Proposed part sale of s/hdg in Cairn India

RNS Number : 5298J

Cairn Energy PLC

30 June 2011

 



FOR IMMEDIATE RELEASE                                                                                                 30 June 2011

CAIRN ENERGY PLC ("Cairn")

Proposed part sale of shareholding in Cairn India Limited ("Cairn India")

to Vedanta Resources plc ("Vedanta" )

Cairn notes the statement made by the Government of India on the approval of the proposed part sale of Cairn's shareholding in Cairn India to Vedanta.

 
Cairn has not yet received formal confirmation of any conditions or of further consents attaching to the approval.

Cairn and Vedanta continue to work towards concluding this transaction.
 
A further announcement will be made in due course.

Enquiries to:

Cairn Energy PLC Sir Bill Gammell, Chief Executive Simon Thomson, Commercial and Legal Director 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

Ø Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange.

Ø Following the IPO of Cairn India in January 2007, there are two separate arms to the Cairn business:

§ Cairn India limited ("Cairn India") which is headquartered in Gurgaon on the outskirts of Delhi is listed on the Bombay Stock Exchange  and the National Stock Exchange of India.  It has interests in a total of 11 acreage blocks in India and Sri Lanka. Cairn currently retains a [52.2%] interest in Cairn India (on an un-diluted basis). Following completion of the Transaction Cairn will hold a [21.9]% interest in Cairn India (on an undiluted basis).

Ø Capricorn Oil Limited ("Capricorn"), a 100% subsidiary of Cairn, is focused on exploration. Capricorn has assets in Nepal, Greenland, Albania and Spain.

Ø Under the sale agreement, Cairn gave certain non-compete undertakings, covering the territories of India, Sri Lanka, Pakistan and Bhutan in consideration for a non-competefee payable on completion of the Transaction. Cairn and Vedanta have now agreed to remove the non-compete arrangements and the non-compete fee from the sale agreement.

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

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

Ø Cairn has previously focused its activities on the geographic region of South Asia, resulting 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.

Ø Cairn has commenced drilling operations on two wells offshore West Greenland.

§ The AT-7 well in the Atammik Block, approximately 160 kilometres offshore Nuuk, west Greenland and the LF-7 well in the Lady Franklin Block approximately 300 kilometres offshore Nuuk have both started operating.

§ The Leiv Eiriksson, a fifth generation semi submersible and the Ocean Rig Corcovado, a sixth generation drillship, are to carry out the drilling programme offshore Greenland this summer.

§ The AT-7 prospect in the Atammik Block and LF-7 prospect in the Lady Franklin Block are in water depths of 905 and 989 metres respectively.  

For further information on Cairn please go to:  www.cairnenergy.com

 

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