Realising The Deep Water Hydrocarbon Potential of Senegal

Realising the Deep Water Hydrocarbon Potential of Senegal*
John Clayburn1
Search and Discovery Article #70345 (2018)**

Posted June 18, 2018
*Adapted from oral presentation given at the Discovery Thinking Forum AAPG/SEG 2017 International Conference and Exhibition, London, England, October 15-18,
2017
**Datapages © 2018 Serial rights given by author. For all other rights contact author directly.
1
CARIN Energy PLC, Edinburgh, Scotland, United Kingdom (John.Clayburn@cairnenergy.com)
Abstract
The AAPG Search and Discovery forum is designed to highlight new discoveries that have surprised the industry and provided important
learnings for geoscientists for future exploration. The SNE discovery, in particular, is one such example which was not seen by the industry
despite many years of study in the basin and was (wrongly) considered a high-risk exploration well when identified.
Two new deepwater wells were completed by Capricorn Senegal, a subsidiary of Cairn Energy, in 2014 offshore Senegal. These were the first
deepwater wells in the country (excluding Kora-1 in the joint administered AGC). Both these wells are significant new oil discoveries and open
new plays in the region. Both these plays were in an area of the world (NW Africa) that was receiving close attention from the Industry
especially since the Jubilee discovery by Kosmos in Ghana. What is significant is that neither play was identified by the operators who had
operated the blocks from 2004-12 and done extensive geological work. Furthermore, the plays were not initially discovered by booming
amplitudes as many of the most recent large play openers have been (in Ghana, Uganda, Mozambique, Guyana, and Tortue in Mauritania)
although amplitudes did help to de-risk the play to some extent after the play was identified. Although Conoco and Cairn both identified the
Fan play, no company apart from Cairn identified the SNE play, and almost all companies saw the subsequent wells as extremely high risk.
Why was this, and what are the lessons learned for successful exploration?
Subsequently Cairn and partners have drilled eight appraisals on the SNE discovery (two with further exploration targets) which have increased
STOIIP estimates and progressed the discovery towards commerciality. Cairn has a 40% Working Interest (WI) in three blocks offshore
Senegal (Sangomar Deep, Sangomar Offshore, and Rufisque) ConocoPhillips had 35% WI which it sold recently to Woodside, FAR Ltd 15%
WI, and Petrosen, the national oil company of Senegal 10%.
To be the first company to open a new play is one of the most significant ways to create value in Exploration. Although one in four new plays
may be serendipitously found, it is known that the primary key to success is completing full geoscientific analyses of basins on a regional scale
with the integration of as much data as possible. Play based evaluations are complimented by rigorous competitor intelligence and regular
government engagement. All companies must have an independent quality assurance process with the appropriate disciplines and correct
experience levels in the QA/QC team and the ability to harness the widest range of experience and knowledge from within their companies.
Ideally a management that has geoscience experience, or trusts its geoscientists and the process, is essential. Too often geoscientists miss
opportunities through cognitive bias or not fully and properly integrating the data. In many cases in-experienced staff are sent to data rooms
and have time only to listen to the operators (sellers) point of view. The danger (and hence higher risk) of farm-ins is always the limited time
for evaluation and so a good regional understanding is important. With integrated geoscience, strong accessible technical capabilities, and
advanced insight Cairn has opened up the West African margin between Senegal and Sierra Leone and these discoveries should act to
significantly enhance the economy and benefit the people of Senegal in the long term.
Reference Cited
Martin, L., I. Effimoff, J. Medou, and M. Laughland, 2010, Hydrocarbon Prospectivity of Offshore Senegal - Unlocking the Door to a New
Deepwater Petroleum Province: AAPG Convention, New Orleans, Louisiana, April 11-14, 2010, Search and Discovery Article #10278 (2010).
Website accessed June 2018.
Realising the Deep Water Hydrocarbon Potential of Senegal
A technically-driven success story challenging existing geoscience
paradigms: lessons for successful exploration
Dr. J.A.P. Clayburn, Cairn Energy PLC, October 2017
Disclaimer
These materials contain forward-looking statements regarding Cairn, our corporate plans, future financial
condition, future results of operations, future business plans and strategies. All such forward-looking statements
are based on our management's assumptions and beliefs in the light of information available to them at this
time.
These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual
results, performance and achievements may be materially different from those expressed in such statements.
Factors that may cause actual results, performance or achievements to differ from expectations include, but are
not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and
weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors
and other changes to business conditions.
Cairn undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn's
expectations with regard thereto or any change in circumstances or events after the date hereof.
2 Senegal: A Success Story, Cairn Energy PLC

Agenda
 Introduction
 Cairn entry into Senegal: How the plays were opened
 Why Discoveries were made when others thought it was too high risk?
 SNE-1 and FAN-1 discoveries
 Appraisal and Development
 Future work Adding Value: Further Exploration Potential
 Conclusion: What are the key factors in good exploration?

Introduction
Two New Plays Opened in an Active World

Internal Exploration Study 60%
 Critical success factors for

new play identification 50%
 Most Important is taking

care of the Fundamentals - 40%
Understand the Geology
30%
 Second is Serendipity - you
must be Active to Succeed 50%
20%
 Technology is an Enabler -
Important but does not 28%
Drive Exploration Success 10%
13%
4% 4%
0%
New Play Model Serendipity Technology Commercial Access

Cairn Energy PLC
Introduction
Introduction
About Cairn Energy PLC

 One of Europe’s leading oil and gas exploration and development companies, listed on
the London Stock Exchange
 Discovered and developed oil and gas reserves in locations around the world
 Headquarters in Edinburgh with offices in Stavanger, London, Mexico City and Dakar,
Senegal
 Focused on growing resource base in Senegal, Norway and the UK
 Additional interests elsewhere in Africa, Central America and the Atlantic Margin

Introduction
Track Record
 Experienced and successful exploration, appraisal and development operator
 Operations conducted onshore and offshore, shallow and deepwater, benign and harsh
weather environments
 Focus on highest HSE standards and sustainable development practices
 Model corporate citizen with demonstrable, successful record of community investment
 Successful track record of adding value to Joint Venture partnerships

 Delivered a series of flagship developments from exploration successes in South Asia
 Focus on monetisation of success
 In excess of US$4.5 billion (bn) returned to shareholders over last decade

 Commitment to continued delivery of value from discovery and development

Exploration
Regional Setting: Why was Cairn looking in this area?

 Exploration strategy focused on multiple play types
formed from break-up of supercontinent Pangaea
Foum
 Provides underexplored mature hydrocarbon basins of Juby

Draa
Morocco
Maritime
Mesozoic and Tertiary age with common geologic

themes Cap
Boujdour
 Experience in passive margin and rift basin exploration

with operational capability in frontier areas C-19
Mauritania
 Deepwater areas adjacent to shelf acreage where a

number of wells were drilled in 1960s and 1970s Senegal
 Wells encountered petroleum, demonstrating potential

for working hydrocarbon system, but without
confirming any commercially viable discoveries
 Utilising modern 3D seismic data and drilling capability,
Cairn’s recent programme and success in Senegal has
opened up a new and emerging hydrocarbon basin Contract Area
Global High: 550 Fracture Zone
Free Air at the time
Gravity Low: -170 Continent Ocean Boundary
Salt Basin

Exploration
Why Senegal?
 Previous offshore wells demonstrated oil on the Tiof Banda
shelf (Esso 1968-1972, Rufisque dome) Tortue-1 Chinguetti
Kosmos Tevet
Gas
 Seismic indication of hydrocarbons Discovery Mauritania
2015
Faucon
 Deep Sea Drilling Project wells further offshore
(1970s) indicated Cretaceous source rocks – seen Shell
1977
extensively on West African margin Esso

1969
 No wells previously in deep water, except the Gadiaga

Rufisque
Kora-1 well in AGC profund. Esso

4 Rufisque wells Senegal
 Cairn basin modelling suggested good chance of a 1968-1972
mature source kitchen FAN-1 Gambia
Sangomar
SNE-1
Why RSSD ?
(Rufisque, Sangomar and Sangomar Deep Blocks) Dome Flores
Oil and Gea
Guinea
Bissau
 Cairn’s basin modelling suggests mature HC source
Sinapa
kitchen within the western part of the RSSD block Guinea
 Several prospects and leads identified by Hunt and

Guinea
FAR on 3D seismic Gas
Senegal Basin Oil

Exploration
RSSD Exploration History

With Jubilee, Kora-1 and MSGB Gas Discoveries for Reference Operator
25000
Hunt FAR Cairn
100
TGS NWA
20000 m/c 2D
80
OIL PRICE ($ BARREL (inflation adjusted price))

CUMULATIVE SEISMIC (KM/KM2)
Rufisque Vanco 2D
CUMULATIVE NO. OF WELLS DRILLED

15000 Dome 2D
TGS Gambia 60
3D & SOSP 3D
10000
Shell 2D 40
ROP &
FAN-1 &
Sangomar
SNE-1
Deep 3D
Wolof & Discoveries
5000 Casamance Basin & Diola-1
RF-1 20
Rufisque Dome Jammah-1
Guembeul-1 & Teranga
Discoveries
0 0
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Year Jubilee Discovery Cairn Farm-in
FAR Farm-in COP Farm-in

Kosmos Entry
Kora-1

Exploration
LM_CVM-1
Geological Model: Hunt / Petrosen 2006, Adopted by FAR

1400
1500
Gamma(GRfinal) Resistivity(ILD)
0.00 100 0.10 1000 Top  The Jurassic to Cenomanian
-1500.00
-1500.000
is marked with a long lived carbonate
Cenomanian platform. Following the Cenomanian, during a period of quiescence,
1600
LM_CVM-1 the Turonian source

-1600.00rock was laid down in anoxic deep water
-1600.000
 Following deposition of the source, the platform was exposed and

1700
-1700.00
-1700.000
the carbonates karstified. The period is represented by the Senonian
unconformity
1800
-1800.00
-1800.000
 Post the Senonian unconformity, incised erosional shelf channels
transported paralic sands to the upper slope. Stacked seismic
1900
-1900.00
-1900.000
Top amplitude anomalies represent these deposits
Albian
2000
-2000.00
-2000.000
2100
-2100.00
-2100.000
2200
-2200.00
-2200.000
2300
-2300.00
-2300.000
2400
-2400.00
-2400.000
2500
-2500.00
-2500.000
2600
-2600.00
-2600.000
2700
-2700.00
-2700.000
Top
Aptian
2800
-2800.00
-2800.000
Original source Hunt published in Martin et al 2010

2900
-2900.00
-2900.000

3000
Exploration
Senegal - Plays and Leads: Hunt / FAR / Petrosen Post 3D

Senonian Unconformity Depth L Cretaceous
Carbonate shelf
Albian Margin play
Buried
hills Top
Aptian
3D line 1541
Santonian fans
173 sq km closure
in highlighted area
Slope fan play
N S N S
3d Line 9076
Depth
High amplitude Prospective

Upper slope dip closed
Fan complexes Interval
Senonian Unconformity
Turonian 3d Line 1541

Depth
Original source Hunt 2006 published in Martin et al 2010

Exploration
Cairn Views on the Existing Plays

Upper Cretaceous Fans: Identified. Hard thin loop: poor thin sands (carbonate cements?)
High trap risk. Low volumes envisaged

Exploration
Cairn View Initially on the ‘Albian Buried Hill’

 Not a ‘Buried Hill but a subaqueous Amplitudes shut off at closing contour
unconformity trap’; huge significance for
SNE later
 Regional and local knowledge lead Cairn to
have a different age for the target
 Did not see evidence of carbonates or
Karst at this level
 Noted the unusual semi conformable ‘soft’
amplitude and were intrigued
 The volumes were too small to go for the
block on its own
 Later work significantly downgraded this
prospect prior to drilling (the well driven
by the appraisal location)

Exploration
Cairn View of Aptian Karst Prospect

 Top Aptian Karst:
Strong seismic
evidence to
support the Hunt
– FAR karst
interpretation
Hugely
significant as it
fed into the
development of
the new SNE Play
 Became the
secondary target
of SNE-1

Exploration
Depth Section – Karst and the New Plays

 Concern over top seal in collapsed Karst area

Exploration
Pre-Drill Interpretation (Hunt / FAR)

W E
FAR Web page 2012 (label added)
Campanian - Maastrichtian
Santonian
Clastic
Reservoir
Turonian Carbonate
Cenomanian Reservoir
Source

Exploration
Two New Play Concepts – Pre-Drill Interpretation

W E
Sub-Aqueous Unconformity
Sands in the Albian

Prograding
Possible
Charge
from the
East
Santonian
(Albian
SR)
Clastic
Reservoir
Turonian Carbonate
Cenomanian Sands in the Albian
Reservoir
Source

Exploration
The Concept SNE Albian Platform Edge Clastic Play

Dec 2012: E
Flattened
TWT Section
SNE
Progrades
Top Carbonates

Exploration
Early Albian Depositional Environment

Exploration
Lower Albian Shelf Edge (Dec 2012, Farm-in Stage)

Attributes, Seismic Facies and Velocity Analysis Helped to Reduce Reservoir Risk
S N
Xline 3335
W E
Structural
contour
Inline 1750

Exploration
Results of Drilling Campaign

W Projected BEL-1 E
Projected FAN-1 Projected SNE-1
Sands in the Albian

Prograding
Santonian
Clastic
Reservoir
Turonian Carbonate
Reservoir
Source

Exploration
Many Companies saw the SNE-1 Well as Very HIGH Risk

 Four key reasons why many companies saw the SNE-1 well as very HIGH Risk
 In addition to the fact that none had identified the SNE Albian sand play, so all
companies were evaluating the Aptian Carbonates and so called Buried Hill
1. Source: the Turonian is immature in this basin

2. Charge, it is difficult to get hydrocarbons to charge the shelf
3. Trap: if you charge into and up the carbonate platform and unconformity
how will you stop it leaking in a fully carbonate system AND if you charge up
the unconformity you will get sands deposited along the transgressive
surface and leak the structure
4. Biodegradation: low temperatures on the Platform margin

Exploration
Regional Seismic Tie to DSDP367 Where is the SR?

DSDP 367 SW Sangomar NE
World class source rock Senonian Unc

TOC = 6-34% Early Tertiary
(Palaeocene)
HI = 450-650
Top Black Shale
(Turonian)
Source DSDP
TOC = 6-34%
HI = 450-650
Top L.Alb - Turonian Source rock
organi
c 150m
shales Spectrum VER01MWT-02
Neocomian black shale
Early correlation: Wedge matches input of Albian clastics

Exploration: Transformation Ratio (Type II B Kerogen) DKM-2
RF-2
DKM-2
RF-2
Turonian/Albian Source Rock Maturity – GG 32°C/km

Sensitivity : Modelling uncertainty: Shallow vs Deep Pick Interpretation
Shallow Pick Deep Pick (Turonian or Albian SR)
1560
1560
1550
1550
1540
1540
FAN-1 FAN-1
1530
1530
1520
1520
SNE-1 SNE-1
1510
1510
Turonian Shallow Interp. TR 0Ma Turonian Deep Interp. TR 0Ma

0 0.2 0.4 0.6 0.8 1 0 0.2 0.4 0.6 0.8 1
8 km 8 km
Low Turonian maturity

190 200 210 220 230 190 200 210 220 230
  Peak Oil Window within the FAN-1 fetch area

 Enough expelled volumes capable of charging platform
Pre-Drill modelling Jammah-1
prospects
Jammah-1

RF-2
DKM-2
RF-2
Turonian/Albian Source Rock Maturity – Tertiary H Pulse

Sensitivity : Shallow vs Deep Pick Interpretation
Shallow Pick Deep Pick (Turonian or Albian SR)
1560
1560
1550
1550
1540
1540
FAN-1 FAN-1
1530
1530
1520
1520
SNE-1 SNE-1
Turonian Shallow Interp. TR 0Ma _GG40 Turonian Deep Interp. TR 0Ma _GG40
1510
1510
0 0.2 0.4 0.6 0.8 1 0 0.2 0.4 0.6 0.8 1
14 km 14 km
190 200 210 220 230 190 200 210 220 230
Jammah-1 Jammah-1

RF-2
Albian/Older Source Rock Maturity

Sensitivity : GG 32°C/km vs Tertiary HP
GG 32°C/km Tertiary HP
1560
1550
1540
FAN-1
1530
1520 SNE-1
Top Albian Transformation Ratio 0 Ma _ GG40

1510
0 0.2 0.4 0.6 0.8 1
14 km
190 200 210 220 230
Jammah-1

Exploration
Charge/ Migration from the Basin to the Platform

Rufisque Dome and Gadiaga / Dam Niado: Oil in Senonian Sands
Seismic Line M84-13 RF-3 DKM-2 RF-2
1419m
TWT (seconds)
Base Tertiary 1845m
Base Campanian
Senonian U/C 4253m

Top Aptian
Top Neocomian
Jurassic
5 km CVM-1
 The Rufisque dome is a igneous upwelling creating a localised high BR-1

within the License area. The crest of the structure has been tested by
RF-1 (not shown ) and DKM-2 and two flank wells have also been drilled DKM-2
(RF-2 and RF-3). All three wells have encountered hydrocarbon shows RF-2
 RF-3 tested for oil in Senonian sands (16ft net pay) and RF-2 tested oil in
Cretaceous carbonates
 Fair to good oil shows were encountered in DKM-2 within the Tertiary
and Cretaceous aged sections
 Producing Fields: Gadiaga and Dam Niado in Upper Cretaceous sourced
from Turonian
Original source Hunt published in Martin et al 2010

Exploration
Encouraging Seismic Anomaly on the Platform

 Flat spot approximately 10km south of SNE-1
Mauritania
W E
Senegal
Gambia
FAN-1
SNE-1 Guinea
Bissau
Bright amplitudes
Line Guinea
and flat spot at crest location Gas
Oil
Maastrichtian
TWT: VA01-025
2D seismic VA01-025 TWT

Exploration
Pre-Drill Interpretation (Hunt/ FAR)

Trap: Transgressive lag following the coastal onlap of a sub-aerial unconformity will leak the trap
W E
FAR Web page 2012 Migration lines/ label added added

Sub-Aerial Unconformity
Santonian
Clastic
Reservoir
Turonian Carbonate
Cenomanian Reservoir
Source

Exploration
Jammah-1 Synthetic Well Tie

A A’
Platform Edge and so

called ‘’Buried Hill’’
Turonian seal and
reservoirs are expected
deepwater shales in the
to be within the
Campanian overlie the
Cenomania to Albian
unconformity.
Cenomanian shelf sands
underlain by Albian
S400
Senonian Unc (H200)
slope clastic sediments A
S420
S410
S480
S500
S550
V01FG-018 V01FG-001 A’

Exploration
Two New Play Concepts – Pre-Drill Interpretation

W E
Sands in the Albian

Prograding
Possible
Charge
from the
East
Santonian
(Albian
SR) Max Flooding Surface
Clastic
Reservoir
Turonian Carbonate
Reservoir
Source
The Major Senonian unconformity is Sub Aqueous Albian sands must have reached the basin

Exploration
Risk of Biodegradation – Buried Hill (Tertiary HP)
100
100
Mass Fraction Degraded
Reservoir Temperature
Incoming Oil API
Cumulative Oil API
80
80
Source: Turonian
Fetch area: 387.17 km2
Oil charge: 5848.40 mmbbls
Present res. Temp: 65
Reservoir Temperature (C)
Oil API after degradation: 34

Mass Degraded (%)
60
60
40
40
20
20
0
L.Cretaceous Paleocene Eocene Oligocene

80 70 60 50 40 30 20
Time in my
Exploration
Risk of Biodegradation – Buried Hill (Tertiary HP)
100
100
Incoming Oil API
80 100
100
Cumulative Oil API
70
80
Source: Turonian

Incoming Oil API
60
Cumulative Oil API
80
80
Source: Turonian
50


Mass Degraded (%)

Mass Degraded (%)
6060
60
60
Oil API Gravity

40
30
40
40
20
40
40
20
20
10
0
0
L.Cretaceous Paleocene Eocene Oligocene Miocene Plio. Q
80 70 60 50 40 30 20 10 0
Time in my
20
20
Casamance Wells SF4 and CM9 tested 34 and 32 API Oil from 700 m and 220 m,
respectively.
CM9 temp. of 42 C (uncorr.) @ 500 m

0
L.Cretaceous Paleocene Eocene O

34 Senegal: A Success Story, Cairn Energy PLC 80 70 60 50 40 3
Time in my
Exploration
North Fan location: N Fan Thin Hard Sands, Limited Column Height

Exploration
H180 Level: Class IV AvO

 COP viewed this level as a
Californian style Turbidite
 FAR linked it to a Fan as New
Age’s Al Hamdallilah prospect
 Cairn had non reservoir
interpretations

Exploration
Basin: Albian Sediments

H300 Amplitudes: Coast parallel, thermohaline influence and depth of burial issues
Conoco
happy with
pinchout
geometry

Discovery and Appraisal
The Opportunity – Two Discoveries

Pre-drill
 Active petroleum system with world class source rock
proven at FAN-1 Deepwater
North Fan
Prospect
 FAN-1 and SNE-1: discoveries in Albian sandstones

 Cairn’s preliminary evaluation: 7-8 play types Shelf Edge
Prospect
 Largest prospects drilled: two wells to test the highest

number of play types (4)
 SNE-1 results are in the upper range of initial estimates Post-drill
– mean values more than double pre-drill estimate

FAN-1
Discovery Well
 Source rock at FAN-1 better than expected, reservoir
quality under evaluation
 A number of prospects and leads under evaluation to
SNE-1
be matured as drillable targets Discovery Well

FAN-1 Discovery
3D view of top reservoir level
FAN-1
 Turonian-Albian reservoir – mediocre quality
 Hydrocarbon column >500m (net oil 29m)
 Oil gravity 28-41° API
 Presence and maturity of good quality source rock
proven on multiple levels
 HC presence confirmed from Turonian to Albian ~25km
Gross Oil (STOIIP) P90 P50 P10 3D view of top reservoir level with superimposed seismic amplitude
in place 250 mmbbls 950 mmbbls 2,500 mmbbls
FAN-1
FAN-1 reservoir level
Oil migration
~15km

FAN-1 Forward Programme

 FAN Appraisal scheduled 2017/2018
 Seismic reprocessing and reservoir
characterisation
 Ongoing analysis of rock and fluid samples,
well log data
 Remapping of the field boundaries and surfaces
 Evaluation Programme submitted
 Potentially multiple wells
 Contingent testing and coring of the
reservoir FAN-1
Discovery Well
 Aimed at confirming reservoir model,
commercial volumes and deliverability

SNE-1: Review, Initial Resources and Updates

SNE-1
 Dual target well – Albian clastics and Aptian NW A A’ SE
carbonates
 Oil and gas discovered – 2C resource 330mmbbls
 Reservoirs – Upper and Lower units
 32° API Oil Quality – Log, rock and fluid samples
 Clear Gas-Oil and Oil-Water Contacts
 Depth conversion indicates larger structure
0 1 2 km
 Drilling time and costs ahead of target
Scanning Electron Microscope Image Microscope Thin Section Sidewall Core Sample
SNE-1 reservoir level

0 100 0 1 2 3 4 0 1 2 3 4
µm mm cm

Cairn Energy PLC
Value Creation in Senegal

Eleven wells in three years;
two basin opening discoveries
and seven successful appraisal wells Third phase of Operational success
drilling programme provides options for
“Four wells completed underway commercialisation
“Two basin ahead of schedule
opening and under budget”
discoveries in first
twelve months of
operations”
Concept select
 Stena DrillMAX rig
 Contingent
contracted in lower
resource upgrade cost environment FEED
 Multi-well three
 Oil discovery year evaluation
plan presented  Gross oil in place  Two appraisal wells FID
 Cairn farm-in on SNE >2.7 b plus seven optional
FAN-1 to Government
as Operator wells including
of Senegal barrels
to 3 blocks
Senegal,
 Second exploration First Oil
65% WI Oil discovery  Phase two  Development prospects
SNE-1 drilling planning
 Farm
operations underway
down
commence
25%
2013 2016 2017 2018 onwards…

Development and Production – Senegal
SNE Development
Aligned approach to develop Senegal’s oil resources
Development Philosophy SNE Full Field Development Schematic
 JV principles for SNE development:
 Economically robust project with low breakeven FPSO
 Standardised, field proven equipment and

suppliers SHUTTLE
TANKER
WATER INJECTION
 Guided by international standards MANIFOLD
WATER INJECTION
 Attracts international project finance MANIFOLD
PRODUCTION
PRODUCTION
MANIFOLD
TREE
PRODUCTION
 These principles result in the JV pursuing: MANIFOLD
 A phased development concept BEL-1

GAS INJECTION WATER INJECTION
MANIFOLD MANIFOLD
 Consideration of re-deployment of suitable FPSO NORTHERN
SNE-2
vessels versus conversion / new-build BRANCH PRODUCTION
MANIFOLD
PRODUCTION
MANIFOLD
PRODUCTION
MANIFOLD
 Scalable subsea infrastructure SNE-1

TREE SNE-4
 …which should drive lower capex to first oil and (Typical) WATER INJECTION WATER INJECTION
MANIFOLD
lower overall project breakeven WATER INJECTION SNE-6
MANIFOLD
CENTRAL MANIFOLD SNE-5

BRANCH PRODUCTION
MANIFOLD
 Expressions of interest (EOI) have been PRODUCTION
SNE-3 PRODUCTION
MANIFOLD
Production
Gas Lift
Gas Injection
sought and received from contractors and SOUTHERN
BRANCH
MANIFOLD Water Injection
EHC Umbilical
Operators for subsea and FPSO Gas Export

SNE Development
SNE Field Characterisation SNE Reservoir Schematic
 Water depth (WD) 650 - 1,400 metres SNE-2 SNE-1 SNE-6
BEL-1 VR-1 SNE-3 SNE-5 SNE-4
 Following discovery well, seven further
penetrations have been completed on
SNE
 Eight DSTs* completed in four separate
wells (SNE-2, SNE-3, SNE-5 and SNE-6)
 Two distinct reservoir horizons S400 Upper
 S400 Upper reservoirs Reservoirs
 S500 Lower reservoirs
 Comprehensive data (including re-
processed 3D seismic) allows accurate
Scale at 2D
reservoir and fluid description BEL-1
0 2 4
 Environmental baseline survey complete Km

SNE-2
 Ongoing geotechnical survey to gather

metocean and seabed data VR-1 SNE-1 S500 Lower
SNE-6
SNE-4 Reservoirs
SNE-3 SNE-5
* Including interference test

SNE Development
Updated Gross Contingent Resources*
Reservoir and Oil Quality
 Good correlation of gross reservoir packages Contingent Resource (mmbbls)
 Connectivity in S400 upper reservoirs demonstrated by May 2016 1C 274 2C 473 3C 906
interference test in a clearly preferred orientation
 DST in S500 lower reservoir confirms expected good
inter-well connectivity
 Water flood planned for both sets of reservoir Contingent Resource (mmbbls)
 Crude quality suitable for major refinery markets in August 2017 1C 346 2C 563 3C 998
Africa, Europe and US, and expected to attract strong
pricing
* Resource estimates by ERC-Equipoise
N BEL-1 SNE-2 SNE-1 SNE-6 SNE-3 SNE-5 SNE-4 S

Upper Zone DST 1B
(11m + 12m)
combined maximum Upper Zone DST 1B
Upper Zone flowrate (18m + 8m)
DST Flowrate ~5,400 bopd maximum flowrate
~1,000 bopd ~4,200 bopd
Unstable due Upper Zone DST 1A Upper Zone DST 1A
to tubing (11m) (18m)
maximum flowrate maximum flowrate
Base Gas Cap ~4,600 bopd ~4,500 bopd
Base Oil
Column ~100m Lower Reservoirs Lower Zone DST
Stabilised but Upper Zone DST 1A Upper Zone DST 1B (15m +
constrained (15m) 5.5m)
flowrate maximum flowrate combined maximum flowrate
Schematic Cross Section ~8,000 bopd ~5,400 bopd ~5,200 bopd

SNE Development
Timeline
Production
 Targeting Final Investment Decision (FID) by end
First Oil
2018:
2021 - 2023
 Complete Front End Engineering and Design (FEED)
 Evaluation Report and Exploitation Plan to be
Detailed
submitted and approved by Government of Senegal Design &
Exploitation
Fabrication
 Transfer of Operatorship for development phase Plan Submission
FEED
Concept
Evaluation
Plan Select
Appraisal
Drilling
Discovery
2014 2 – 4 Years 3 – 5 Years

Exploration
Atlantic Margin - Senegal
Block Area ~7,100 km2
Third Phase of Exploration Drilling Commenced 2017 Water Depth:
100 – 2,000m DAKAR Senegal
 VR-1 exploration target on SNE appraisal well to test

deeper carbonate play
 Oil shows in tight formation
 FAN SOUTH-1 follow on to FAN-1 basin discovery SNE NORTH-1
Cairn (Operator) 40%

FAN-1 Woodside 35%
 Recovered 31° oil from lower Cretaceous, upper SNE-2 BEL-1

FAR 15% and
Petrosen 10%
Current Licences
Senegal
Cretaceous wet VR-1
SNE-3
SNE-1
SNE-6
Oil Discovery
Gas Cap
Prospects and Leads
SNE-4
 Net reservoir below pre-drill estimate, assessing FAN

SOUTH-1 SNE-5
30km Area
potential
 SNE NORTH-1 Northern test of SNE field play
 Discovery separate accumulation to SNE
 Gas and Condensate in S400 reservoir
 Oil in S500 reservoir below oil-water contact at SNE

 Demonstrates potential for additional finds in basin
Stena DrillMAX

Exploration – Senegal
Remaining Exploration Potential Around SNE

Sangomar Deep Offshore Block DAKAR
 SNE NORTH-1 40 – 80 mmboe (mean – P10) Gross Senegal
Mean Contingent Resource

 Additional potential 65 – 130 mmboe (mean – P10)
Gross Mean Prospective Resource Capitaine
Prospect
 Requires stratigraphic trap element to north
 Target for future appraisal
Rufisque Offshore Block

Rufisque Offshore
 Maturing leads on newly processed 3D seismic

 Capitaine prospect most attractive to-date SNE NORTH-1
Sangomar
 Regional focus for hydrocarbons Deep
Offshore
SNE North
Discovery
 Impact resource potential in shallow water FAN-1
 Would require standalone development SNE-2 BEL-1
Cairn (Operator) 40%
Woodside 35%
FAR 15% and
VR-1 SNE-1 Petrosen 10%
Sangomar Offshore Block SNE-6

Current Licences
Oil Discovery
SNE-3
 Multiple leads being matured SNE-4
Gas Cap
Prospects and Leads
 Within 30 km tie back distance of SNE FAN 30km Area

SOUTH-1 SNE-5 Sangomar
Offshore
 Lower commercial threshold

Conclusion
Conclusion
Key Lessons for Exploration

The opening of new plays requires the combination of:
 Detailed regional knowledge,

 Always having experienced staff in key datarooms with capability modelling and access
 Correct interpretation and integration of all available data, without cognitive bias to a
preferred model at odds with key pieces of data
 Modelling a range of uncertainties and unbiasedly risking of multiple scenarios
 Critically assessing the operators interpretations and plays
 An appropriate high quality QA/QC team, and process, is essential, tapping all
available knowledge in the company and being totally supported by upper
management (which should contain technically advanced members)

Acknowledgements
The RSSD JV partners

Petrosen, Woodside Energy, FAR Ltd and Cairn Energy
are gratefully acknowledged for permission
to present this paper
John Clayburn D.Phil (OXON) F.G.S.

Head of Exploration
 E-mail:
john.clayburn@cairnenergy.com
Tel: +44 (0)131 475 3039
Cairn Energy PLC

Realising The Deep Water Hydrocarbon Potential of Senegal

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Realising the Deep Water Hydrocarbon Potential of Senegal*

Search and Discovery Article #70345 (2018)**

2 Senegal: A Success Story, Cairn Energy PLC

 Conclusion: What are the key factors in good exploration?

3 Senegal: A Success Story, Cairn Energy PLC

Two New Plays Opened in an Active World

 Critical success factors for

 Most Important is taking

4 Senegal: A Success Story, Cairn Energy PLC

About Cairn Energy PLC

6 Senegal: A Success Story, Cairn Energy PLC

 Successful track record of adding value to Joint Venture partnerships

 In excess of US$4.5 billion (bn) returned to shareholders over last decade

7 Senegal: A Success Story, Cairn Energy PLC

Regional Setting: Why was Cairn looking in this area?

 Provides underexplored mature hydrocarbon basins of Juby

Mesozoic and Tertiary age with common geologic

 Experience in passive margin and rift basin exploration

 Deepwater areas adjacent to shelf acreage where a

 Wells encountered petroleum, demonstrating potential

8 Senegal: A Success Story, Cairn Energy PLC

extensively on West African margin Esso

 No wells previously in deep water, except the Gadiaga

Kora-1 well in AGC profund. Esso

 Several prospects and leads identified by Hunt and

9 Senegal: A Success Story, Cairn Energy PLC

RSSD Exploration History

OIL PRICE ($ BARREL (inflation adjusted price))

CUMULATIVE NO. OF WELLS DRILLED

FAR Farm-in COP Farm-in

10 Senegal: A Success Story, Cairn Energy PLC

Geological Model: Hunt / Petrosen 2006, Adopted by FAR

LM_CVM-1 the Turonian source

 Following deposition of the source, the platform was exposed and

Original source Hunt published in Martin et al 2010

11 Senegal: A Success Story, Cairn Energy PLC

Senegal - Plays and Leads: Hunt / FAR / Petrosen Post 3D

Slope fan play

High amplitude Prospective

Turonian 3d Line 1541

12 Senegal: A Success Story, Cairn Energy PLC

Cairn Views on the Existing Plays

High trap risk. Low volumes envisaged

Cairn View Initially on the ‘Albian Buried Hill’

14 Senegal: A Success Story, Cairn Energy PLC

Cairn View of Aptian Karst Prospect

15 Senegal: A Success Story, Cairn Energy PLC

Depth Section – Karst and the New Plays

16 Senegal: A Success Story, Cairn Energy PLC

Pre-Drill Interpretation (Hunt / FAR)

FAR Web page 2012 (label added)

17 Senegal: A Success Story, Cairn Energy PLC

Two New Play Concepts – Pre-Drill Interpretation

Sands in the Albian

18 Senegal: A Success Story, Cairn Energy PLC

The Concept SNE Albian Platform Edge Clastic Play

19 Senegal: A Success Story, Cairn Energy PLC

Early Albian Depositional Environment

20 Senegal: A Success Story, Cairn Energy PLC

Lower Albian Shelf Edge (Dec 2012, Farm-in Stage)

21 Senegal: A Success Story, Cairn Energy PLC

Results of Drilling Campaign

Sands in the Albian