London South East
Alliance News
Cairn Energy PLC on Monday said the CB-1 exploration well in the Cap Boujdour permit area offshore Western Sahara will be plugged and abandoned after finding non-commercial hydrocarbons.
The FTSE 250-listed oil explorer, citing a report from US-based Kosmos Energy, the operator of the permit, said the well encountered hydrocarbons but that the discovery is non-commercial and will be plugged and abandoned.
Cairn has a 20% stake in the licence, with Kosmos holding a 55% stake and operatorship. ONHYM, the other partner on the permit, holds the remaining 25% stake.
“While not a commercial find, this first well in the basin has significantly de-risked further exploration by demonstrating a working petroleum system, including the presence of a hydrocarbon charge, as well as effective trap and seal,” said Kosmos Chairman and Chief Executive Andrew Inglis.
“The well results confirm the substantial exploration potential of our 22,000 square kilometer Cap Boujdour block, which includes a diverse range of independent plays and fairways with multiple prospects,” Inglis added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
