As part of its deal with the government of Senegal, Cairn plans a 3D seismic data acquisition program that will start during the third quarter of 2015. “Cairn is well placed to take advantage of this exciting opportunity as we build on the success of last year’s discoveries”.

This program included the initial firm three well drilling program and a 3D seismic survey.

Later this year it aims to launch a multi-well exploration and appraisal programme.

FAN-1 was drilled in 2014 in 1427m water depth, 100km offshore in the Sangomar Deep block.

Cairn holds a 40-per cent stake in three blocks offshore Senegal: Sangomar Deep, Sangomar Offshore and Rusifique along with ConocoPhillips (35 per cent), Far Ltd (15 per cent) and the Senegal National Oil Company holds a 10 per cent stake in the development phase.

The group also said it noted proposals recently announced by commodities giant Vedanta to merge with Cairn India.

The explorer’s residual shareholding in Cairn India was valued at $1 billion on 31 December 2013, just before the restriction was imposed.

Cairn has contested the bill and plans to seek restitution for losses resulting from the falling value of its stake in CIL.

The FTSE250 listed company said it is currently forecasting exploration and appraisal expenditure of $170 million, predominantly for Senegal drilling activity in the second half of 2015 and the first half of next year.

The FTSE 250-listed oil producer reported a pretax loss of USD234.7 million in the first half of 2015, widening from a USD62.1 million loss a year earlier after the company booked an USD177.1 million impairment against its remaining investment in Cairn India Ltd. The company does not generate any revenue.

‘The great attraction in drilling Bellatrix is that it will allow us to gain additional information on the extent of the SNE field while also testing a high quality exploration target of 168mmbbls* in its own right.

However, at the end of the first half, Cairn reported a cash balance of $725m.

Cairn shares were down 2.3% to 150.90 pence on Tuesday morning.