Dyas to swap stake in Caprico

RNS Number : 2639D

Cairn Energy PLC

30 November 2009

 



EMBARGOED FOR RELEASE AT 0700

30 November 2009

CAIRN ENERGY PLC ("Cairn")

Dyas to swap stake in Capricorn for shares in Cairn and interests in Mediterranean 

Cairn is pleased to announce that it has entered into binding Head of Terms with Dyas BV ("Dyas") to acquire the 9.99% interest Dyas owns in Cairn's exploration focused subsidiary, Capricorn. The acquisition comprises Dyas' entire holding in the Capricorn Group, including all assets and cash balances. On completion of the transaction, Capricorn will be a wholly owned subsidiary of Cairn.

The consideration for this acquisition is US $95 million to be satisfied by an issue of 1,800,000 shares in Cairn with the balance payable in cash. Cairn will also assign 15% of its interests in Tunisia and Albania held by Capricorn to Dyas, subject to relevant Government approvals. On completion of this transaction, Dyas will hold a 15% interest in the Louza Permit and a 7.5% interest in the Nabeul Permit (both in Tunisia) and a 15% interest in Block Joni-5 in Albania.

Dyas acquired its interest in Capricorn in September 2007 on the same day as Capricorn acquired the rights to the blocks in Tunisia and Albania. At that time, Capricorn also had assets in Bangladesh and Papua New Guinea, together with the cash to exploit these. Since then, Capricorn has also acquired licence interests in Greenland and conducted a pre-exploration programme of seismic and lead development. In October 2009, Cairn farmed down a minority interest in its Greenland acreage to Petronas.

The Company has applied for admission of the shares to be issued to Dyas to the Official List of the UK Listing Authority (the "Official List") and to trading on the London Stock Exchange's main market for listed securities ("Main Market"), together (the "Admission"). It is expected that Admission will take place and that trading will commence today. 

Sir Bill Gammell, Chief Executive said:

"Dyas were early strategic investors in Capricorn at a time when it was envisaged that Capricorn would potentially demerge from the Cairn Group. Given the materiality of our exploration position in Greenland to the Group as a whole, there is no longer an intention to demerge Capricorn.  Dyas have therefore agreed to exchange their holding in Capricorn for a holding in Cairn.

We are delighted to continue our relationship with Dyas and they will be a key partner in our Mediterranean exploration programme." 

 Enquiries to:

Cairn Energy PLC Sir Bill Gammell, Chief Executive Dr Mike Watts, Deputy Chief Executive Jann Brown, Finance Director David Nisbet, Corporate Affairs	Tel: [phone]
Brunswick Group LLP Patrick Handley David Litterick	Tel: [phone]

NOTES TO EDITORS:

• Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange. Following the IPO of Cairn India in January 2007, there are two separate parts of the business:

• Capricorn Oil Limited ("Capricorn"), a subsidiary of Cairn is focused on exploration. Capricorn has assets in Bangladesh, Nepal, Northern India, Greenland, Tunisia, Albania, and pending licence awards in Spain.

• "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India and Capricorn), as appropriate. 

•  "Capricorn" where referred to in this release means Capricorn Oil Limited and/or its subsidiaries as appropriate.

• Dyas is a wholly owned subsidiary of the largest privately owned conglomerate in The Netherlands, SHV Holdings N.V. and an active partner, as non operator, in oil and gas exploration, development and production joint ventures. Net UK and NL developed reserves are some 60 million boe and daily production is 29 thousand boe/d. Dyas is aiming to grow these production levels, by participating in auctions, focused strategic alliances and diversifying its reserves base outside the North Sea arena.

• Cairn's interest in Albania consists of 100% of the Joni-5 Block Production Sharing Contract.

• Cairn's interest in Tunisia consists of 100% of the Louza Exploration Permit, and 50% of the Nabeul Exploration Licence

• Cairn through its subsidiary Capricorn operates six blocks in Greenland. It also has non operated interests in two other blocks.

• Cairn Energy PLC (including Capricorn) is run from Edinburgh with operational offices in Dhaka, Chittagong, Tunis and Kathmandu.

For further information on Cairn see www.cairnenergy.com

 

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