Cairn Energy reveals 2020 exploration budget guidance

UK-based oil and gas exploration and production company Cairn Energy, whose portfolio includes acreage in Mexico, Nicaragua and Suriname, expects exploration spending in 2020 to mirror that earmarked for this year.

During the junior operator’s first half results presentation on Tuesday, management said that Cairn would like to allocate around US$150mn next year for exploration compared to US$165mn in 2019.

Of that US$165mn, US$75mn is for Mexico and US$70mn for other exploration, including that in Nicaragua and Suriname.

Exploration director Eric Hathon highlighted a six-well drilling program for 2019-20 in Mexico. Through year-end, two wells are scheduled to be spudded at block 9 and two wells at non-operated blocks 7 and 10.

“In Nicaragua, we are working with our partner Equinor to mature multiple interesting prospects and leads on newly acquired seismic with the possibility of a well as early as 2020,” he added.

And offshore Suriname, after the acquisition of over 4,500km of 2D seismic, 3D surveys are planned for 2020.

Cairn’s 1H19 report announcement is available here.

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