Cairn Confirms Oil Presence in FAN-1 Well Offshore Senegal

Oil samples have been recovered in the FAN-1 exploration well being drilled offshore Senegal by FAR Ltd and its joint venture partners Cairn Energy PLC (Operator), ConocoPhillips and Petrosen - the Senegalese national oil company.

Elevated gas and fluorescence were encountered in a shallow secondary target and the presence of oil was confirmed by an intermediate logging program. Oil samples from a thin sand were collected by an MDT wireline formation tester for further analysis. This well data confirms the existence of a working petroleum system.

The FAN-1 well has reached a depth of 4402 metres where intermediate casing has now been set. The well will be deepened to planned Total Depth (“TD”) of approximately 5000 metres. Conclusive results for this well will not be available until drilling operations are completed and all of the well data is fully assessed. The Operator anticipates that drilling of the FAN-1 well will be completed during the next month after which time the rig will be moved to the SNE-1 well location, the second well of the two well program offshore Senegal.

FAR Managing Director, Cath Norman said, ”The presence of oil In the secondary target is important in helping our geological understanding of the margin and is significant because it confirms the existence of a working petroleum generating system. It is very pleasing that the building blocks of a working petroleum system are present and we look forward to drilling ahead to deeper objectives in FAN-1 and completing the SNE-1 well.”