Analyst Presentation in Greenland May 2011 Discovering hidden value Discovering hidden value
Agenda Welcome and Overview Simon Thomson, Legal and Commercial Director, Cairn Energy Dr Mike Watts, Deputy Chief Executive, Cairn Energy 2011 Offshore Exploration Programme Richard Heaton, Exploration Director, Cairn Energy Jan…
Welcome and Overview Simon Thomson, Legal and Commercial Director, Cairn Energy Discovering hidden value Discovering hidden value
Group Overview Completion of the Vedanta transaction is awaiting Government of India approval Greenland has the potential for transformational growth Cairn continues to seek to add new opportunities Strong balance sheet provides…
Rajasthan Frontier Exploration to Production Frontier Exploration Exploration & Appraisal Development & Production 1995 - 2002 2003 - 2005 2005 - 2011 Mangala Mangala Processing N-I-NORTH N-C-L N-C-H N-C-F Terminal N-H-1 SHAKTI…
Greenland Overview Safe and efficient operations Cairn is operating offshore Greenland at the invitation of the Greenland Government Greenland Government has approved Cairn plans to drill up to four wells offshore Greenland from a…
Greenland Overview Prime Minister offshore visit July 2010 Greenland Prime Minister, Industry Minister and Head of BMP with Cairn staff visit Stena Forth Greenland Prime Minister and Industry Minister on bridge of Stena Forth We…
Greenland Overview Cairn Core Values Respect people, communities, the environment, rule of law and human rights Relationships transparent decisions and strong open lasting relationships with stakeholders Responsibility accountable…
Greenland Overview Cairn is the largest acreage holder and most active Operator in Greenland Cairn acquired 2D seismic GREENLAND database 85,000km Operated 3 arctic exploration wells in 2010 Up to 4 wells planned in 2011…
Welcome and Overview Dr Mike Watts, Deputy Chief Executive, Cairn Energy Discovering hidden value Discovering hidden value
Vision Discovering hidden value La Clairvoyance Rene Magritte
Greenland Analyst Investor Visit May 23-25 GREENLAND ICELAND Ilulissat Aasiaat Kangerlussuaq Nuuk Analyst Presentation in Greenland May 2011 Discovering hidden value 13
Greenland Scale of Leading Acreage Position in North Sea Context Cairn Licence Blocks in Greenland Maps at the same scale 102,000 km2 Equivalent to 15 UK North Sea Quadrants or Pitu 450 North Sea Blocks GREENLAND Baffin Bay…
Greenland Overview Geological framework of the offshore Greenland basins GREENLAND Source: Frogtech Analyst Presentation in Greenland May 2011 Discovering hidden value 15
Geological Ingredients For Success Source, Charge, Migration, Reservoirs, Traps and Seals Source: GEUS Lines courtesy of TGS, Cairn Analyst Presentation in Greenland May 2011 Discovering hidden value 16
Greenland 2011 Programme Up to 4 Exploration wells Three 3D Seismic Surveys Seven possible exploration drill sites prepared and with Government approval provides some Melville flexibility in the programme Sub Basin 1 x 3D (1,500…
Greenland 2011 Programme The four well campaign will test prospects with different structural styles and play types Targeting gross unrisked mean prospective resource potential of 3.2 billion boe Individual prospects estimated…
West Greenland Exploration Locations Atammik AT7-A Prospect Prospect LF6 Prospect LF7 Atammik AT2-B Prospect Gamma-B Delta-A Lines courtesy of TGS, Cairn Analyst Presentation in Greenland May 2011 Discovering hidden…
West Greenland Multiple Scope for Follow Up Prospects NW Prospect LF9 LF7 Prospect LF10 SE Mid Eocene Unc Top Palaeocene Unc Base Tertiary Unc Intra Cretaceous Pre Rift Unc Pre Rift Line courtesy of TGS…
West Greenland Basins Mean Prospective Resource and Technical Risk (POS) 30 25 Probability Of Success (POS) % PITU LADY FRANKLIN, 20 ATAMMIK Cretaceous & Pre Rift PITU SOUTH 15 GREENLAND Disko West NAPARIAQ, SIGGUK…
2011 Offshore Exploration Programme Richard Heaton, Exploration Director, Cairn Energy Jan Grzywacz, Principal Explorationist, Cairn Energy Pierre Eliet, Principal Explorationist, Cairn Energy Discovering hidden value Discovering…
2011 Offshore Exploration Programme Richard Heaton, Exploration Director, Cairn Energy West Greenland Greenland Exploration History Cairn Acreage Position Discovering hidden value Discovering hidden value
Greenland West Greenland Potential U.S. Geological Survey (USGS) Risked Yet to Find (YTF) volumes of 7.3 Billion bbls and 54 TCF (excluding South Greenland) 50% Probability of finding one field 50 million bbls Prospective Basinal…
West Greenland USGS Undiscovered Oil USGS Circum-Arctic Resource Assessment Arctic region risked oil YTF of 618 billion boe amounts to 13% global oil YTF Consistent methodology applied across entire arctic West Greenland basins…
West Greenland USGS Probability of Finding Oil USGS Circum-Arctic Resource Assessment 50% probability of finding a field 50 mmbbls in West Greenland PROBABILITY 100 50-100 30-50…
West Greenland UK and Norwegian North Sea Basins West Greenland basin area is North Baffin Bay Province approximately the size of the UK and Disko West Norwegian sectors Province of the North Sea UK and Nuussuaq Norwegian…
West Greenland Seismic and Well Database Cairn has assembled largest industry database consisting of: GREENLAND 120,000 line km 2D seismic of which 85,000 line km is Cairn acquired Nine offshore wells Regional gravity and…
West Greenland Exploration History Cairn entered 120.00 250000 2006 / 2007 Greenland at start of Licensing rounds CUMULATIVE LICENSED ACREAGE (KM2) CUMULATIVE NO. EXPLORATION WELLS new exploration phase EnCana and 100.00 Chevron…
Greenland Cairn Acreage Position BLOCK 2 QAMUT Cairn holds 11 blocks out of 20 Conoco Philips Global Greenland Ltd 61.25% DONG Greenland A/S 26.25% Nunaoil A/S 12.5% currently licenced BLOCK 5 ANU Shell Kanumas GDF Suez E&P…
2011 Offshore Exploration Programme Jan Grzywacz, Principal Explorationist, Cairn Energy Overview of circum-Greenland Hydrocarbon Potential and Discoveries Discovering hidden value Discovering hidden value
Greenland Circum-Greenland Hydrocarbon Potential and Discoveries Plate tectonic setting and hydrocarbon discoveries Source rocks and hydrocarbon occurrences Seeps Naturally occurring slicks Key wells Regional source rocks…
Circum-Greenland Hydrocarbon Discoveries and Shows Sverdrup Basin Ellesmere Island Statoil Barents Sea Numerous Oil and Gas Discoveries Skrugard Discovery April 2011 Drake Point Jurassic Gas Field 6 TCF 150-250MMBO reserves Cairn…
Greenland Plate Tectonic Reconstruction and Major Hydrocarbon Provinces Sverdrup Basin Pre Continental Breakup Ellesmere Island Barents Sea (Late Jurassic Early Cretaceous) North America and Europe one contintent - Laurasia Source…
West Greenland Conjugate Margin Source Rocks and Hydrocarbon Occurrences Known Source Rocks include: Ellesmere Island Cretaceous oil and gas prone source rocks Ordovician shales and marls - oil prone Upper Jurassic oil prone Scott…
West Greenland Working Hydrocarbon System - Nuussuaq and Disko Maraat-1 and oil seeps in capping volcanics In 1957, a 200m landslide in northern Nuussuaq exposed fresh iron sulphides to oxygen and exothermic reaction igniting…
West Greenland Working Hydrocarbon System - Kangamiut OFFSET WELL SUMMARY: KANGAMIUT-1 Drilled by TOTAL in 1976 Possible Santonian reservoir at 3706m MD Two direct indications of hydrocarbons; the gas to surface that was flared and…
West Greenland Working Hydrocarbon System - 2010 Well Results GAS OIL T8-1 +T4-1 +Alpha-1S1 Alpha-1S1 Typical Tertiary Well Results Well Results Pre-Tertiary marine signature (oil type similar to the onshore Cretaceous Itilli oil…
West Greenland Reservoir Potential - Basement Terranes West Greenland surrounded by Pre Cambrian shield areas These are provenance areas for high quality quartz rich sands deposited by large delta systems into the West Greenland…
West Greenland Reservoir Potential Cretaceous And Lower Tertiary Reservoirs Outcrop And Wells Offshore Wells Marine Sandstone Source:GEUS Analyst Presentation in Greenland May 2011 Discovering hidden value 41
West Greenland Reservoir Potential - Qulleq OFFSET WELL SUMMARY: QULLEQ-1 Drilled by Statoil in 2000 Located to test Direct Hydrocarbon Indicator (DHI) flat spot (marked CCR - cross cutting reflector opposite) Thick Campanian shale…
West Greenland Regional Trap Styles Detachment and faulted rollover Atammik tilted fault block Lines courtesy of TGS, Cairn Lady Franklin tilted fault block and drape Tertiary deepwater submarine fan; stratigraphic trap…
2011 Offshore Exploration Programme Pierre Eliet, Principal Explorationist, Cairn Energy 2011 Exploration Programme Discovering hidden value Discovering hidden value
Greenland 2011 Exploration Programme and Strategy Overview Builds on the findings from the 2010 drilling campaign Working hydrocarbon system Alpha-1S1 well oils T8-1 well biogenic and thermogenic gas GREENLAND 2011 Drilling…
West Greenland Basins Mean Prospective Resource and Technical Risk (POS) 30 25 Probability Of Success (POS) % PITU LADY FRANKLIN, 20 ATAMMIK Cretaceous & Pre Rift SOUTH 15 GREENLAND Disko West NAPARIAQ, SIGGUK…
Greenland 2011 Work Programme - Exploration Drilling and Seismic Campaign Up to 4 Exploration wells Three 3D Seismic Surveys Up to four primary exploration wells Lady Franklin LF7-C Melville Sub Basin 1 x 3D (1,500km2) Atammik AT7-A…
Greenland 2011 Work Programme Site Surveys Multiple programme objectives Environmental Base Line (EBL) survey Near surface and subsurface drilling hazard assessment Geochemistry and sub-crop rock sampling High resolution bathymetry…
Greenland Stratigraphic Boreholes and Geochemistry Marine stratigraphic boreholes planned for 2012 as part of an industry consortium Melville Sub Basin GREENLAND Pitu boreholes will now be undertaken next year as part of consortium…
2011 Offshore Exploration Programme Pierre Eliet, Principal Explorationist, Cairn Energy Baffin Bay Disko West Sigguk, Eqqua and Napariaq Delta-A well Gamma-B well Discovering hidden value Discovering hidden value
Baffin Bay West Disko Area Palaeocene and Cretaceous Reservoirs GREENLAND Pitu Napariaq Sigguk Ingoraq Onshore Eqqua Atammik Lady Franklin Kingittoq Qulleq Saqqamiut Salliit Uummannarsuaq Offshore…
Baffin Bay West Disko Area Structural Setting and Tectonic Elements Line courtesy of TGS Delta Structure Cretaceous Basins Extensive Cretaceous basins mapped in the West Disko Area Numerous structures identified and are well…
Baffin Bay West Disko Area Cretaceous Reservoirs and Basalt Extent Approx Delta-A 20 kms offset NW SE Source:GEUS Seismic Lines courtesy of TGS Approx 300 kms Extensive onshore mapping undertaken to delineate the…
Baffin Bay West Disko - Sigguk 2010 Alpha Well Results and Up-dip Potential Offset volcanics density distribution Density Alpha Unrisked Scoping Volumetrics Distribution Actual density distribution of the Through the volcanics in…
Baffin Bay West Disko - Napariaq High Graded Delta Prospect Delta-A projected NW SE Top Volcanics Base Volcanics Seismic Lines courtesy of TGS Intra-Cretaceous Top Palaeozoics 20km Analyst Presentation in…
Baffin Bay West Disko - Napariaq High Graded Delta Prospect Delta-A projected Delta Prospect Detail Delta-A New high quality seismic processing NW and imaging across prospect - TGS BB10 survey Thin or absent volcanics mapped on…
Baffin Bay West Disko - Eqqua Tertiary Sedimentary Systems Primary Tertiary sediment flow directions Gamma Prospect - Regional Context Tertiary delta systems deposit sediment towards the south/southwest across the West Disko Area…
Baffin Bay West Disko - Eqqua Regional Correlation: T8-1 to Gamma Prospect Gamma-B T8-1 SW NE Biogenic and Thermogenic Gas Top Possible Regional Volcanics Messinian Unconformity Gamma deep Deep regional Mesozoic…
Baffin Bay West Disko - Eqqua High Graded Gamma Prospect Combined Unrisked Scoping Volumetrics Gamma-B S for both Gamma structures N In place potential 10 Billion boe 10km Prospective Resource 3 Billion boe Mean Prospective…
2011 Offshore Exploration Programme Pierre Eliet, Principal Explorationist, Cairn Energy West Greenland South Ungava Basins Lady Franklin And Atammik Lady Franklin-7 well Atammik-7 well Discovering hidden value Discovering…
West Greenland South Ungava Basins Regional Composite Seismic Line SW NE Hekja High Nuuk Basin Lady Franklin Basin Lady Franklin LF7-C Prospect Atammik AT7-A Prospect Seismic Lines courtesy of TGS 440km Analyst…
West Greenland South Ungava Basins Main Sedimentary Basins 2011 Drilling programme is targeting Basins two independent basins in the South Volcanic Centers Ungava Area Highs The Lady Franklin Basin underlies the Davies Strait High…
West Greenland South Ungava Basins Petroleum System Elements Gas and Condensate discovered in Palaeozoic, Early and Late Cretaceous and Palaeocene on Labrador shelf Upper Bjarni sandstone reservoirs Excellent reservoir quality…
West Greenland South Ungava Basins Lady Franklin and Atammik Currently identified: Lady Franklin Atammik 9 prospects in Lady Franklin 5 prospects in Atammik LF9 LF8 Prospects have LF7-C stacked targets LF10 Proposed wells are…
West Greenland South Ungava Basins Lady Franklin - Source Kitchens and Migration Pathways Prospect LF6 Prospect LF7 Fetch LF6: 165 km2 Source Kitchen LF7 Fetch LF7: 175 km2 Seismic Lines courtesy of TGS LF6 LF5 Fetch…
West Greenland South Ungava Basins Lady Franklin LF5 Prospect SW Prospect LF5 NE A B Water depth: 1,340m Deep seated structure in centre of the basin Top Palaeocene: 2,220m Multiple objective intervals/targets Primary objective depth:…
West Greenland South Ungava Basins Lady Franklin LF5 Prospect Detail Prospect LF5 SW NE A B Seismic Lines courtesy of TGS Analyst Presentation in Greenland May 2011 Discovering hidden value 67
West Greenland South Ungava Basins Lady Franklin LF6 Prospect Prospect LF6 NNW SSE A B Water depth: 1,170m Stacked multiple objectives Top Palaeocene: 1,880m Independent Cretaceous Primary objective depth: 3,390m and Pre Rift…
West Greenland South Ungava Basins Lady Franklin LF7 and Sister Prospects NW Prospect Prospect Prospect SE LF9 LF7-C LF10 Seismic Lines courtesy of TGS 45 km Analyst Presentation in Greenland May 2011 Discovering hidden value 69
West Greenland South Ungava Basins Lady Franklin LF7 Prospect Detail NW SE Prospect Possible Hydrocarbon / Gas effect LF7-C Primary Play Cretaceous Reservoirs Secondary Play Pre Rift Reservoirs Seismic Lines courtesy…
West Greenland South Ungava Basins Lady Franklin LF7 Prospect Proposed Drilling Location Primary Objective Depth Map LF7 Unrisked Scoping Volumetrics In place potential 1.8 billion boe Prospective Resource 480 mmbbls Block follow on…
West Greenland South Ungava Basins Lady Franklin and Atammik Currently identified: Lady Franklin Atammik 9 prospects in Lady Franklin 5 prospects in Atammik Prospects have LF7-C stacked targets Proposed wells are AT7-A LF7-C and…
West Greenland Working Hydrocarbon System - Kangamiut Kangamiut-1 Evidence of a working petroleum system in the basin Possible Santonian reservoir at 3,706m MD Two direct indications of hydrocarbons; wet gas to surface that was…
West Greenland South Ungava Basins Atammik - Correlation to Kangamiut Kangamiut-1 AT7-A Seismic Lines courtesy of TGS 160 km Analyst Presentation in Greenland May 2011 Discovering hidden value 74
West Greenland South Ungava Basins Atammik - Multiple Prospects Mid-Eocene Unconformity AT7 prospect AT1 prospect AT2 prospect AT3 prospect Top Paleocene Unconformity Base Tertiary AT6 prospect Cretaceous Marker…
West Greenland South Ungava Basins Atammik - Source Kitchens and Migration Pathways Atammik AT7-A Prospect Fetch AT7/AT1: 515 km2 AT7 Seismic Lines courtesy of TGS Atammik AT2-B Prospect AT1 Fetch AT2/AT3/AT6 260…
West Greenland South Ungava Basins Atammik AT1-A Prospect Atammik AT1-A Prospect Seismic Lines courtesy of TGS Analyst Presentation in Greenland May 2011 Discovering hidden value 77
West Greenland South Ungava Basins Atammik AT2-B Prospect Atammik AT2-B Prospect Seismic Lines courtesy of TGS Analyst Presentation in Greenland May 2011 Discovering hidden value 78
West Greenland South Ungava Basins Atammik AT7-A Proposed Drilling Location Atammik AT7-A Prospect Seismic Lines courtesy of TGS Analyst Presentation in Greenland May 2011 Discovering hidden value 79
West Greenland South Ungava Basins Atammik Prospect AT7 AT7-A Prospect AT7 Unrisked Scoping Volumetrics well location In place potential 1.2 billion boe Prospective Resource 350 mmboe Block follow on prospective resource potential 1…
Lady Franklin And Atammik Prospective Resource OIL OIL UNRISKED PROSPECTIVE UNRISKED PROSPECT RESERVOIR PROSPECT RESERVOIR PROSPECTIVE OIL OIL RESOURCE (MMB) RESOURCE (MMB) Pmean Cretaceous 143 Pmean L. Cretaceous 176 Cretaceous…
2011 Offshore Exploration Programme Jan Grzywacz, Principal Explorationist, Cairn Energy South Greenland Acreage Prospectivity And Activity Review Proposed 3D Seismic Programme Discovering hidden value Discovering hidden value
South Greenland Regional Plate Reconstruction Hekja Labrador Kangamiut Nukik Five significant gas + condensate GREENLAND discoveries in 1970s, recent Snorri 1975 industry interest evidenced in 2008 EastCan Qulleq bid round…
West And South Greenland Regional Exploration Implications From Labrador Shelf During the 1970s and 1980s, 27 wells were drilled in the Saglek and Hopedale Basins in adjacent Canadian waters In the basin, the exploration success…
South Greenland Deep Water Leads and Prospects Cluster Unrisked Scoping Volumetrics In place potential 7 billion boe Prospective Resource 2 billion boe Fan Complex, Drape Closures SSW Above Rotated Fault Blocks NNE Planned 3D…
South Greenland Provisional Seismic Migration Conjugate rift margin to the Labrador Shelf Rotated fault blocks Tertiary sediment drape bright amplitudes Tertiary ponded sediments Analyst Presentation in Greenland May 2011…
South Greenland Hibernia Analogue South Greenland A Structure Hibernia Field Discovered in 1979 1.244 BBO 1.8 TCF Gas Reserves Stacked Pay in Early Cretaceous sands Max Production 220,000 BOPD Hibernia Structure Sections…
South Greenland Seabed Sampling Successful sampling 8 kms across surface outcrops equivalent of drilling a vertical borehole approximately 1.6 kms in depth SW NE 8.0 kms 1.6 kms Analyst Presentation in Greenland May 2011…
2011 Offshore Exploration Programme Pierre Eliet, Principal Explorationist, Cairn Energy Northern Baffin Bay Pitu Prospectivity And Activity Review Proposed 3D seismic programme Discovering hidden value Discovering hidden…
Northern Baffin Bay Pitu High Graded Prospect Block Unrisked Scoping Volumetrics In place potential 10 billion boe Prospective Resource 4 billion boe NW SE Planned 3D Seismic Survey 1,500km2 Pitu: Cairn, Nunaoil…
Northern Baffin Bay Pitu Regional Seismic Line Example Baffin Basin Kivioq Basin Melville Bay Ridge Melville Bay Graben Pal-Eocene Rift Seq Late Cret Rift Seq E. Cret Rift Seq Pre-Cretaceous Rift Seq Seismic line…
Northern Baffin Bay Pitu Regional Seismic Line Example Seismic line courtesy of TGS Deep extensional basins present with sufficient depth of burial to potentially form generative kitchens Extensive structuration, rollovers,…
Northern Baffin Bay Pitu Evidence of a Working Hydrocarbon System Shallow hydrocarbon pockets Seismic line courtesy of TGS Analyst Presentation in Greenland May 2011 Discovering hidden value 93
Northern Baffin Bay Pitu Evidence of a Working Hydrocarbon System Possible hydrocarbon anomalies conforming to structure Potentially ponded onlap axial systems Regionally large bright soft at the top of a major unconformity May…
Northern Baffin Bay Pitu Evidence of a Working Hydrocarbon System - Detail Possible hydrocarbon anomalies conforming to structure Seismic line courtesy of TGS Analyst Presentation in Greenland May 2011 Discovering hidden value 95
2011 Offshore Exploration Programme Jan Grzywacz, Principal Explorationist, Cairn Energy Northern Baffin Bay Pitu Prospectivity And Activity Review Proposed 3D seismic programme Discovering hidden value Discovering hidden…
3D Seismic Operations Pitu And South Greenland Geometry of 3D Array Cable spread 1.2 x 8.0 kms Deflector Deflector Source Source Umbilicals Arrays Source Arrays Dilt floats Spread rope Spread rope Deflector…
3D Seismic Operations Pitu And South Greenland Annual Sea Ice Conditions 1 July 2007 2008 1.2 0.7 2009 2010 Ice (c) 0.3 Source DCRS Source: Composite from B. Curry, C. Lee and B. Petrie, Bedford Institute of…
3D Seismic Operations Pitu And South Greenland Ramform 3D Vessel and Support Source PGS Analyst Presentation in Greenland May 2011 Discovering hidden value 97
2011 Offshore Exploration Programme Richard Heaton, Exploration Director, Cairn Energy Summary Discovering hidden value Discovering hidden value
Greenland Exploration - Summary West Greenland is a virtually unexplored multi- billion barrel potential hydrocarbon province Cairn has built a large, diversified acreage position of 102,000 km2 Cairns 2011 exploration drilling…
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