Cap Energy an independent upstream oil and gas company focused on the exploration, production, and development of conventional hydrocarbons in sub-Saharan Africa's portfolio in Guinea-Bissau and Senegal has been put out of risk by Cairn's exploration success in Senegal.

This marks an exciting time, in particular the forthcoming release of Cap's 3D seismic results on its Guinea-Bissau deepwater Block 5B, as well as interesting read-across from Cairn's campaign on its Senegal shelf-edge blocks which bear similarities with Cap's acreage. Cap remains funded through shareholder loans and strategic equity investors; however, due to a lack of liquidity the company intends to unlisted from ISDX in early October 2015. Farm-outs and an AIM listing are likely to be required before drilling, although first drill commitments are not until 2018.

In March, Cap upgraded prospective resource estimates based on reassessment of 2D seismic data. Block 5B is now estimated to contain P50 5.9bnbbls, with several prospects in the 400-500mmbbls range, including two prospects bearing strong analogies to Cairn's FAN-1 and SNE-1 discoveries. The Energy company intends to re-run a Virtual Drilling analysis based on new 3D data to delineate existing leads and prospects and firm up drill targets for 2017-18.

However full interpretation of Cap's 2014 2D survey has led to the identification of 11 structural prospects and leads totaling 587mmbbls of gross Pmean prospective resources, including the 220mmbbls (Pmean) Antelope prospect and four other prospects with prospective resources of 45-93mmbbls (Pmean).

Investors also need to watch Cairn's E&A programme for 2015-16, starting with the 3D seismic survey on its Rufisque Offshore block directly adjacent to Cap's Djiffere this month.