The enclosed announcement has been issued by Valiant Petroleum (60%; Operator) with regard to the Tybalt Well in the UK North Sea in which Agora Oil and Gas AS (a fully-owned subsidiary of Cairn) has a 40% interest.
Valiant Petroleum plc
28 May 2012
Tybalt Appraisal Well Result
Valiant Petroleum plc ("Valiant Petroleum" or the "Company") reports that the Tybalt appraisal well 211/8c-5 has now been drilled to a total depth of 13,212' Measured Depth.
The well penetrated a full Upper Magnus Sandstone Member (UMSM) section, comprising 844' gross, with 316' of net sand. 210' of core was successfully recovered from this interval.
Initial interpretation indicates that the hydrocarbon saturations recorded throughout the section were broadly similar to the 211/8c-4z discovery well drilled in 2010. Porosities were also similar but the permeabilities recorded in the current well were generally at the low end of expectations.
Reservoir testing via MDT was unable to demonstrate the presence of moveable hydrocarbons from the well. Test points located in the lower part of the UMSM recovered water, while stations towards the top of the interval were tight.
Valiant Petroleum (60%; Operator) and Agora Oil and Gas AS (a fully-owned subsidiary of Cairn Energy PLC; 40%) have now decided to suspend the well. Further technical analysis of the core, log and dynamic test data will be required to assess the size and potential of the Tybalt accumulation.
In accordance with the AIM Rules, the information in this announcement has been reviewed and signed off by Valiant Petroleum's Development Manager, Nigel Platt, a Chartered Geologist with 26 years of relevant experience.
Valiant Petroleum plc
Nick Ingrassia/ Mark Lewis/ Peter Buchanan
+44 (0) 1483 755 666
Brunswick Group (Public Relations)
Patrick Handley/ Natalia Erikssen
+44 (0) 20 7404 5959
Oriel Securities Limited (NOMAD, Joint Broker)
Michael Shaw/ Ashton Clanfield
+44 (0) 20 7710 7600
Jefferies Hoare Govett (Joint Broker)
Chris Zeal/ Graham Hertrich
+44 (0) 20 7029 8000
Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement nor, unless previously published by means of a Regulatory Information Service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.
Simon Thomson, Chief Executive
Jann Brown, Managing Director & CFO
Mike Watts, Deputy Chief Executive
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Patrick Handley, David Litterick
Brunswick Group LLP
Tel: 0207 404 5959
NOTES TO EDITORS
Agora Oil & Gas
Ø Agora is now 100% owned by Cairn
Ø Formed in October 2009 by the former management team of Revus Energy ASA and based in Stavanger, Norway. Agora has focused on creating exploration and appraisal value in mature parts of the North Sea in areas of low-moderate geological and operational risk.
Ø Agora Gross Assets were NOK 717,941,000 which at 31 December equated to $120,101,208. The Group had no profits for the year. Loss for the year was NOK 50,347,000 or $8,978,700.
Ø Agora's Board of Directors is led by Chairman Andrew Armour and Chief Executive Svein Ilebekk. The senior management team includes Tim Sullivan (Deputy CEO and UK Manager), Chris Elliott (Exploration Manager), Erik Samuelsen (Commercial Manager), Ingrid Landråk (Chief Financial Officer) and Callum Smyth (HSE & Operational Manager).
Ø Agora has 15 employees who are based in Stavanger and the UK.
Cairn Energy PLC
Ø Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange.
Ø "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries as appropriate.
Ø Cairn currently holds approximately 22% of the issued share capital of Cairn India Limited (CIL). Production from CIL's Rajasthan operations is 175,000 bopd.
Ø Cairn Energy PLC (including Capricorn) is run from Edinburgh with operational offices in Kathmandu, Nuuk, Madrid and Stavanger.
Cairn in Greenland
Ø Cairn through its subsidiary, Capricorn, operates 11 blocks offshore Greenland.
Ø Cairn carried out extensive Environmental and Social Impact Assessments to identify how potential environmental and social impacts of its drilling programme can be avoided or mitigated.
Ø A total of 14 exploration wells have been drilled offshore Greenland to date, five of which were drilled in the 1970s, one in 2000, three in 2010 by Cairn Energy and five by Cairn Energy in 2011.
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