Greenland drilling ends for 2010

October 26, 2010

Cairn Energy has wrapped up its 2010 exploration drilling campaign offshore Greenland and released both the Stena Forth and Stena Don rigs, the company said 26 October 2010.

Cairn suspended the Alpha-1S1 exploration well to allow possible re-entry to sidetrack or deepen the well at a later date, but has P&A'd the T8-1 and T4-1 exploration wells.

The Alpha-1S1 well encountered oil shows in the volcanic section. Drilling operations actually ended on 30 September 2010 under Greenland Bureau of Minerals and Petroleum regulations, although the well was still in volcanics and the prognosed Mesozoic section had not been reached. The primary objectives of the Alpha prospect were not reached, the well has been suspended and any future re-entry work depends on the results of further evaluation.

The T8-1 well encountered gas in thin sands. The T4-1 well, which was targeting a Tertiary objective at a different stratigraphic level to T8-1, failed to encounter any significant hydrocarbons and found only thin reservoir sands, although geochemical analyses continue on selective samples. Because neither the T8-1 and T4-1 wells resulted in commercial discoveries, Cairn said, the company plans to write off the US$185 million in well costs.

Cairn said it is still carrying out geophysical operations in Greenland, including a 2500km 2D seismic survey on the Eqqua Block. Also planned is acquisition of about 215km of data in the Sigguk block for well-tie purposes. A 7400km 2D survey was completed earlier this year across the offshore south Greenland blocks. Cairn said it is evaluating the data acquired earlier this year. Plans for the forward exploration program in 2011 are already underway and will be announced in 1Q 2011, the company said. OE



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