document: Cairn confirmed in its full year announcement in March 2020 that it had agreed an asset exchange agreement with Shell involving two licences P2379 (blocks 22/11b, 22/12b, 22/16b and 22/17c) and P2380 (block 22/12d). The exchange concerning the two licences was complete on 23 June 2020. In the UK, Cairn operates through its wholly owned subsidiary - Nautical Petroleum. Shell has acquired a 50% interest in licence P2379 which contains the Diadem prospect, the licence has a firm well commitment that is expected to be drilled in 2022. In exchange for the P2379 interest, Cairn has acquired a 50% interest in licence P2380 from Shell. The P2380 licence has a firm well commitment well on the Jaws prospect, which is expected to be drilled in 2H 2021. 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 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.
summary: United Kingdom (Central Graben Province), Cairn confirmed in its full year announcement in March 2020 that it had agreed an asset exchange agreement with Shell involving two licences P2379 (blocks 22/11b, 22/12b, 22/16b and 22/17c) and P2380 (block 22/12d). 