Cairn Sells interests in the Catcher and Kraken Fields

Cairn announced that it has entered into an agreement that will result in the sale of its interests in the UK Catcher and Kraken fields to Waldorf Production Limited (“Waldorf”) for a cash consideration of US$460 million plus additional contingent consideration dependent principally on oil prices from 2021 to the end of 2025. The consideration is subject to adjustments for working capital and other customary interim period adjustments from the economic effective date of 1 January 2020. 

Transaction Highlights

  • Cairn to sell its entire 20 per cent interest in the Catcher field and 29.5 per cent interest in the Kraken field
  • Firm consideration of US$460 million (to be adjusted for working capital and interim period adjustments from effective date of 1 January 2020)
  • Additional uncapped contingent consideration dependent on oil prices and production performance from 2021 to the end of 2025: generating ~US$75 million at US$60 Brent and ~US$125 million at US$65 Brent (based on Cairn expected production profiles)
  • Further strengthens Cairn’s balance sheet and provides flexibility to sustain and prolong the producing asset base
  • Completion currently expected in H2 2021

Information Source: Read Full Release ..–>

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