FAR Limited said the first appraisal well to be drilled on the SNE field offshore Senegal has been spudded.
The SNE-2 well will be drilled in approximately 1,100 metres of water and drilled to a total vertical depth subsea of 2,770 metres before an evaluation program including logging, coring and flow testing is undertaken.
FAR Limited said drilling has started to appraise the SNE oil discovery offshore Senegal.
Three wells will be drilled back to back in a program estimated to be completed in the middle of next year.
The company said both the SNE-2 and SNE-3 appraisals will be logged, cored and flow tested.
Australian oil and gas explorer FAR has entered into a farm-in option agreement with a subsidiary of Trace Atlantic Oil for the Djiffere block offshore Senegal.
Cairn Energy has made reductions to its staff cutting 40% of its headcount in both full-time employees and contractors.
The company made the announcement in a pre-close update in which it said its 2015 focus would be on an appraisal and exploration programme in Senegal.
Cairn is currently still engaged in discussion with the Indian Tan department as it struggles to gain access to the value of its 10% share of Cairn Energy.
Cairn Energy has completed work on the SNE-1 well in Senegal after failing to hit hydrocarbons at a lower target.
The company and its joint venture partners had previously discovered oil in the upper clastic target.
However the deeper target of Karstified and fractured Lower Crestaceous shelf carbonates returned no hydrocarbons, Cairn Energy said.
Cairn Energy has made a second oil discovery during its Senegal exploration programme.
The Scottish oil firm announced last month it had made an initial oil find it its FAN-1 exploration well in the West African country.
The SNE-1 well is located in 1,100 metres water depth and is 100km offshore in the Sangomar block.
Scottish oil firm Cairn Energy has discovered oil and its FAN-1 exploration well in Senegal, the company has announced.
The well, which is 100 kilmoetres offshore in the Sangomar Deep block and was targeting multiple stacked deepwater fans.