Statement re Kraken development

RNS Number : 6968P

Cairn Energy PLC

22 February 2016

 

For Immediate Release                                                                                               22 February 2016

CAIRN ENERGY PLC ("Cairn")

Acquisition of additional interest in the Kraken development

Cairn is pleased to announce the acquisition by its wholly owned subsidiary, Nautical Petroleum Limited, of an additional 4.5% interest in the Kraken development in the UK North Sea from First Oil plc bringing Cairn's total working interest to 29.5%.

Cairn and EnQuest PLC, the operator of the Kraken development, are both taking up First Oil's interests pro-rata to their holdings prior to the transaction.  EnQuest's interests will increase to 70.5% following the transaction.

There is a nominal cash consideration payable in respect of the transaction however Cairn will waive its right to reclaim approximately US$3m of cash calls paid on behalf of First Oil in January and February 2016.

Cairn will acquire the reserves and resources associated with the additional interest and Cairn is not reimbursing First Oil in respect of costs incurred by First Oil to date.

Enquiries to:

Analysts / Investors

David Nisbet, Corporate Affairs                                                                              Tel: [phone]

Media

Patrick Handley, David Litterick

Brunswick Group LLP                                                                                           Tel: [phone]

NOTES TO EDITORS

Cairn Energy PLC ("Cairn") is one of Europe's leading independent oil and gas exploration and development companies and is listed on the London Stock Exchange. Cairn has discovered and developed oil and gas reserves in a variety of locations around the world.

Cairn's business operations are now focused on frontier exploration acreage in North West Europe, North West Africa, North Atlantic and Mediterranean, underpinned by interests in development assets in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway and Senegal. 

Cairn is paying £0.30 for the increased stake. As per Cairn's half-yearly report issued on 18 August 2015, the equivalent value of the gross assets being transferred are $56 million as at 30 June 2015. There are no profits attributable to the assets the subject of the transaction.

Cairn and Corporate Responsibility

Ø Cairn is a signatory to the UN Global Compact and our core values of respect, responsibility, relationships and our commitments towards people, the environment and society are enshrined in our Business Principles, which are available on the Cairn website at http://www.cairnenergy.com/index.asp?pageid=282

Ø Cairn became a participating company in the Extractive Industry Transparency Initiative (EITI) in September 2013. The EITI is a coalition of governments, companies and civil society, who have adopted a multi-stakeholder approach to applying the EITI global standard promoting transparency of payments in the oil, gas and mining sectors http://eiti.org/

For further information on Cairn please see: www.cairnenergy.com

 

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