TIDMCNE
RNS Number : 3179Z
Cairn Energy PLC
17 May 2019
FOR IMMEDIATE RELEASE 17 May 2019
CAIRN ENERGY PLC
Annual General Meeting
("Cairn" or "the Company")
Simon Thomson, Chief Executive of Cairn Energy PLC will make the
following statement at the Company's Annual General Meeting for
shareholders in Edinburgh at noon, May 17, 2019. The Company will
announce half-year results on September 10, 2019.
In the last 12 months, Cairn has returned to being a full cycle
exploration and production company with production, home grown
developments and exposure to material upside potential from an
active programme of exploration drilling.
Last year was the first full year of production from our two
production assets in the UK North Sea. Between them, Catcher and
Kraken generated around 17,500 barrels of oil per day (bopd) net to
Cairn and around US$395million in oil and gas sales revenue. Group
production for 2019 remains within guidance of 19,000-22,000 bopd
for the first four months and an update on production performance
will be provided later in the year.
We are particularly pleased with the performance of Catcher,
which is operating ahead of our expectations and where operating
efficiency is excellent. While we have reduced our reserve
estimates for Kraken, we know what needs to be done to improve the
performance of the field and we are working with the operator on
several initiatives designed to increase the productivity of the
assets on a sustainable basis.
We continue to progress our two home grown development projects:
SNE in Senegal and Nova in Norway. Both projects are firmly on
schedule with first oil from Nova targeted in 2021 and from SNE in
2022.These two development projects are an important part of our
strategy in sustaining and adding to our current cash flows over
the medium and long term.
We also continue to replenish our exploration portfolio with
assets that meet our stringent investment criteria. In 2018 this
included adding a number of value-enhancing opportunities in new
geographies including Suriname, Mauritania, Mexico and Côte
d'Ivoire and working towards a material, exploration drilling
programme in 2019 and 2020.
Since our last reporting date, we have consolidated our position
in Latin America and entered into a farm-in agreement with Equinor
for a 35.1% non-operated interest in four exploration blocks
offshore the Nicaragua Pacific coast ahead of a potential
exploration drilling campaign in 2020. The farm-in enables Cairn to
access high impact resource potential in a frontier location
containing a range of exploration play types.
We have a very busy exploration drilling programme in the second
half of 2019 targeting more than 800 million barrels of gross
resource and includes six wells - three in the UK and Norway, and
three in Mexico. Importantly, Cairn will operate five of these
wells.
The first well in our Mexico programme is expected to be drilled
on Block 9 and will commence in the third quarter of this year. A
second well will follow on Block 9 in the fourth quarter and a
non-operated well in Block 7. In Block 9, the exploration plan has
been approved and rig contracts are in place. As a reminder, these
blocks are close to existing discoveries in what remains a highly
prospective yet underexplored region.
In Norway and the UK, we are looking forward to the second well
in this year's programme targeting the Lynghaug prospect expected
to spud later in Q2. This will be the first to be operated by Cairn
in Norway.
The third well in this year's programme is Godalen, our second
operated well in Norway followed by Chimera in the UK North Sea,
our second operated well in the UK.
The company is fully funded for all this activity, which
provides significant catalysts for future growth. We have cash on
the balance sheet, cashflow from our production and access to
material undrawn debt capacity under our bank facilities.
With regard to the Indian arbitration, there is no change in our
outlook; we await the final determination from the arbitration
panel and we continue to have a high level of confidence in the
merits of our case.
Cairn's portfolio today offers production, an active development
pipeline and a multi-year exploration drilling programme, all
underpinned by a strong balance sheet and a continued focus on
capital discipline.
We look forward to continued delivery of our strategy to create,
add and realise value for shareholders.
Enquiries to:
Analysts / Investors
David Nisbet, Corporate Affairs Tel: 0131 475 3000
Media
Linda Bain, Christian Goodbody Tel: 0131 475 3000
Cairn Energy PLC
Patrick Handley, David Litterick Tel: 0207 404 5959
Brunswick Group LLP
About Cairn Energy PLC
Cairn is one of Europe's leading independent oil and gas
exploration and development companies and has been listed on the
London Stock Exchange for 30 years. Cairn has explored, discovered,
developed and produced oil and gas in a variety of locations
throughout the world as an operator and partner in all stages of
the oil and gas lifecycle.
Cairn's exploration activities have a geographical focus in
North West Europe, West Africa and Latin America, underpinned by
interests in production and development assets in the North Sea.
Cairn has its headquarters in Edinburgh, Scotland supported by
operational offices in London, Norway, Senegal and Mexico.
For further information on Cairn please see:
www.cairnenergy.com
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END
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