Cairn Energy has announced an increased exploration budget, bucking current trends in the sector, according to a company spokesperson.
The increased budget for this year will be used to drill more wells in Senegal where it made discoveries last year.
Following the dramatic fall in the price of crude, most energy companies are slashing their E&P budgets in an attempt to cut costs.
However, Cairn announced a $75 million increase to its 2015 exploration budget to $185 million. Of that amount, $135 million will go to its West African projects.
“We all recognize that (the Senegal) discoveries, in the longer term, are potentially transformational for Senegal as a country, as well as for Cairn,” said Chief Executive Simon Thomson in a statement.
The company said it planned to drill at least three more wells offshore Senegal this year.
“The key value driver in 2015 will be the $95 million to be spent on a 3-well follow-up campaign offshore Senegal to begin in 2015,” said analysts at Jefferies who rate Cairn a “buy”.
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