Shares in Scottish oil explorer Cairn Energy jumped today after one of its partners announced an oil discovery in Mexico.
Italian energy group Eni said it had found oil on the Saasken Exploration Prospect and said the new discovery could hold between 200 and 300 million barrels of oil.
Cairn has a 15% working interest in the prospect which lies 65km off the coast.
The partners said they will now carry out further work to assess the discovery and to exploit nearby synergies in order to start the studies for a commercial development.
Operations are also ongoing at a nearby well where Cairn has a 50% working interest.
Shares in Edinburgh-based Cairn rose by more than 5% in early trading today.
Last month Cairn said the first oil from its Sangomar field off the coast of Senegal is expected to flow in 2023 after the firm signed its final investment decision documents with the West African country’s government.
Cairn and its joint venture partners – FAR and Woodside, which will operate the field – drilled 11 exploration and appraisal wells off the coast of Senegal between 2014 and 2017, marking the nation’s first deep-water targets. So far, $1 billion has been invested in drilling, with more than $4 billion due to be pumped into the country as part of the field development plan.
