Another encouraging oil find off Mexico has given a boost to Cairn Energy. Early estimates from the Sayulita prospect, in the Cuenca Salina area of the Sureste Basin, suggest it could hold up to 200 million barrels of oil.
The drilling there is only about nine miles from the Saasken find that was discovered last year and is estimated to have as much as 300 million barrels. A further well at Saasken is to be drilled before the end of the year to provide additional data on the amount of oil.
Eni, the Italian oil firm, is leading the exploration campaign and has a 65 per cent share of the licence, with Cairn on 15 per cent and Lukoil, the Russian group, owning 20 per cent.
The Edinburgh-based Cairn has reshaped its production portfolio this year by striking deals to exit the UK North Sea and take on assets in Egypt. It also continues to fight for $1.7 billion of compensation from the Indian government in a long-running tax dispute.
The London-listed company moved into Mexico in 2017 and has interests in a number of areas there. Prior to the drilling results, Sayulita, which lies in waters about 44 miles southeast of Mexico, was estimated to have about 160 million barrels in place. Cairn shares closed up 1.17 per cent at 129¼p.
