Cairn takes charge of five North Sea licenses

Offshore staff

LONDON – Deltic Energy has completed a farm-out agreement with Cairn Energy subsidiary Nautical Petroleum concerning five licenses in the UK southern North Sea.

This follows regulatory approvals from Britain’s Oil & Gas Authority. The two companies have now formed joint operating agreements for each of the five licenses.

Cairn has paid Deltic a consideration of $1 million toward historic back cost, and now holds a 60% operated interest in licenses P2428 (Cupertino Area) and P2567 (Cadence), and a 70% operated stake in P2560, P2561 and P2562, located between the Breagh and Tolmount gas fields.

Deltic holds the remaining interests.

Cairn is funding 100% of an agreed work program for all the licenses up to drill or drop decision. And following a drilling decision on either of P2428 and P2567, the company will pay 70% of the costs of whichever well is drilled first, subject to a cap of $25 million. 

ION Geophysical has started acquiring 700 sq km (270 sq km) of 3D seismic over P2428 and surrounding areas, focused on the Plymouth Zechstein reef prospect.

The survey should finish before the end of November, with processed data to be delivered next spring.

11/08/2021