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Cairn Energy buoyed by Senegal oil discovery

posted 11 Oct 2014, 13:31 by Tollcross Junction   [ updated 11 Oct 2014, 13:31 ]

Oil and gas explorer Cairn Energy today hailed a “very substantial“ discovery off the coast of Senegal.

It represents the first significant find for the company since it started investing the proceeds from the sale of its Indian interests in finding new prospects.

Group shares jumped by more than 10 per cent on the news, although profit-taking later in the day saw them end up 3.6p, or 2 per cent, at 183.5p.

Cairn, which has suffered a number of setbacks in its exploration programme in recent years, has a 40 per cent stake in three blocks offshore of Senegal, in West Africa, where an exploration well has discovered oil. Initial gross estimates for the well range from 250 million to 2.5 billion barrels.

Cairn’s chief executive Simon Thomson said: “We have encountered a very substantial oil bearing interval which may have significant potential as a standalone discovery. Furthermore, this result materially upgrades the prospectivity of the block with a proven petroleum system and a number of deep-fan and shelf prospects established.”

Source: Perry Gourley, The Scotsman