Cairn confirmed on 10 March 2020 that the sale of its wholly-owned subsidiary Capricorn Norge AS was completed in late February 2020 (financially effective from 1 January 2020). The company announced in November 2019 that it was selling the subsidiary to Solveig Gas Norway AS for the sum of USD 100 million. At the turn of 2019 / 2020 Solveig was re-named Sval Energi. In February 2020 Capricorn held interests in 15 licences in Norway and operated three of these. It was then awarded a further three licences (all operated) in March 2020 under APA 2019. The licences include two small discoveries (Agat, Jette) and the Nova field which is under development and due onstream in Q3 2021. Capricorn drilled its first two operated wells on the NCS in 2019 â both were dry holes. A well is also planned in 2020 on the Duncan prospect. The company was pre-qualified as an operator in Norway in late 2015 and in February 2016 it was awarded its first licence. Cairn will use the proceeds of the sale to support its ongoing business (which includes assets in the UK). Sval Energi, established in 2011, was acquired in 2019 by HitecVision. It is a significant owner in Gassled (15.55%) and has recently been involved in deals to acquire interests in Polarled and Duva. Its strategy is to become an integrated, infrastructure-based E&P operating company.  Capricorn's first NCS operated well was 6508/1-3 which targeted the Lynghaug prospect in PL 758. A 170 m section of Are Formation (the primary objective) was encountered with around 50 m of net sandstone interbedded with claystones and coals. Failure was put down to migration. If it had been successful it would have been a play opener for the Nordland Ridge and could have been developed as a tie-back to the Norne FPSO. Pre-drill reserves estimates were 70 MMboe.  Its second well, 6608/11-9, was drilled on the Godalen prospect in PL 842. Godalen had an Upper Jurassic Rogn Formation objective with potential to contain 90 MMboe and could also have been tied-back to Norne in the event of a discovery. The Rogn Formation was absent, although there were some sands (total 40 m) in the Upper Jurassic Melke Formation (118 m total section).   Nova was previously called Skarfjell and was discovered in 2012 by 35/9-7. Its reservoir is the Upper Jurassic Heather Formation. The discovery was appraised over the following year and the PDO was submitted in May 2018 (and received approval four months later). Operator Wintershall Dea intends to recover 77 MMboe from the field over an eight-year period using two 4-slot subsea templates (installed in May 2019) sited one kilometre apart (the northerly template will host three water injectors and the southerly one will have three producers). The templates will be tied back to Gjoa which lies approximately 16 km to the northeast. There is also provision for a third template with four more wells if needed. Gjoa will supply Nova with power (from shore), gas lift and water injection. Drilling of six wells will commence in H1 2020 and the installation of the other facilities will take place in 2019 / 2020. A new topsides module will be installed at Gjoa in May 2020 where processing will take place prior to export via the Troll oil pipeline to Mongstad. Maximum production is expected to be 50,000 boe/d and investment is estimated at NOK 9.9 billion (USD 1.23 billion). The field consists of three segments and the initial development relates solely to Nova Main, with the Southeast and East segments representing future upside potential.
Cairn Energy plc, Solveig Gas Norway AS, Sval Energi AS Sale of Capricorn Norge AS completed