Cairn confirmed in its full year announcement in March 2020 that it has agreed two deals for licences P2379 and P2380 with Shell. Shell is to acquire a 50% interest in licence P2379 which contains the Diadem prospect and is a firm well commitment. In exchange for this interest Cairn will acquire a 50% interest in licence P2380 which has a firm well commitment on the Jaws prospect. The Jurassic Fulmar sandstone play is prolific in the area and if the wells are successful then they could be tied into the Nelson facilities. The deals are pending OGA approval and it is likely that the wells will be drilled in 2H 2020 / 1H 2021.  The commitment well for Jaws is required to be drilled to a depth of 3,730 m or the base of the Upper Jurassic. P2380 was awarded in the 30th Offshore licensing round which focussed on âmatureâ areas of the North Sea and comprises of just one block â 22/12d. Any potential discoveries could be used to extend the field life at Nelson. Shell also picked up licence P2377 in the 30th Round which also contains a firm commitment well on a prospect known as Orlov and is within reach of a tie-back to Nelson.   In September 2019 Zennor Petroleum and ONE-Dyas pulled out of licence P2379 leaving Cairn as the sole participant. The licence comprises of four blocks â 22/11b, 22/12b, 22/16b and 22/17c and contains three discoveries 22/11b-3 (Lima), 22/12a-10 (Phoenix) and 22/16-6 (Dalziel). The first of the three discoveries was 22/12a-10 (Phoenix) back in 2004. The discovery was made by Shell as a near field exploration project for the Nelson facilities. The discovery was appraised in 2010 with well 22/12a-12 which confirmed oil bearing sands within the Forties Sandstone Member within a relatively simple and low risk 4-way dip closed structure. A sidetrack of the appraisal well 22/12a-12Y was kicked-off and penetrated the reservoir outside of the structure and did not encounter any hydrocarbons. 22/11b-13 (Lima) was discovered in 2008. The well targeted three Jurassic pods. Of the three pods, only one (Fulmar 1) contained oil which is stratigraphically trapped within thin sandstones pinching out before the pod. The most recent discovery was 22/16-6 (Dalziel) in 2015. This was drilled by ENGIE targeting the Upper Jurassic Fulmar prospect. It encountered oil and tested in excess of 8,000 boe/d.  Following completion of the deals interest in the licences will be held by 50% each between Cairn and Shell.
Cairn is exchanging a non-operating 50% stake with Shell in so far wholly-owned P2379 (Diadem prospect) in return for 50% in Shellâs P2380 (Jaws prospect). Partnership to become 50:50 in both.