Cairn Energy has encountered oil at the Vega-Regulus (VR-1) well offshore Senegal, marking the company’s eighth successful well in the area since 2014.
The Stena DrillMAX, from Stena.
The VR-1 well is about 5km west of the SNE-1 (Shelf North Edge) discovery well, and is being drilled to appraise the lower and upper reservoir units in the western part of the SNE field.
Drilled to 2759m with the Stena DrillMAX, the well intersected a 97m gross oil column across multiple reservoirs with highest net pay in any well drilled to date, according to partner FAR Ltd.
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 at 348 MMbbl, compared to the minimum economic field size for the SNE field of 200 MMbbl, says FAR.
“Currently, the well is four days ahead of budget reflecting similar efficiencies experienced at the SNE-5 well,” says FAR. “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.”
The VR-1 well will also examine deeper Aptian carbonate exploration targets under the SNE field.
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 at an estimated US$1.5-$2.3 million (AUD $2-3 million).
FAR says it is able to fund the additional VR-1 well.
“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 reservoirs. Understanding these reservoirs is critical to finalizing the Phase 1 development concept and plan,” says FAR Managing Director Cath Norman.
Cairn has a 40% interest as operator in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rufisque). Partners in each block include ConocoPhillips (35%), FAR (15%), and Petrosen, the national oil company of Senegal, (10%).