The following operational update relates to Cairn's current five well exploration drilling campaign offshore Greenland. Operations will continue to the end of November to allow activities on the last two wells in the Atammik block to complete.

AT7-1 Well: Atammik Block, South Ungava Area

The Leiv Eiriksson is drilling the AT7-1 well in the Atammik block, located in 909 metres (m) of water and 202 kilometres (km) offshore Nuuk.

The well has encountered a 113m gross interval with approximately 50m of reservoir quality sands of Cretaceous age. Mud losses and poor hole conditions have hampered the full evaluation of this interval which is of potential interest because of oil and gas shows. Part of this interval is behind casing.

An intermediate logging programme is ongoing across the cased and open hole sections of the well following which the well will be deepened to reach the anticipated Total Depth (TD). At this point a cased hole Modular Dynamic Tester (MDT) programme is planned to try and recover fluid samples to surface.

AT2-1 Well: Atammik Block, South Ungava Area

The Ocean Rig Corcovado is currently operating on the AT2-1 well, the fifth well in the 2011 exploration drilling campaign, located in a water depth of 1,045m and approximately 180km offshore Nuuk and 46km from AT7-1. The well has reached TD at 4,847m in Cretaceous sediments having encountered minor hydrocarbon shows. Logging operations are currently under way.

A further update on the well results and the exploration implications of the operations in 2011 will be provided at the end of the programme.

Cairn in Greenland

■The Group's strong financial position and entrepreneurial exploration focus has allowed it to build a strategic and leading early entry position in multiple frontier basins offshore Greenland, a country which Cairn believes has the necessary geological ingredients for exploration success. Cairn currently operates 11 blocks, with a combined area of 102,000km2, which is equivalent to 15 quadrants or 450 blocks in the UK North Sea. ■Cairn remains encouraged by the prospects and opportunities presented by exploration offshore Greenland. Having drilled eight of the fourteen wells offshore Greenland to date, Cairn's multi-year, multi-basin campaign in this frontier location ensures that Cairn has a considerable amount of exclusive data and knowledge which Cairn is building upon every day as the programme continues. ■Ø Cairn continues to approach the campaign with a focus on safety, in terms of people, the environment and equipment ■Ø Cairn through its subsidiary, Capricorn, operates 11 blocks offshore Greenland. ■Cairn is drilling five wells offshore Greenland during 2011. Two state-of-the-art rigs are being used for the drilling and exploration programme - the Ocean Rig Corcovado, a sixth generation drill-ship, and the Leiv Eiriksson, a fifth generation semi-submersible. ■Up to fourteen vessels are supporting the drilling programme. They provide cover for emergency response, rig stand-by, ice management, anchor handling, oil spill response and re-supply operations. ■Cairn has carried out extensive Environmental and Social Impact Assessments to identify how potential environmental and social impacts of the drilling programme can be avoided or mitigated. ■Only twelve exploration wells have been drilled in offshore Greenland to date, five of which were drilled in the 1970s, one in 2000, three in 2010 by Cairn Energy and five to date by Cairn Energy in 2011.

Tags: Cairn Energy PLC