Statoil joins Cairn on Baffin Pitu block off Greenland

Statoil ASA has acquired a 30.625% working interest in the Pitu license in Baffin Bay offshore Greenland from Cairn Energy PLC.

Cairn remains operator with 56.875% working interest, and Nunaoil AS has a carried predevelopment interest of 12.5%. The agreement is subject to final partner and Greenlandic governmental approval.

Pitu is adjacent to the Shell-operated Anu and Napu licenses, on which Statoil has working interests of 20.125% and 14.875%, respectively (see map, OGJ, Jan. 3, 2011, p. 71).

The current work program includes interpretation of 1,500 sq km of 3D seismic. The first exploratory period expires Dec. 31, 2014, and all initial work commitments have been fulfilled. The partnership will evaluate the seismic before deciding on drilling an exploratory well. Statoil will operate any future development.

Statoil drilled an exploratory well in the Fylla area west of Greenland in 1999 and relinquished this exploration licence in 2002 (OGJ Online, Jan. 1, 2001). Statoil is a member of the KANUMAS group in East Greenland.

Cairn noted that Statoil will pay a signature bonus, back costs, and promoted terms of future exploration expenditure on Pitu but that other details of the farmout are confidential.

Cairn said results of a 2011 seabed sampling program confirm new geochemical anomalies at the seabed above the prospective areas identified on the Pitu 2D seismic. These anomalies are related to microseepages of oil.

Meanwhile, Cairn said 1,500 sq km of 3D seismic shot over parts of southern Greenland is being processed, and fully migrated results are expected in the second quarter of 2012.

Evaluation is under way of the exploration programs and data acquired from eight Cairn-operated wells drilled in the last 2 years, and further seismic surveys and drilling are under consideration.