Cairn Announce Half-yearly Results 2019

Oil and gas sales revenue US$257m, average realised price US$68/boe; average production cost US$17/boe

H1 2019 Summary
Combined net oil and gas production ahead of 2019 guidance at ~23,700 boepd (+15% v previous six months)

Net cash inflow from oil and gas production US$177m

Capital expenditure: cash outflow US$135m (US$14m of tax refund receivable)

Group cash at 30 June 2019 US$58m; US$60m drawn under US$575m RBL facility

Simon Thomson, Chief Executive, Cairn Energy PLC said:

“As a full cycle E&P business Cairn has seen good progress in the first half of 2019 with the opportunity to develop and deliver multiple catalysts for future growth.

Production performance from our North Sea assets is ahead of expectations, delivering significant cash flow to reinvest in the portfolio. The SNE development in Senegal, where FID is expected in H2, remains on schedule for first oil in 2022.

Our drilling programme is about to commence offshore Mexico, where Cairn has built a material footprint in one of the world’s most prolific basins. Recent portfolio acreage additions provide line of sight to future high potential exploration prospects.”

2019 Outlook
Full year oil production guidance: upgraded to 21,000-23,000 bopd from 19,000-22,000 bopd; average production cost reduced from US$20/boe to ~US$18/boe

Full year forecast capital expenditure US$295m; Exploration & Appraisal US$165m (net of tax refund), Development & Production US$130m

Portfolio Management: agreed to farm down 15% WI in Chimera to DNO, agreement with ENI to swap 15%WI in Block 10 Mexico and agreed sale of 10% WI in Nova development to ONE-Dyas

Senegal: SNE field development (Cairn 40% WI) major contracts awarded. JV progressing towards FID in H2 2019, targeting first oil in 2022

Mexico: two operated wells Block 9 (Cairn 50% WI) to be drilled in Q3 and Q4: two non-operated wells on Block 7 (Cairn 35% WI) and Block 10 (Cairn 15% WI) to commence in H2 2019

UK and Norway: Drilling about to commence on Chimera (Cairn 45% WI) exploration well

Source / More : Cairn Energy PLC

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