Cairn Energy in Senegal farm-in

Following a difficult year, Cairn Energy has signed a farm-in agreement with Australia’s FAR to explore three blocks offshore Senegal. A well is planned for early 2014, and Cairn will cover 100% of drilling and testing costs in return for a 65% stake in the Rufisque, Sangomar and Sangomar Deep blocks in the Mauritania-Senegal-Guinea-Bissau Basin. The investment will have a cap of $80m and Cairn will pay FAR $9.8m for retroactive costs.