Cairn Energy has entered into a farm-in agreement with Kosmos Energy and the Moroccan National Oil Company (ONHYM) for a stake in an exploration block offshore North West Africa, while also farming into another Atlantic Margin license off Africa’s west coast.

The UK independent has taken a 20% non-operated interest in the Cap Boujdour permit offshore Morocco, where a well is scheduled for drilling in the second half of 2014, as well as finalising a previously-revealed farm-in to Chariot Oil & Gas’ C-19 block offshore Mauritania (see DI, 12 August 2013, page 7).

Cairn is already underway with the drilling of a deepwater wildcat offshore Morocco, on the F prospect in the Foum Draa block using the Cajun Express semisubmersible rig (see separate story, page 4).

The first deal, says Cairn, enables it to access frontier acreage with transformational potential and containing a range of exploration play types. In the event of success, the area has significant follow-up potential, it added.

The permit lies around 50 km offshore and covers an area of 27,700 sq km in the Aaiun Basin. Water depths range from 1,000-3,000 m (3,281-9,843 ft). The permit is covered by a regional 2D grid and 2,000 sq km of 3D seismic. According to Cairn, Kosmos has identified three prospects within the 3D area with the largest of these, Gargaa, in around 2,135 m (7,000 ft) of water.

Under the terms of the farm-in agreement, which is subject to Morocco Government approval, Cairn will pay a promoted share of future exploration costs towards a 3D seismic survey, an exploration well planned for 2014 and, if successful, two appraisal wells, all subject to a maximum expenditure cap.

Simon Thomson, chief executive at Cairn, said the new acreage “offers transformational exploration potential in a frontier region where Cairn is already well established”.

The Mauritania deal, meanwhile, sees Cairn farm-in via its wholly-owned subsidiary Capricorn Mauritania Ltd. to the C-19 licence held by Chariot after receiving approval from the Ministry of Hydrocarbons in Mauritania.

As part of the agreement Cairn has committed to pay approximately US $26 million for the costs of 3D seismic data acquired by Chariot on the block and other back costs incurred, which has now been received. Chariot will now hold a 55% stake and operatorship in the block, while Cairn will have 35% and the Société Mauritanienne des Hydrocarbures (SMH) 10% as a carried interest.

Following interpretation of the final Pre-Stack Depth Migration (PSDM) volumes, due to be received in November, a resource update will be published in Q1 2014, says Cairn. Well planning and the evaluation of partnering options will start thereafter, it added.

Water depths in block C-19 range up to more than 2,000 m (6,562 ft), with the permit covering 12,175 sq km. The block lies just to the north of existing discoveries in Mauritania and contains the Tertiary and Cretaceous deepwater fan plays proven further south along the West African margin.

If, before the end of the first phase of the licence (15 June, 2015), Cairn were to increase its interest to greater than 50% then Chariot will support Cairn’s application for operatorship of the block.

  • Also offshore Morocco, fellow indie Kosmos Energy recently entered into three farm-out agreements with BP for three ultra-deepwater blocks in the Agadir Basin. BP will acquire a non-operating interest in each of the Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks. The UK major will fund Kosmos’ share of the cost of one exploration well in each block, subject to a maximum cost per well. In the event a second exploration well is drilled in any block, BP shall pay a disproportionate share of the well cost subject to a maximum cost per well. BP will also pay its proportionate share of past costs.

Kosmos also recently signed a petroleum agreement with the Office National des Hydrocarbures et des Mines (ONHYM) covering the Tarhazoute Offshore block, previously held under a reconnaissance contract. The block is contiguous with the Essaouira and Foum Assaka blocks and will allow integrated exploration over a significant portion of the Agadir Basin. Drilling will get underway during the first half of 2014.

Offshore