UK-based Cairn Energy has reached an agreement to farm-in as operator on the Foum Draa blocks 1-3 offshore Morocco for US$60mn as the firm looks to expand its exploration portfolio
Cairn will acquire an aggregate 50 per cent interest from current licencees, San Leon Energy, Serica Energy and Longreach Oil and Gas and will become the operator of the exploration block, subject to regulatory approvals. The farm-in is expected to be completed in Q4 2012.
The Foum Draa Block is located offshore southern Morocco in water depths of 500-2,000 metres and covers an area of 5,090 sq km, with two key prospects on the block having already been identified.
"We welcome Cairn as a new partner in Foum Draa. Given the materiality of the many prospects already identified, we are delighted that Cairn's deep water drilling expertise will assist in bringing forward an early drilling programme," said Serica chairman and interim chief executive Tony Craven Walker.
The partners plan to drill one or more deep water exploration wells in the second half of next year, Cairn said.
The Foum Draa blocks are adjacent to the Juby Maritime I – III blocks which Cairn now also operates 37.5 per cent through the Nautical acquisition.
Following completion of the farm-in, the partners in the block will be Cairn (50 per cent) ONHYM (25 per cent), San Leon (14.2 per cent), Serica (8.3 per cent) and Longreach (2.5 per cent).
