Cairn Energy makes new oil discovery in Mexico's Sureste Basin

Exploration and development firm Cairn Energy has made a new oil discovery on the Saasken prospect, located in the Sureste Basin, offshore Mexico.

Cairn, which has a 15% working interest in the asset via its wholly-owned subsidiary Capricorn Energy, on Monday said preliminary estimates indicate the new discovery may contain between 200m - 300m barrels of oil in place.

The Saasken-1 NFW well, was the sixth consecutive successful well drilled in the Sureste Basin by Eni, which operates the drilling programme.

Data acquired by the group indicated production capacity of more than 10,000 barrels of oil per day.

Cairn also noted that operations were ongoing at its self-operated Bitol-1 well in Block 9.

As of 0845 GMT, Cairn Energy shares were up 5.43% at 188.19p.