a key reservoir to the phase 1 development of the SNE field, exhibited excellent reservoir properties, superior to all other reservoirs sampled in the SNE field to date • The deeper 540 reservoir (11m in oil) has only been seen in the SNE-2 well in oil (2m) • Samples of oil have been taken • Along with other appraisal wells, the well confirmed a 97m gross oil column with greater than expected net pay and thickest net pay of all appraisal wells drilled to date FAR anticipates that the results of the VR-1 well, together with the recent SNE-5 results will lead to a revision of contingent resource estimate for the SNE field and have an impact on design of the development plan in the coming months. The 1C resource is currently 348mmbbls* (gross, unrisked, ref ASX announcement 23 August 2016) compared to the minimum economic field size for the SNE field of 200mmbbls. The VR-1 well is the 8th successful well to be drilled offshore Senegal since drilling commenced in 2014. Currently the well is 4 days ahead of budget reflecting similar Figure 1: Location of the planned VR-1 and SNE-6 wells * Refer to Cautionary Statement in this report (Page 3) relating to estimates of prospective resources Page 2 efficiencies experienced at the SNE-5 well. The VR-1 well is located approximately 5kms west of the SNE-1 discovery well (as seen in Figure 1) and is being drilled to appraise the lower and upper reservoir units in the western part of the SNE field. The VR-1 well will also assess the potential for additional reservoir units within the upper reservoirs in the western part of the SNE field. In addition, the VR-1 well will examine deeper Aptian carbonate exploration targets under the SNE field (refer to Suum lead in FAR ASX announcement dated 7 February 2017). The cross section in Figure 2 illustrates the location of the well relative to the SNE reservoirs and the deeper Aptian target. Budget and drilling efficiencies Due to the efficiencies achieved on the SNE-5 well and projected improved drilling performance, FAR estimates that the inclusion of the VR-1 well into the drilling program will have a minimal incremental funding impact for FAR (estimated at approximately A$2-3 million). FAR reported a closing cash position at 31 December 2016 of $47 million. FAR is able to fund the additional VR-1 well. FAR Managing Director, Cath Norman, said, “The VR-1 well has been highly successful, providing important information regarding the geology of the western flank of the SNE field and in particular the nature of the 500 series reservoi
forwardloop
09 Mar 2017
info [link]
Doodlebugger
07 Mar 2017
Third well? The RNS states that the VR-1 well is being drilled between SNE-5 and SNE-6. So that’s one of the optional wells now being slipped in to the original confirmed two well drill. Good news I guess. Let’s hope the lower 100MM barrel target comes in
Doodlebugger
23 Feb 2017
SNE-5 at Total Depth Following off the FAR website this morning – DST in progress, results awaited/to be releasedSNE-5 at Total Depth • The SNE-5 well has reached Total Depth of 2,852m • Wireline logging operations have been completed • Drill Stem Testing of the primary target reservoir has commenced • Drilling and testing progressing safely and efficiently Drilling of the SNE-5 well, the fifth to appraise the SNE oil field offshore Senegal has reached a Total Depth of 2,852m below the mud line. A wireline logging and sampling program has been completed successfully and rig operations are progressing with a Drill Stem Test (DST) of the primary reservoir target at this location. To date, the operations have been completed safely and ahead of schedule. FAR looks forward to releasing flow test results at the completion of operations in the SNE-5 well. Background The SNE-5 well is being drilled by the drill ship Stena DrillMAX (see Figure 2) and together with the follow on SNE-6 well, will evaluate the upper SNE reservoir units, specifically reservoir connectivity and deliverability, by conducting oil flow tests, including interference testing. The two new wells follow the highly successful SNE-2, SNE-3, BEL-1 and SNE-4 appraisal drilling pro-gram completed on the SNE oil field in June 2016. SNE-5 and SNE-6 are being drilled to help improve the joint venture understanding of the characteristics of the upper SNE reservoir units and ensure potential development wells in these units are placed to optimise oil recovery and maximise value per well. The locations of the SNE-5 and SNE-6 wells are shown in Figure 1. SNE-5 was drilled to total depth, after which a wireline logging and drill stem testing (DST) program is to take place. SNE-5 is located in the southern area of the SNE oil field approximately 2km south east of SNE-3. SNE-6 is to be drilled immediately after the completion of SNE-5.
bioking
15 Feb 2017
DONG CAIRN are the leading buyer for Dong Energy...will no doubt require a fundraising but if successful the end result would be a great oil producer
nk1999
08 Feb 2017
Deutsche From ADVFN:"Deutsche Bank has upgraded Cairn Energy to 'buy' from 'hold' and nudged the price target up to 275p from 270p following a review of the company's development portfolio and on its potential to outperform market expectations.The bank said it sees upside potential on Kraken and is positive on the Catcher development, where the wells have so far responded well to water injection testing.In addition, it reckons Cairn can de-risk its Senegal SNE discovery through well interference testing in the summer."Taken together with a robust balance sheet and an option on the Cairn India tax arbitration, we think Cairn offers investors several potential catalysts for valuation growth this year."Deutsche noted Cairn has made good progress on its UK developments over the last 12 months, with both projects below budget and on schedule for a 2017 start-up.The Kraken floating production storage and offloading vessel is currently in Rotterdam for inspection and certification and start-up is still guided for the second quarter.Meanwhile, the operator of the Catcher project is also highly incentivised to complete work on the FPSO at the yard ahead of sailing."Both vessels benefit from a less complex hook-up to the risers using the buoy method, which should limit time lost to bad weather."As our special report on reservoir performance outlines today, both projects will then rely on secondary recovery through water injection to maximise recovery. We think the risk/reward is attractive, particularly on the Catcher development."nk
Doodlebugger
07 Feb 2017
New Far reserves estimate Looks like the new FAR reserves estimate has prodded the Cairn share price into action…“Undrilled oil prospectivity has increased by over 50% from last review”Link:[link] February 2017 Senegal Prospective Resource Increase • New 3D seismic data interpretation has unlocked numerous, highly attractive, oil prospects on FAR’s offshore Senegal acreage • Undrilled oil prospectivity has increased by over 50% from last review • FAR best estimate of the undrilled prospective resources has been increased to total 1,563 mmbbls* on a gross, unrisked basis (234 mmbbls net to FAR*) • Prospective resources inven-tory audited by RISC Operations Pty Ltd FAR Limited (ASX: FAR) has identified over 1.5 billion barrels* of undrilled oil prospectivity in it’s offshore Senegal acreage. The increase in undrilled prospective resources has resulted from the interpretation of new 3D seismic data acquired in 2015 that has been integrated with the previous 3D seismic and well data. Of the 1,563 mmbbls* mapped, 234 mmbbls* are net to FAR who is a 15% participant in the Ru-fisque, Sangomar and Sangomar Deep (RSSD) joint venture. In addition to the undrilled prospects, the 2C recoverable resource in the SNE discovery is 641 mmbbls* with 96 mmbbls* net to FAR (ref-erence ASX announcement 23 August 2016). FAR Managing Director Cath Norman said; “The prospectivity of FAR’s offshore Senegal acreage is extremely exciting. We have approximately 7,500 square kilometres of area under licence in Sene-gal and given success in our discoveries in the FAN-1 and SNE-1 wells and subsequent successful appraisal of the SNE oil field, we know we have a prolific working source rock, excellent reservoir development in the area and a good working seal. The new 3D seismic data has allowed us to get confidence in mapping traps along the extension of the SNE trend and also new plays and pro-spects in the acreage. We are currently drilling SNE-5, the fifth well to appraise the SNE oil field, which will be followd by SNE-6. Because of the relatively low cost of drilling in deepwater at present, our JV has negotiated additional optional drilling slots for the rig. It is likely that one of these exploration targets will be drilled following the current two well campaign, we look forward to keeping shareholders updated as the drilling program progresses. “Several prospects are located within tie-back distance to a future SNE production hub. These pro-spects have the potential to deliver high value barrels, because they can be developed quickly and at relatively low cost as a subsea tie-back to SNE infrastructure.” RISC report An updated Independent Resources Report for FAR on the exploration potential of FAR’s Ru-fisque, Sangomar and Sangomar Deep offshore blocks, offshore Senegal has been completed by RISC Operations Pty Ltd (“RISC”
. Page 2 * Refer to Cautionary Statement in this report (page 4) relating to estimates of prospective re-sourcesGo to Far website for full article…
II Editor
02 Feb 2017
NEW ARTICLE: The Oil Man: The 2017 Bucket List "The final shake-up for the 2016 Bucket List shows a very commendable result, of the 2016 squad of 14 the top three companies rose by over 400%.To get into the top six you needed to be up by 187% and only two stocks ended up down on the ..."[link]
Doodlebugger
23 Jan 2017
Senegal Drilling starts Below from FAR to announce start of Senegal drill...SNE-5 starts drilling „h Drilling the SNE-5 well offshore Senegal started on Saturday 21 January, 2017. „h SNE-5 and SNE-6, to be drilled by the Stena DrillMAX, are located in the southern area of the SNE oil field. Oil flow and interference testing will evaluate the deliverability and connectivity of the SNE upper reservoir units. „h Information from these wells will further fine-tune the SNE development concept, which currently incorporates a phased development to capture the large and extensive resource base. Drilling of the SNE-5 appraisal well, offshore Senegal, began on Saturday 21 January. SNE-5, and the following well SNE-6 will be drilled by the drill ship Stena DrillMAX (see Figure 2) and will evaluate the upper SNE reservoir units, specifically reservoir connectivity and deliverability, by conducting oil flow tests, including interference testing. The two new wells follow the highly successful SNE-2, SNE-3, BEL-1 and SNE-4 appraisal drilling program completed on the SNE oil field in June 2016. SNE-5 and SNE-6 are being drilled to help improve the joint venture understanding of the characteristics of the upper SNE reservoir units and ensure potential development wells in these units are placed to optimise oil recovery and maximise value per well. The locations of the SNE-5 and SNE-6 wells are shown in Figure 1. SNE-5 will now be drilled to total depth, after which a wireline logging and drill stem testing (DST) program is to take place. The extent and composition of the DST program will be finalised following examination of the log data from the well. SNE-5 is located in the southern area of the SNE oil field approximately 2km south east of SNE-3. SNE-6 is to be drilled immediately after the completion of SNE-5. FAR Managing Director, Cath Norman, said, ¡§SNE-5 is the first of two new wells that will further evaluate the potential of the SNE oil field, specifically to improve our understanding of the upper SNE reservoir units and their contribution to the conceptual development plans for this world class asset. The Stena DrillMAX has been contracted for the two firm wells at highly favourable rates reflecting the current low-cost rig contracting environment. FAR and its Senegal joint venture partners are considering further optional exploration wells to follow the two firm wells to take advantage of the low cost of the DrillMax. FAR has an extensive portfolio of undrilled prospects and together with our JV partners, we are keen to progress evaluation of the full Senegal PSC licence area now that we have a commercially viable project at SNE. This area represents one of the world¡¦s most attractive emerging basins for oil and gas exploration as seen by the recent farm-in by BP to Kosmos¡¦ acreage to the north of FAR¡¦s blocks.¡¨ FAR poised for continued success in 2017 FAR has achieved significant results to date and the drilling highlighted in this release together with other FAR activities planned over 2017 have potential to add further value. Some of the key achievements of FAR offshore Senegal are listed below. „h Farmed down part of FAR¡¦s interest offshore Senegal to Cairn Energy and ConocoPhillips for US$196m carry and cash in 2013 „h Discovered new, world-class, deep water oil plays offshore Senegal in the FAN-1 and SNE-1 wells in 2014 „h SNE was rated as the world¡¦s largest discovery in 2014 by IHS „h Drilled 4 highly successful SNE appraisal wells in 2015/2016, proving SNE is a world class oil field capable of delivering commercial oil flow rates „h Increased the SNE contingent recoverable resource base from a 2C of 330mmbbls* to a 2C of 641mmbls* (and undergone 3 separate independent technical expert update/audits from RISC) (refer ASX announcement 23 August 2016) „h Passed MEFS (minimum economic field size) for the SNE field, completed a detailed development plan for a phased devevelopment of SNE and and made a st
Contrariwise
11 Jan 2017
Investors Chronicle Value tip of the year For those of you who don't have access to the IC:Geopolitical events and price volatility, not to mention operational complexity, mean you should never call a commodity stock 'low risk'. That's even more true of companies in an oil sector that is not only adjusting to a world with two swing producers, but to greater climate-related sanctions in the years ahead. But to the extent that 'low risk' can be found among any of London's listed oil groups, Cairn Energy (CNE) is a strong candidate. With both cash and lowly valued, low-cost reserves on its balance sheet, the company should benefit from any further rise in oil prices, which we think is more likely than not in the year ahead. Throw in looming production from its stakes in Catcher and Kraken in the North Sea, and we think 2017 should be the year where Cairn's shares finally push beyond their narrow recent trading range.Cairn's timing has been good. Unlike many of its peers, the FTSE 250 constituent did not spend the great price slump of 2014 to 2016 selling oil at unprofitable prices, booking massive impairments and taking on debt - a history reflected in a share price that has outperformed the sector. While others have been retrenching, cutting and scrambling to protect dividends, Cairn has been busy building its asset base from 30m barrels (mmboe) of booked 2P (proven and probable) reserves at the end of 2013 to a best-estimate gross contingent (2C) resource of 473mmboe as of August 2016. Crucially, that figure omits a further 2.7bn of "associated 2C oil in place" the company believes sits in the twin discoveries it made off the coast of Senegal in 2014.Plus, there's good reason to believe the 473m figure, which relates to the Sangomar Deep (or 'SNE') discovery, is somewhat conservative. In acquiring ConocoPhillips' 35 per cent working interest in the SNE field for $350m (£268m) in October, Australian explorer Woodside estimated that SNE contains 560m barrels of recoverable oil. So Cairn's figure - based on an independent report by consultant ERC Equipoise - leaves room for upgrades, which could be further boosted by a third phase drilling programme, which the Edinburgh-headquartered company believes can add a further 500m barrels of gross risked resources.Future appraisal drilling in Sangomar Deep – in which Cairn holds a 40 per cent working interest – is expected to eat up an additional $80m of capital expenditure. That, together with the $315m earmarked for the last stretch development of the Kraken and Catcher fields, should wear away most of the $414m net cash Cairn had at the end of June. But an undrawn reserve-based lending bank facility of up to $260m, with additional letters of credit of $175m, provide a backstop until Kraken and Catcher start to generate free cash flow by the end of the year.The first source of long-awaited revenue should come from Kraken early next year, $300m under budget, ahead of schedule and boosted by the February acquisition of an additional 4.5 per cent interest in the development, following the collapse of joint-venture partner First Oil. The field should last 25 years and is expected to break even at just $14 per barrel at peak flow, 15,000 barrels a day of which will accrue to Cairn. Production from Catcher, due in the second half of 2017, is expected to break even at $20 per barrel and has been further de-risked by supportive revisions to lead operator Premier Oil 's (PMO) financial covenants.One potential fillip to Cairn's cash position - and the share price - is the settlement of a dispute with Indian tax authorities. India's revenue has claimed it is owed $477m, and blocked Cairn's disposal of the residual 10 per cent stake it holds in Cairn India, the division the company sold to Vedanta Resources for $6.5bn in 2011. Cairn has a "high level of confidence" it can claim compensation of $1.1bn plus costs in the matter, which has reached international arbitration under the UK-India Investment Treaty. This di
II Editor
10 Jan 2017
NEW ARTICLE: Trends and Targets for 11/01/2017 " BRENT CRUDE This is causing a degree of puzzle, due to the price hitting the 50's and essentially stopping. Our in-house rule of thumb, when this sort of thing happens, is to look for reasons it will instead go down, despite the presence of ..."[link]
JoeyTheFox
17 Dec 2016
Re: From Telegraph [link]
JoeyTheFox
17 Dec 2016
Re: From Telegraph [link]
nk1999
04 Sep 2016
From Telegraph "Aim-listed junior miner FinnAust is to acquire two mining projects in Greenland from Cairn Energy. FinnAust will obtain a nickel-copper-platinum deposit and a lead-zinc-silver project by acquiring Cairn’s subsidiary Avannaa Resources in an all-share deal. Cairn will take a stake in FinnAust after the deal completes.Rod Mcillree, FinnAust’s managing director, said: “We feel we are now custodians of projects we consider to be globally significant, with analogies to existing, very large projects elsewhere in the world.”......[link]
