Simon Thomson, Chief Executive, Cairn Energy PLC said:
"Cairn delivered on its 2012 strategic objectives: cash was returned to shareholders re-gearing the Company to the drill bit; acquisitions created a balanced portfolio with growth potential; and the Group's frontier exploration position was expanded.
With a strong cash position and a disciplined approach to capital expenditure, we look forward to the start of our multi-well, multi-year operated exploration programme commencing in Q4 2013 targeting more than 3.5 billion boe of resource.
I believe the Company is well positioned to create significant value through our exploration led growth strategy in 2013 and 2014."
Atlantic Margin – Frontier exploration
- Planned multi-well frontier exploration drilling programme, subject to necessary approvals, over forthcoming 18 months targeting > 3.5 billion (bn) barrels of oil equivalent (boe) of mean un-risked gross prospective resource;
- Two to four operated exploration wells offshore Morocco (2013/2014)
- One or more operated exploration well(s) offshore Senegal (2013/2014)*
- Drilling decision for offshore Greenland in 2013 targeting an exploration well in 2014, subject to necessary approvals
- Farm-in as Operator (Cairn 65%) to the contiguous Sangomar, Sangomar Deep and Rufisque blocks offshore Senegal, subject to necessary regulatory approvals
UK and Norway – Mature basin exploration and appraisal
- Four non-operated scheduled exploration and appraisal wells – two of which are underway (2013)
- New interests in 10 licences acquired in bid rounds (2012/13)
Funding strength and flexibility
- Group net cash at 31 December 2012 of US$1.6bn
- ~10% residual shareholding in Cairn India Limited (CIL) valued at US$1.1bn at 31 December 2012
- Catcher and Kraken Field Development Plans (FDP) will be submitted H2 and H1 2013 respectively