News

UK North Sea Oil and Gas Licensing Round

25 October, 2012

 

Cairn in partnership with a number of international oil & gas operators has been successful in its application for eight potential licences covering 13 blocks in the UK 27th Licensing Round.  The results have been announced today by the Department of Energy and Climate Change (DECC).


Cairn’s licence applications were made via its wholly owned subsidiaries Agora Oil & Gas and Nautical Petroleum.  Cairn will work as a non-operator partner alongside a number of licence operators on the awarded blocks.  Details of the potential licences, blocks, operators and obligations are as follows:


 

POTENTIAL AWARDS

BY BLOCK

27th ROUND

Block(s)*

Licence Administrator*

Partners

Obligations*

Cairn Equity

Firm

Contingent; Drill or Drop (D/D)

28/4 (Part)

Premier

Nautical, Agora

1 Firm Well

1 Contingent Well

46%

28/8

Premier

Nautical, Agora

1 Firm Well

Reprocess 3D

 

46%

28/9b & 28/14

Premier

Nautical, Wintershall (E&P), Agora, TAQA

Reprocess 3D

D/D

30%

29/11

Premier

Nautical, TAQA, Agora, Wintershall (E&P)

Reprocess 3D

D/D

30%

210/25b, 211/21b & 211/26b

TAQA

Agora

1 Firm Well

Obtain 2D

Obtain & Reprocess 3D

1 Contingent Well

50%

8/5 & 9/1b

EnQuest

Nautical

Obtain 3D

D/D

40%

14/30c

Endeavour

EnQuest, Nautical

 

D/D

20%

211/19b & 211/24c

Statoil

Agora

Reprocess 3D

D/D

40%

 

*Block(s) and Licence Administrator: subject to clarification

*Promote licences do not have an Operator as defined, hence the use of the term Licence Administrator

*Obligations: Only the main obligations are stated

(Split): Blocks split as a way of dealing with the differing prospectivity focus of competing Applications

(Part): Part Blocks are those where a Company has only requested a portion of the available Block
 

The awards include four licences in Quads 28 & 29, in close proximity to the Catcher area discoveries (where Cairn participates with 30% equity). Firm wells have been offered on both the Laverda and Sunbeam prospects in this new acreage, providing further prospective volumetric potential to the development project. An additional firm well will be drilled in block 210/25b on the Tulla Prospect (Cairn 50%). This licence will be operated by TAQA Bratani Limited, who also operate the adjacent Tern Field, providing potential for a fast track development in the success case.

 

Over the next 12 months, Cairn expects to participate in multiple North Sea exploration and appraisal wells. In seeking to build on its North Sea edge and prospective block inventory (27 existing and eight potential offshore licences in the UK and Norway), while providing a portfolio of lower risk exploration opportunities.  This year, as well as the UK 27th Licensing Round, Cairn participated in the Norwegian Continental Shelf APA 2012 Licence Round with results anticipated in Q1 2013. During 2012, Cairn drilled six wells in the North Sea and, a further three are currently operating.

 

Enquiries:

Analysts/Investors    
Simon Thomson Chief Executive 0131 475 3000
Jann Brown  Managing Director & CFO 0131 475 3000
Mike Watts Deputy Chief Executive 0131 475 3000
David Nisbet Corporate Affairs 0131 475 3000
Media    
Patrick Handley Brunswick Group LLP 0207 404 5959
David Litterick Brunswick Group LLP 0207 404 5959

 

Related information
UK North Sea Oil and Gas Licensing Round Download PDF 0.15MB