Cairn announce Interim Management Statement
Cairn Energy PLC is today issuing its Interim Management Statement, in accordance with the reporting requirements of the EU Transparency Directive, which provides an update on its recent operations and guidance in respect of the Group’s trading performance. This information is unaudited and subject to further review.
Simon Thomson CEO Cairn Energy PLC said;
“Cairn remains focused on maximising value for shareholders from disciplined capital allocation across a balanced asset base.
Operations are now underway on our second well in Senegal after oil was discovered in the basin opening FAN-1 well. We have a large acreage position and are in the process of evaluating the initial well information and determining potential follow up activity which we are currently targeting for 2015.
The Company continues its efforts to seek resolution of the tax issue in India.”
Corporate and Finance
Group cash at 30 September 2014 of US$953 million (m)
US$575m Reserve Based Lending facility remains undrawn
The company is fully funded through to free cash flow in 2017
Catcher farm-down reduces Group capital expenditure by ~US$380m and will create significant financial flexibility
While interactions are ongoing with the Indian Income Tax Department, Cairn is currently unable to access the value in its ~10% residual shareholding in Cairn India Limited (CIL) valued at US$927m at 30 September 2014. Cairn is continuing to take all necessary steps to protect shareholders’ interests
Implementation of the Group reorganisation started following staff consultation process
The first of two planned exploration wells offshore Senegal (FAN-1) discovered oil (Cairn Operator, 40% WI)
Drilling underway on second well offshore Senegal, SNE-1 (Cairn Operator, 40% WI)
One exploration well planned to commence on the Cap Boujdour contract area December 2014 (Cairn non operator, 20% WI)
Two firm wells scheduled for drilling in North Sea; a number of further contingent wells in North West Europe envisaged for 2015 remain subject to a final investment decision by partners
The Catcher and Kraken developments in the UK North Sea are progressing with first oil targeted for 2016/2017
Source: Cairn Energy PLC