Cairn Energy PLC’s Preliminary Results Announcement

Cairn Energy PLC’s Preliminary Results Announcement

Group net cash at 31 December 2014 of US$869m

Seven year Reserve Based Lending bank facility of up to US$575m remains undrawn

Cairn is currently unable to access the value of its 10% residual shareholding in Cairn India Limited (CIL) valued at US$703m at 31 December 2014

Completion of a farm out agreement to Dyas UK Limited for the sale of 10% interest in the Catcher development in the UK North Sea

A total of 56.1 mmboe booked as 2P reserves at 31 December 2014 and 171.6 mmboe booked as 2C Contingent Resources on a net working interest basis

Exploration
Atlantic Margin – Senegal
FAN-1 discovered high quality, light oil in multiple stacked deepwater fans, SNE-1 discovered high quality oil in the upper clastic target of the Shelf Edge prospect; Senegal evaluation plan to be submitted by Joint Venture (JV), Cairn Operator 40% Working Interest (WI), Q2 2015

Preliminary estimates of the gross Contingent Resource for SNE-1: P50, 330 mmbbls recoverable. Initial gross STOIIP estimates for the FAN-1 well: P50, 950 mmbbls. Resource estimates confirmed by ERC Equipoise Ltd audit

Based on early evaluation, a programme of three firm and three optional exploration and appraisal wells is envisaged to begin in 2015

Capital Markets Day on Senegal on 11 May 2015

Atlantic Margin – Western Sahara
Exploration well in Cap Boujdour contract area completed in March 2015 (Kosmos Operator, Cairn 20% WI). Well encountered hydrocarbons but the discovery was non-commercial and the well has been plugged and abandoned

North West Europe
Catcher and Kraken developments in the UK North Sea on track for first oil from 2017; targeted peak net production to Cairn of ~22,500 boepd

Catcher
Field Development Plan approved Q2 2014 now in execution phase
Development drilling scheduled to commence in the middle of 2015
Construction of the FPSO hull started in Q1 2015

Kraken
Development drilling scheduled to commence in the middle of 2015
FPSO construction continues in Singapore and fabrication of main process modules has started
Programme of non-operated wells in North Sea:

Three wells completed in 2014, Ensis and Atlas in Norway and Aragon in the UK – all three wells were plugged and abandoned

West of Kraken, UK North Sea (EnQuest Operator, Cairn 25% WI) operations are close to completion

Crossbill, Norwegian North Sea (Wintershall Operator, Cairn 20% WI), operations to commence in Q2 2015

Additional non-operated wells for 2015 remain subject to final investment decision within the different partnerships
UK 28th Licensing Round awards: Cairn was awarded four licences in Q4 2014
Norwegian 2014 Licensing Round: Cairn was awarded five licences in Q1 2015
Process to pre-qualify as Operator in Norway under way
Pursuing recent entry into Barents Sea with possible applications in 23rd Licence Round in late 2015

Simon Thomson, Chief Executive, Cairn Energy PLC said:
“Cairn enters 2015 in a strong position with further drilling planned in Senegal to evaluate the scale of this world class asset. We are preparing, along with our joint venture partners, for a multi-well exploration and appraisal programme that has the ability to add substantial value for the company and all stakeholders.

In the last twelve months, we have actively managed the portfolio and streamlined the business to provide the Group with continued financial flexibility to deliver our active exploration, appraisal and development programmes.”

Source: Cairn Energy PLC

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