Capricorn agrees to offshore Norway, UK asset deals

Offshore staff

EDINBURGH, UK – Cairn Energy subsidiary Capricorn Norge has agreed to acquire Premier Oil’s 20% stake in two licenses in the Norwegian North Sea for $16 million.

PL378 and PL378B, operated by Wintershall, contain the Grosbeak discovery and a potential extension to the Skarfjell discovery in PL418 to the north.

According to Cairn, the next appraisal well on Skarfjell will be drilled later this year. The company estimates reserves in the 98-192 MMboe range.

Elsewhere in the North Sea, Cairn has concluded various other transactions. Capricorn has farmed into 18% of the Statoil-operated PL159C in the Norwegian sector, which includes the recently drilled Klara discovery.

In the UK central sector, Statoil has acquired 10% of Cairn’s 30% interest in licenses P2040 and P2086, south of the Premier-operated Catcher development.

Farther north, Cairn has transferred the 25% equity in Cladhan South license P1680, held by its subsidiary Agora Oil & Gas, to operator TAQA Bratani. In exchange, TAQA is handing Cairn a 15% interest in licenses P2040 and P2086, boosting Cairn’s stake in both to 35%.

Cairn has also agreed to sell Dyas a 6% interest in license P335 (block 9/11a) and 6% of P1758 (blocks 8/15a and 9/11d), containing the Mariner West structure, and an 80% interest in license P979 (block 9/11c) containing the Mermaid structure.

Cairn remains active in this part of the UK sector as 100% operator of block 9/1a, west of the Kraken heavy-oil field. It is considering drilling the “K” prospect next year, with prospective resources for the K complex estimated at 50-250 MMbbl.

8/20/2013

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