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Greenland: Cairn encouraged, talking farm-outs

Cairn Energy PLC expressed encouragement that all ingredients for commercial success are present off western Greenland after its 2010 and 2011 wells encountered oil and gas shows in multiple basins and found reservoir quality sands in the Atammik block.

The company is evaluating data on multiple blocks and discussing farm-outs in selected areas. It is considering another 3D seismic survey over the Lady Franklin and Atammik region next year that could lead to further drilling in later years.

In wrapping up its 2011 program, Cairn has plugged and abandoned the AT7-1 well in the South Ungava area of the Atammik block that encountered a 113-m gross interval with 53 m of net reservoir quality sands of Cretaceous age. Severe mud losses and poor hole conditions hampered evaluation, and a set of sealed MDT samples and gas samples was sent to the UK for analysis.

Cairn also plugged and abandoned the AT2-1 well 46 km from AT7-1 that went to a total depth of 4,847 m in Cretaceous sediments having encountered minor hydrocarbon shows.

Meanwhile, 1,500 sq km of 3D seismic from the Pitu block in Baffin Bay is being processed. Fully migrated results are expected in 2012. The results of the shallow borehole geochemical analysis confirmed microseepages of oil and gas in the immediate vicinity of the main structures identified on the previous 2D seismic data.

The 3D seismic shot over parts of southern Greenland is being processed. Fully migrated results are expected in the first half of 2012.

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