LONDON--Independent oil and gas exploration and development company Cairn Energy PLC (CNE.LN), said Thursday it has entered into a farm down agreement with ConocoPhillips ( COP) for three contiguous blocks located offshore Senegal, West Africa.

MAIN FACTS:

-Under the terms of the agreement, which is subject to Government of Senegal approval, ConocoPhillips will acquire a 25% working interest from Cairn in the three contiguous blocks - Rufisque, Sangomar and Sangomar Deep where a 2,050 kilometer square 3D seismic survey has been used to identify prospects.

-The exploration campaign is targeting a block wide potential of more than 1.5 billion barrels of yet to find resource with a proposed two well program with drilling expected to commence in first half of 2014 with the Cairn contracted Cajun Express rig.

-Cairn will retain operatorship and 40% interest in the blocks during the exploration phase. Petrosen, the Senegal National Oil Company, will retain a 10% interest in the exploration phase. In the event of a commercial success, ConocoPhillips would have the option to operate the future development of the resource.

-The detailed financial terms of the agreement are confidential; however, ConocoPhillips will pay Cairn a payment inclusive of a portion of back costs on the blocks, along with promoted terms of future exploration expenditure.

-Cairn Energy shares closed Wednesday at 269.0 pence, valuing the company at GBP1.64 billion.

-Write to Razak Musah Baba at razak.baba@wsj.com

Source: www.nasdaq.com