Cairn to announce Interim Management Statement
Cairn intends to announce its half year results for the six months to 30 June 2014 on Tuesday 19 August 2014. In advance of these results, Cairn is providing 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, Chief Executive, Cairn Energy PLC said:
“Cairn has reached a key milestone for the Kraken and Catcher fields in the North Sea.
BNP Paribas has agreed to fully underwrite a debt facility to part fund the development of the North Sea assets. The cash flow from these fields will underpin delivery of future exploration programmes with appropriate capital allocation within a balanced portfolio.
The current fully funded programme continues with the first of two planned exploration wells in Senegal while in India the Company is actively seeking resolution of the Indian tax matter.”
* Cairn has entered into an agreement with BNP Paribas who will fully underwrite a seven year debt facility of US$575m which, subject to final documentation, will be available to fund part of the Catcher and Kraken development projects and as letters of credit or bank guarantees required for Cairn’s operational activity.
* Group net cash at 31 March 2014 of US$1.2bn.
* By end 2017, Cairn expects to have spent approximately US$1bn on its development assets, funded by existing cash resources and debt.
* ~10% residual shareholding in Cairn India Limited (CIL) valued at ~US$1.1bn at 31 December 2013 which, while interactions are ongoing with the Indian Income Tax Department, Cairn is currently not able to sell.
* The first of two planned exploration wells offshore Senegal (Cairn 40% WI) began in April.
* One exploration well is planned to commence on the Cap Boujdour Contract Area (Cairn 20% WI) in Q4 2014 with Kosmos Energy (operator) and the Moroccan National Oil Company (ONHYM).
* Two non-operated North Sea exploration wells (Aragon (Cairn 32.5% WI) and West of Kraken (Cairn 25% WI)) are scheduled in 2014 with one further well (Tulla) scheduled for 2015 (Cairn 50% WI).
North Sea development
* The Catcher FDP has received board approvals from all the JV partners and DECC approval is expected shortly (Cairn 30% WI) with first oil targeted mid 2017.
* The Kraken development is progressing on schedule with first oil expected H2 2016/H1 2017 (Cairn 25% WI).
Source: CAIRN ENERGY PLC