Member Info for Hamz74

https://www.londonstockexchange.com/news-article/CNE/mexico-drilling-update/15081975

FOR IMMEDIATE RELEASE 2 August 2021







CAIRN ENERGY PLC ("Cairn")



Mexico Drilling Update





The enclosed announcement has been reported by Eni regarding the Sayulita Exploration Prospect in Block 10, located in the mid-deep water of the Cuenca Salina in the Sureste Basin, Offshore Mexico in which Cairn (through wholly owned subsidiary Capricorn Energy Mexico) has a 15% working interest (WI).







Enquiries

Analysts/Investors

David Nisbet, Corporate Affairs

Tel: 0131 475 3000

Media

Linda Bain/Jonathan Milne, Corporate Affairs

Tel: 0131 475 3000

Patrick Handley/David Litterick, Brunswick Group LLP

Tel: 0207 404 5959



About Cairn Energy PLC

Cairn is one of Europe's leading independent energy companies and has been listed on the London Stock Exchange for 30 years. Cairn has explored, discovered, developed and produced oil and gas in a variety of locations throughout the world as an operator and partner in all stages of the oil and gas lifecycle.



Cairn's exploration activities have a geographical focus in the North Sea, West Africa and Latin America, underpinned by interests in production and development assets. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London and Mexico.



For further information on Cairn please see: www.cairnenergy.com









Eni announces a new oil find offshore Mexico

San Donato Milanese (Milan), 2 August 2021 - Eni announces an oil find in Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10 in the mid-deep water of the Cuenca Salina Sureste Basin, Offshore Mexico. According to preliminary estimates the new find may contain between 150 and 200Mboe in place.

Sayulita-1 EXP, which has led to the find, is the seventh successful well drilled by Eni offshore Mexico in the Cuenca Salina/Sureste Basin and the second commitment well of Block 10. It is located approximately 70 kilometers off the coast and just 15 km away from the previous oil discovery of Saasken that will be appraised toward year-end. The well was drilled by the Valaris 8505 Semisub rig in a water depth of 325 meters, reaching a total depth of 1758 meters ssl.

Sayulita-1 EXP found 55 meters of net pay of good quality oil in the Upper Miocene sequences. The reservoirs show excellent petrophysical properties. An intensive data collection has been carried out on the well and the data acquired indicate a production capacity for the well of up to approximately 3,000 barrels of oil per day.

The successful result, that comes after the 2020 discovery well Saasken 1 EXP, confirm the value of the asset and open the potential commercial outcome of Block 10 since several other prospects located nearby may be clustered i

hTtps://www.energyvoice.com/oilandgas/africa/ep-africa/336970/new-age-cameroon-2024/ was posted on the ADVFN board. The first few lines of the article say New Age is targeting FID early 2022, which corresponds with Bowleven's last statements.

Bid and offer seem to be slipping on no real trading volumes and not much material news?

This report is from 2009. What insights do you get from it?

Slipping on tiny volume and no news

Bid and offer both seem to have slipped by 1p or so, even though volume is very low and there has been no news. Anyone have any idea why?

And of course Woodside might enter the fray - they bought Cairn's Senegal assets so they seem to like West Africa.

Good spot, my reading of this story is that Woodside and Lukoil are also contenders for FAR? Lukoil is of course also a partner in Etinde. They could eat Bowleven before breakfast without noticing the cost.

Shows there is appetite for energy assets in this area of Africa. The buyer was Panora SA, a UK oil company with shares listed in Oslo. https://www.investegate.co.uk/tullow-oil-plc--tlw-/rns/us-180m-sale-of-assets-in-west-africa-to-panoro/202102091543305165O/ One of Bowleven's export options involves Equatorial Guinea.

The Canadian listing seems to have closed at 44 cents, which works out at 25p according to google. About 10% higher than the UK close. Has anyone tracked how tightly the two listings move in lockstep?

The article is hiding behind a paywall, could you read it?

But it could be much quicker this time. Snce this is about re-applying it could be a formality. It should be just a question of extending and rubber stamping the previous license?

Share issuance is not an absolute certainty. FID will bring 25 million, and Bowleven may be able to recover some of its sunk costs from the Cameroonian state oil company, when and if it exercises its right to buy 20% of the project, as Chahin mentioned on one of the calls this year. Or there may be a takeover bid - Bowleven's historical losses could be valuable to an acquiror from a tax perspective, as another poster pointed out.

What update is due on January 14th? Trading statement or something?

Natural gas prices are also rising. Is oil or natural gas more relevant as a benchmark for the condensate stuff in Etinde?

This article extracts details from the arbitration award, including public quotes from key politicians:

https://navjeevanexpress.com/arbitration-panel-cites-pm-ministers-assertion-on-retro-tax-to-overturn-cairn-tax-demand/

To the extent that the Vodafone case is comparable, we should know by Thursday if the Indian Government appealed it, according to the India Times article.

Someone said December 20 was Indian Government deadline to appeal against the tax award? Is this all agreed or maybe more complicated? Did anyone see any news on it?

If the FID allows for exports, perhaps the power stations will be less important?

The below pasted from Investors Chronicle, suggests that project finance is available for gas projects in Africa...I am not sure how the Chariot asset compares with Etinde. Any insights there would be appreciated.

Aim-traded Chariot Oil & Gas (CHAR:6.48p) has received two non-binding expression of interests to provide development funding for the company’s Anchois offshore gas discovery in Morocco. It’s a huge resource with an estimated 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources.

The fact that two highly regarded institutional lenders – African Finance Corporation, a Pan-African infrastructure institution, and a well-known multinational bank – have endorsed the project underlines its quality. It’s also significant given that capital expenditure of US$300m to US$500m needs to be funded to bring the development on stream. Chariot is also engaging with potential off-takers both within the domestic Moroccan gas market, and through the Maghreb-Europe pipeline to the European gas market.