Interim Management Statement

RNS Number : 9272G

Cairn Energy PLC

29 October 2008

 



 FOR IMMEDIATE RELEASE         

29 October 2008 

CAIRN ENERGY PLC ('Cairn')

Interim Management Statement

Cairn Energy PLC is today issuing its Interim Management Statement as required by the Disclosure Rules and Transparency Rules of the Financial Services Authority. 

Cairn India

• Development of the Mangala field, Rajasthan, on track with funding in place to deliver first oil in H2 2009

• Two custom built rigs deployed for development drilling in Rajasthan and ongoing exploration

• Four appraisal/exploration wells planned for Q4 2008 in Rajasthan and Bihar 

• Cairn India Q3 results released 29 October 2008

Capricorn

• 2D seismic programme completed over 2 low Arctic blocks in Greenland

• 2D seismic survey over sub-Arctic Greenland blocks ongoing

• Two frontier sub-Arctic blocks awarded offshore southern Greenland

• Exploration drilling programme for Tunisia deferred due to failure to secure a rig on acceptable terms

• Assets in Peru and Western Australia transferred to third parties

Group Production

The figures in the table below show group production for Q3 2008 (including 100% of Cairn India's production).

Production (boepd)	Ravva	CB-OS/2	Sangu	Total
Gross field	52,088	13,478	8,455	74,021
Working interest	11,720	5,391	3,171	20,282
Entitlement interest	5,023	4,312	2,536	11,871

The average realised price per barrel of oil equivalent for Q3 2008 is $70.06. 

Group Net Cash

Group net cash at 30th September 2008 was approximately US$ 994.3 million (including 100% of Cairn India's net cash balances; 667.7 US$ million).

In addition to the cash on the balance sheet, Cairn has a facility of $60million and Cairn India has a facility of US$ 850 million with a consortium of international banks. 

Cairn has funding in place and remains on track to deliver first oil from Mangala in H2 2009 and to focus resources on advancing progress on the future transformational growth potential in Greenland.

Enquiries to:

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

Cairn India has today released its 3rd Quarter results for 2008 to the Bombay Stock Exchange and National Stock Exchange of India. The announcement is available at www.cairn-energy.plc.uk or www.cairnindia.com

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 arms to the business:

• Cairn India limited ('Cairn India') is now an autonomous business listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 14 acreage blocks in India and Sri Lanka. Cairn currently retains a 65% interest in Cairn India.

• Capricorn Energy Limited ('Capricorn'), a subsidiary of Cairn is the exploration focused arm. Capricorn now has assets in Bangladesh, Nepal, Northern India, Greenland, Tunisia,  UK (West of Shetlands), Albania, and pending licence awards in Spain and Sicily.

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

• 'Cairn India' where referred to in the release means Cairn India Limited and/or its subsidiaries, as appropriate. 

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

• The Group holds material exploration and production positions in west India, east India and Bangladesh along with new exploration rights in India and Nepal. 

• Cairn has focused its activities on the geographic region of South Asia, which has already resulted in a significant number of oil and gas discoveries. In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn has now made more than 20 discoveries in Rajasthan block RJ-ON-90/1. 

• Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan. 

• Cairn Energy PLC (including Capricorn) will continue to be run from Edinburgh with operational offices in Dhaka, Chittagong and Kathmandu.

For further information on Cairn see www.cairn-energy.plc.uk   

 

END

 

 

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