Statement re Cairn India
Cairn Energy PLC
30 July 2007
The attached release was issued today by Cairn India to the Bombay Stock
Exchange and the National Stock Exchange of India.
In accordance with its Indian reporting obligations, Cairn India has today
issued its Q207 financial results. This financial information is reported in
Indian rupees and is prepared under Indian GAAP.
Cairn Energy PLC has a 69% holding in Cairn India. Cairn Energy PLC will next
release group financial information to the UK market in its 2007 interim results
announcement on 11 September 2007. These consolidated results will be reported
in US$ under IFRS and will include the group's interest in Cairn India.
Key differences between the financials prepared under Indian GAAP to those under
IFRS are summarised in the table below:
IGAAP IFRS
Accounting
policy
Exploration Unsuccessful and other Unsuccessful costs are written
write off exploration costs (eg seismic) off; other exploration costs are
(income are expensed as incurred capitalised pending
statement) determination
Depletion & Based on working interest Based on entitlement interest
Decommissioning production and reserves production and reserves
Foreign Exchange gains and losses No exchange gains or losses
exchange recognised on translation of recognised on US$ transactions/
(income US$ transactions/balances into balances where US$ is also the
statement INR reporting currency functional currency
recognition)
Disclosure
Operator fees Included in income from Included within other operating
operations income
Interest income Included in other income Included in finance income
Group Production
The figures in the table below show group production for H1 2007 (including 100%
of Cairn India's production).
Production (boepd) Ravva CB/OS-2 Sangu Total
Gross field 60,879 15,238 16,057 92,174
Working interest 13,698 6,095 12,043 31,836
Entitlement interest 7,204 5,654 9,628 22,486
Group production during H1 2007 was 68% gas: 32% oil and condensate. This high
gas weighting, combined with the contractual caps on the gas price received,
means that the average price per boe for the H1 2007 is approximately $34.
On commencement of oil production from Rajasthan, the majority of Group
production will be oil (currently estimated to be approximately 90%). As a
direct consequence of this, the Group will become much more highly geared to
prevailing oil prices.
Group Net Cash
Group net cash at 30 June 2007 was approximately $850m (including 100% of Cairn
India's net cash balances; $526m).
Group Accounting
Cairn Energy PLC's consolidated accounts include the results of its subsidiary
undertakings (including Cairn India) to the balance sheet date. The 31% interest
in Cairn India held by other shareholders is reflected as a minority interest
adjustment.
For Immediate Release 30 July 2007
Cairn India Limited (Consolidated) Second Quarter Results 2007
The following commentary is provided in respect of the unaudited financial
results and operational achievements of Cairn India Limited and its subsidiary
companies (referred to as 'Cairn India') during the second quarter of 2007.
OPERATIONAL
• Cairn India/ONGC agreement at Operating Committee on Rajasthan midstream
solution - awaiting Government of India (GoI) approval
• Rajasthan Northern Appraisal Area extension awarded - seismic infill
programme completed and further drilling underway
• Field Development Plan (FDP) for Bhagyam approved by Operating Committee
- under review by Management Committee, awaiting approval
• Ravva infill drilling campaign ongoing - four development wells and one
exploration well completed
• Cambay Basin (CB/OS-2) drilling programme to commence in H2 2007 - rig
contracted
• Gross operated production for Q2 2007 77,392 barrels of oil equivalent
per day (boepd) (working interest 19,775 boepd)
FINANCIAL
The gross production of the operating units for Q2 2007 was 77,392 boepd, a 3%
increase over Q1 2007 (74,830 boepd). The working interest production is 19,775
boepd in comparison to 19,811 boepd in the first quarter of 2007.
'Cash flow from operations', worked out as profit after tax prior to non-cash
expenses (non-cash employee cost, depreciation, depletion, amortisation and
deferred tax) and exploration cost was Rs. 2,234 million (US$ 54.1 million) for
the quarter as compared to Rs.1,801 Million (US$ 40.8 million) in Q1 2007. The
increased cash flow was due to higher revenues and operating efficiencies.
Cash (net of borrowings) available as at 30th June 2007 was Rs. 21,423 million
(US$526 million).
The consolidated revenue of Cairn India Limited and its subsidiaries for the
quarter ended 30th June 2007 was Rs. 2,433 million (US$ 59.0 million) a 3%
increase over Q1 2007 (Rs. 2,364 million, US $50.87 million). The average oil
price realisation in Q2 2007 was higher at US$ 71.11/bbl as compared to Q1 2007
realisation of US$ 61.04/bbl. The gas price realisation in Q2 2007 was $ 4.35/
mscf (Q1 2007 - $ 4.07/mscf). Average price realisation per boe was US$ 50.45 in
Q2 as compared to US$ 42.25 in Q1.
The profit before tax and foreign exchange loss was Rs. 1,093 million (US$ 26.5
million), a 32% increase over Q1 2007 (Rs. 831 million, US$ 18.8 million).
The strengthening of the Indian Rupee against USD resulted in the company
recognising an accounting loss due to foreign exchange fluctuation of Rs. 1,405
million (US$ 34.5 million). This arises on account of the deposits held in US
Dollar by the foreign subsidiaries, which are intended to be used for capital
imports. In this current phase of project implementation, we would ordinarily
hold US Dollars to match our projected dollar outflows for capital expenditure.
Tax (including current tax and deferred tax) is calculated at entity level and
not on a consolidated basis; losses arising within one jurisdiction are not
available for offset against profits arising in another. In the period under
review, the foreign currency fluctuation loss arises on USD cash deposits held
mainly by one entity and, for tax computation purposes, is not available for
setoff against any operating profits.
The consolidated net loss for the quarter ended 30th June 2007 was Rs. 714
million (US$ 17.3 million) as compared to profit of Rs. 376 million (US$ 8.5
million) in Q1 2007.
• Amounts shown in US$ are converted based on an average exchange rate for
the second quarter of 41.26 and closing exchange rate as at 30th June 2007
of 40.73 (average rate for Q1 2007 44.14 and average rate for H1 of 2007
42.70).
Rahul Dhir Chief Executive Cairn India said:
'Discussions on the midstream solution continue to progress well. We are
confident that the Government of India will support the proposal for Cairn India
(as operator of the field) to build a pipeline to transport crude oil from
Rajasthan.
Our target for first oil remains 2009 and we continue to place orders for long
lead items for the Mangala processing facilities.'
OPERATIONAL REVIEW
Gross operated production in India for the second quarter of 2007 was 77,392
boepd (19,775 working interest boepd).
RAJASTHAN BASIN - North West India
RJ-ON-90/1
Rajasthan Midstream
Cairn India and ONGC have agreed at the Operating Committee to a solution for
the midstream. The proposal which is now awaiting approval by the GoI is to
include within the FDP a pipeline to transport the Rajasthan crude from Mangala
to a coastal location in Gujarat. The proposed routing of the pipeline will
allow access to the existing pipeline infrastructure and refinery network, with
a final coastal delivery point that also affords access to the majority of India
's refining capacity. It is proposed that the pipeline will fall within the
definition of the field development activities and will accordingly be funded by
the Joint Venture partners Cairn India and ONGC in proportion to their
participating interest (70% Cairn India; 30% ONGC). If the pipeline is included
in the FDP and approved by the GoI, the costs would be recoverable under the
PSC. The conceptual engineering and route identification for the pipeline are at
an advanced stage.
Development Area (Cairn India 70%, Operator; ONGC 30%)
The upstream project in Rajasthan is progressing well. The first phase of
development drilling on Saraswati and Raageshwari has been completed
successfully. Development drilling on Mangala is scheduled to commence in 2008.
A 120 km2 3D seismic survey was completed over the Mangala field and processing
of the data has started. An addendum to the Mangala FDP is currently under
preparation for submission to the GoI.
All the permits and permissions required to begin major construction work have
been granted. Civil construction work is ongoing to meet the planned first oil
production from Mangala in 2009.
The FDP for Bhagyam, the second largest field in Block RJ-ON-90/1, was approved
by the Operating Committee in May 2007 and has subsequently been submitted to
the Management Committee for approval.
The current 2P reserves base case for Bhagyam envisages a plateau production
rate of 40,000 bopd. The Bhagyam and Shakti fields are contained within a second
development area of 430 km2.
The Saraswati-Crest-1 exploration well, located approximately 0.8 km west of
Sarasawati-3, was drilled in April 2007 and encountered two hydrocarbon bearing
formations. Approximately 7 metres (m) of net pay was encountered in the
Dharvi-Dungar formation and approximately 4.5 m of net pay was encountered in
the Lower Barmer Hill.
Enhanced Oil Recovery (EOR)
Work is ongoing to confirm the optimal EOR techniques to implement in the
Rajasthan block, with the aim of increasing ultimate oil recovery and extending
the production plateau periods for each field. A first phase of third party
laboratory studies of the techniques for chemical flooding (polymer, alkaline,
surfactant, or combinations of these) has been completed for Mangala.
Further laboratory studies on Mangala will now take place and simulation work is
ongoing. A pilot project to be implemented in 2009-10 is currently being
designed to demonstrate field-scale applicability of these techniques. Additonal
laboratory work continues for Bhagyam, to be followed by work on Aishwariya.
Northern Appraisal Area (Cairn India 100%)
The Ministry of Oil and Natural Gas (MoPNG), has awarded a six month extension
to the Exploration Phase of the Northern Appraisal Area (NAA) of Rajasthan
licence RJ-ON-90/1 from 8 May 2007.
Appraisal drilling on the discoveries made in 2006 (Kaameshwari West-2 and
Kaameshwari West-3) has begun. These discoveries have opened up a new play in
the Barmer Hill/Lower Dharvi Dungar sands on the western margin of the basin.
While reservoir quality is variable, an appraisal programme is underway to
further delineate these discoveries and explore the full potential of the NAA.
The area is covered by an exploration 3D seismic grid of 530 km2 acquired in
2006. The Kaameshwari 220 km2 appraisal 3D seismic programme started in July
2007. A further 88 km 2D seismic grid has just recently been completed to the
east of Barmer.
RJ-0NN-2003/1 (Cairn India 30%, ENI Operator)
In early January 2007, the Operator commenced acquisition of a 3D seismic survey
on this Rajasthan block, which was awarded in the New Exploration Licensing
Policy (NELP) V round. The 622 km2 3D programme has been completed and is
currently being processed by the Operator.
CAMBAY BASIN - Western India
CB/OS-2: Lakshmi and Gauri Gas Fields (Cairn India 40%, Operator)
Average gross production from the Lakshmi and Gauri fields for Q2 2007 was
13,498 boepd (comprising average oil and condensate production of 4,261 bopd and
average gas production of 55 mmscfd).
A drilling rig, the 'Offshore Courageous' has been contracted from Scorpion
Offshore for the further development of the field, with a planned offshore four
well infill development drilling programme scheduled to commence in H2 2007.
An upgrade to the oil handling facilities is underway and is scheduled for
completion in late 2007/early 2008.
The onshore CB-X tie in project was completed and delivered first gas in Q2
2007.
CB-ONN-2001/1 (Cairn India 30%, ONGC Operator)
A final commitment well on this block was drilled and abandoned in April 2007.
CB-ONN-2002/1 (Cairn India 30%, ONGC Operator)
Three wells are scheduled to be drilled on this block during H2 2007 or early
2008.
GS-OSN-2003/1 (Cairn India 49%, ONGC Operator)
The Operator has acquired a 3D marine seismic programme of 510 km2 on this
block.
KRISHNA-GODAVARI (KG) BASIN - Eastern India
RAVVA (Cairn India 22.5%, Operator)
Average gross production from the Ravva field for Q2 2007 was 63,894 boepd
(comprising average oil production of 51,577 bopd and average gas production of
74 mmscfd).
An extensive offshore infill development and exploration drilling programme on
Ravva commenced in October 2006 and is ongoing. To date, production has
commenced from three new infill wells and one successful appraisal well. In
addition, two water injection wells have also been drilled and put into service
to enhance the reservoir water-flood scheme. The Ravva field has been on plateau
for a number of years and the current drilling programme is aimed at continuing
the strong production performance at Ravva.
The rig is currently operating on an exploration well, RX-8, on the MM301
prospect. A further three work over wells are planned with the rig to enhance
production capacity.
KG-DWN-98/2 (Cairn India 10%, ONGC Operator)
The KT-1 Cretaceous exploration well spudded in June and drilling is ongoing.
KG-ONN-2003/1 (Cairn India 49%, Operator *)
Plans are underway to commence a seismic acquisition programme of 2D and 3D data
on this block in late 2007/early 2008.
PR-OSN-2004/1 (Cairn India Limited 35%, Operator)
This block was awarded in the NELPVI licensing round and covers an area of 9,400
km2. A 2D seismic programme is being planned for early 2008.
KK-DWN-2004/1 (Cairn India Limited 40%, ONGC Operator)
This block was awarded in the NELPVI licensing round and covers an area of
12,324km2. A 2D seismic programme is planned by the Operator in early 2008.
NORTHERN INDIA - Ganga Basin
GV-ONN-2002/1 (Cairn India 50%, Operator)
An aeromagnetic survey was completed on this block in April 2007 and a 500
kilometre 2D seismic acquisition programme is ongoing.
GV-ONN-97/1 (Cairn India 15%, ONGC Operator)
A final commitment well on this block is expected to be drilled in late 2007/
early 2008.
GV-ONN-2003/1 (Cairn India 24%, Operator *)
Subject to receipt of the requisite approvals, a 2D seismic acquisition
programme is scheduled to commence in late 2007/early 2008.
VN-ONN-2003/1 (Cairn India 49%, Operator*)
Seismic reprocessing is underway and planning will commence later in 2007 for a
2D seismic acquisition programme which is expected to commence in 2008.
* The PSC provides that ONGC is the proposed operator for the development and
production of these blocks.
Corporate Appointments
Cairn India has made the following senior appointments effective in Q2 2007:-
Ajay Gupta was appointed as Head - Commercial and New Business Development from
1st June 2007.
Ajay, aged 38, graduated from the Birla Institute of Technology and Science,
Pilani with a Master of Science in Economics and Management Studies. Ajay has
fourteen years of experience in corporate finance, capital markets and mergers
and acquisition. He began his career with JM Financial and Investment
Consultancy Services Ltd in 1993 which went on to form a joint venture with
Morgan Stanley in April 1999. In his most recent role with JM Morgan Stanley Pvt
Ltd, he was Associate Director - Corporate Finance and Head of the Energy and
Utilities Group in India.
Mike Walsh was appointed as Chief Corporate Counsel from 1st June 2007.
Mike aged 40, graduated from the University of Aberdeen in Scotland with an
Honours Degree in Law and is qualified in both Scots and English law. He has 15
years commercial experience and has focused exclusively on the oil industry for
the last eight years. He began his career with Ledingham Chalmers in Scotland
before moving to Azerbaijan in 1998 to manage their Baku office. He returned to
Scotland in 2003 and he joined Cairn India from McGrigors LLP, where he was a
partner in their oil and gas department.
YB Sinha (formerly Exploration Director of ONGC) has also joined Cairn India as
Corporate Exploration Advisor.
Rajasthan Community Overview
The International Finance Corporation (IFC) has strengthened its ties with Cairn
India by reaching agreement for a joint funding mechanism to support the
socio-economic development initiatives in Block RJ-ON-90/1. The agreement was
signed by Rahul Dhir and the Executive Vice President and CEO of IFC, Lars
Thunell, in Washington in June. The Enterprise Centre for local and vocational
skill development will be housed in the Industrial Training Institute in Barmer
following the kind agreement of the Government of Rajasthan to provide the
facilities.
Cairn India Limited
Registered Office : 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai 400025
Corporate Office : 3rd & 4th Floors, Orchid Plaza, Sun City, Sector 54, Gurgaon 122 002
Unaudited Financial Results for the Quarter ended 30 June 2007
(All amounts are in thousands of Indian Rupees, unless otherwise stated)
--------------------------------------------------------
--------------------- --------- --------- ----------------
S.No. Particulars Quarter ended Half year Accounting year
ended ended
30 June 2007 30 June 2007 31 December 2006
(Unaudited) (Unaudited) (Audited)
-------- --------------------- --------- --------- ----------------
1 Income from Operations 3,610 8,587 -
2 Other Income 84,859 205,906 59,065
3 Total Income (1+2) 88,469 214,493 59,065
4 Total Expenditure -
a) Staff cost 132,471 339,717 345,962
b) Others 29,704 33,720 3,630
Total 162,176 373,437 349,592
5 Exploration costs 1,979 1,979
6 Interest and Finance costs - 199 1,714
7 Depreciation - - -
8 Profit/(Loss) before taxation (3-4-5-6-7) (75,686) (161,123) (292,241)
9 Provision for taxation - - -
10 Net Profit/(Loss) after tax (7-8) (75,686) (161,123) (292,241)
11 Paid-up Equity Share Capital (Face value of Rs. 10 17,783,994 17,783,994 17,653,144
each)
12 Reserves excluding Revaluation Reserves - - 275,017,837
13 Profit/(Loss) per Share (par value Rs. 10 each)
- Basic/diluted* (Rs.) (0.04) (0.09) (0.94)
14 Aggregate of Public shareholding
- Number of shares 551,555,629 551,555,629 571,470,588
- Percentage of shareholding 31.01% 31.01% 32.37%
-------- --------------------- --------- --------- ----------------
* Not annualised
Notes :
1 The above unaudited financial results were reviewed and recommended by the Audit Committee and approved by the
Board of Directors at their meeting held on 30 July 2007. The limited review, under clause 41 of the Listing
Agreement, has been carried out by auditors of the Company.
2 The Company was incorporated on 21 August 2006 and hence the comparison with the corresponding quarter and half
year of the previous year is not applicable.
3 The Company operates in only one segment i.e 'Oil and Gas Operations'.
4 During the quarter ended 30 June 2007, staff cost includes Rs.131,303 thousands, representing amortisation of
employee compensation expenses pertaining to Employee Share Options.
5 The Finance Act, 2007 requires payment of Fringe Benefit Tax ('FBT') on Employee Share Options benefit provided
to employees. FBT is payable on the date when an option is exercised by employees based on fair market value on
the date of vesting of the options.
During the quarter, no stock options have been exercised.
6 During the quarter ended 30 June 2007, the Company commenced surveys and other exploration activities in one of
the Oil & Gas blocks awarded under NELP-VI.
7 The number of investors' complaints received and disposed of during the quarter ended 30 June 2007 were as
follows-
1) Pending at the beginning of the quarter 413
2) Received during the period 2,733
3) Disposed of during the period 2,941
4) Pending at the end of the quarter 205
8 As on 30 June 2007, the Company and its subsidiaries together have utilised Rs. 65,933,560 thousands for the
purposes listed in the Prospectus, as against the projected utilisation of Rs.88,248,900 thousands. The funds
utilised till 30 June 2007 were as follows-
Rupees in thousands
a) Acquisition of shares of Cairn India Holdings Limited from Cairn UK 59,580,837
Holdings Limited
b) Exploration and Development expenses 4,731,427
c) General corporate purposes 28,048
d) Issue expenses 1,593,248
Place : Edinburgh For and on behalf of the Board
Date : 30 July 2007
Rahul Dhir
Chief Executive Officer
Cairn India Limited
Consolidated Financial Results
Registered Office : 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai 400025
Corporate Office : 3rd & 4th Floors, Orchid Plaza, Sun City, Sector 54, Gurgaon 122 002
Unaudited Financial Results for the Quarter ended 30 June 2007
(All amounts are in thousands of Indian Rupees, unless otherwise stated)
------------------------------------------------
------------------------- -------- -------- ----------
Sr.No. Particulars Quarter ended Half year Accounting
ended year ended
30 June 2007 30 June 2007 31 December
2006
(Unaudited) (Unaudited) (Audited)
------ ------------------------- --------- --------- ---------
1 Income from Operations 2,433,131 4,797,064 387,417
2 Other Income 351,262 712,850 62,215
3 Total Income (1+2) 2,784,393 5,509,914 449,632
4 Total Expenditure
a)( Increase)/Decrease in stock-in-trade (156,587) (61,104) 28,898
b) Operating expenses 340,978 813,956 53,119
c) Staff cost 287,996 596,503 361,126
d) Other Administration costs 65,837 80,474 8,579
Total 538,224 1,429,829 451,722
5 Interest and Finance costs 7,722 9,233 2,746
6 Exploration costs 740,916 1,214,976 59,481
7 Depreciation, Depletion, Amortisation & 404,431 932,249 61,226
Site Restoration expenses
8 Profit/(Loss) before foreign exchange 1,093,100 1,923,627 (125,543)
fluctuation and taxation (3-4-5-6-7)
9 Foreign exchange fluctuation 1,405,594 1,543,642 4,588
10 Profit/(Loss) before taxation (8-9) (312,494) 379,985 (130,131)
11 Provision for taxation
a) Current Tax 128,260 219,170 11,777
b) Deferred Tax 264,899 481,348 43,861
c) Fringe benefit Tax 8,768 18,268 789
12 Net Profit/(Loss) after tax (10-11) (714,421) (338,801) (186,558)
13 Minority Interest - - 25,184
14 Net Profit/(Loss) after tax and Minority (714,421) (338,801) (211,742)
Interest (12-13)
15 Paid-up Equity Share Capital 17,783,994 17,783,994 17,653,144
(Face value of Rs. 10 each)
16 Reserves excluding Revaluation Reserves
17 Profit/(Loss) per Share (par value Rs. 10
each)
- Basic/diluted* (Rs.) (0.40) (0.19) (0.68)
------ ---------------------- --------- --------- ---------
Not annualised
Notes :
1. The above unaudited financial results were reviewed and recommended by the Audit Committee
and approved by the Board of Directors at their meeting held on 30 July 2007.
2. The Company was incorporated on 21 August 2006; the Company acquired majority ownership of
Cairn India Holdings Ltd (including its subsidiaries) on 20 December 2006 and subsequently
on 29 December 2006, acquired 100% ownership of Cairn India Holdings Ltd. The audited
consolidated financial results for the year ended 31 December 2006, incorporate the results
of Cairn India Holdings Ltd (including its subsidiaries) for the period from 20 December
2006 to 31 December 2006. The comparison with the corresponding quarter and half year of
the previous year is therefore not applicable.
3. The Company and its subsidiaries operate in only one segment i.e.'Oil and Gas Operations'.
4. During the quarter ended 30 June 2007, the strengthening of the Indian Rupee against US
Dollar has resulted in recognition of an accounting loss due to foreign exchange
fluctuation of Rs. 1,405,594 thousands. This arises on account of the deposits held in US
Dollar by the foreign subsidiaries, which are intended to be used for capital imports. In
this current phase of project implementation we would ordinarily hold US Dollars to match
our projected dollar outflows for capital expenditure.
5. Tax (including current tax and deferred tax) is calculated at entity level and not on a
consolidated basis; losses arising within one jurisdiction are not available for offset
against profits arising in another. In the period under review, the foreign currency
fluctuation loss arises on USD cash deposits held mainly by one entity and, for tax
computation purposes, is not available for setoff against operating profits.
6. During the quarter ended 30 June 2007, the Company has charged off Rs.740,916 thousands on
account of exploration costs written off as per the 'Guidance Note on Accounting for Oil
and Gas Producing Activities' issued by the Institute of Chartered Accountants of India,
out of which Rs.636,423 thousands pertain to geological / geophysical studies, seismic and
other surveys, and balance of Rs.104,493 thousands pertains to unsuccessful wells written
off.
Place : Edinburgh For and on behalf of the board
Date : 30 July 2007
Rahul Dhir
Chief Executive Officer
Enquiries to:
Analysts/Investors
Preeti Chheda, Investor Relations Manager +91 9910894352
Media
David Nisbet, Director, Corporate Communications +91 99104 87715
About Cairn India Limited
O 'Cairn India' where referred to in the release means Cairn India Limited
and/or its subsidiaries, as appropriate.
O 'Cairn' where referred to in this release means Cairn Energy PLC and/or
its subsidiaries (including Cairn India), as appropriate.
O Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with
operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
O On 9 January 2007, Cairn successfully concluded the flotation of its
Indian business with the commencement of trading of Cairn India Limited on the
Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLC
currently holds a 69% shareholding in Cairn India Limited.
O Cairn India is currently focused on exploration and production in India
where it has a working interest in 15 blocks, two of which are producing
hydrocarbons. The company holds material exploration and production positions
in west India and east India along with new exploration rights elsewhere in
India.
O This focus on India 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. More than 20
discoveries have been made in Rajasthan block RJ-ON-90/1.
O In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production
Sharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858
km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is shared
between Cairn India and ONGC, with Cairn India holding 70% and ONGC having
exercised their back in right for 30%. A further Development Area (430 km2),
including the Bhagyam and Shakti fields, is also shared between Cairn India and
ONGC in the same proportion.
O The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and
ONGC.
O India currently imports approximately 2,000,000 barrels of oil per day
(bopd). It produces approximately 700,000 bopd itself of which approximately
50,000 bopd comes from the Cairn India operated Ravva field on the east coast of
India
O For further information on Cairn India Limited see www.cairnindia.com
Glossary
Technical
2P proven plus probable
3P proven plus probable and possible
2D/3D two dimensional/three dimensional
boe barrel(s) of oil equivalent
boepd barrels of oil equivalent per day
bopd barrels of oil per day
bscf billion standard cubic feet of gas
EOR enhanced oil recovery
FDP field development plan
mmboe million barrels of oil equivalent
mmscfd million standard cubic feet of gas per day
PSC production sharing contract
The Fatehgarh is the name given to the primary reservoir rock of the Northern
Rajasthan fields of Mangala, Aishwariya and Bhagyam.
The Barmer Hill is a lower permeability reservoir which overlies the Fatehgarh.
The Dharvi Dungar forms the secondary reservoirs in the Guda field and is the
reservoir rock encountered in the recent Kameshwari West discoveries.
The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbli
is the primary reservoir for the Raageshwari field.
These materials contain forward-looking statements regarding Cairn India, our
corporate plans, future financial condition, future results of operations,
future business plans and strategies. All such forward-looking statements are
based on our management's assumptions and beliefs in the light of information
available to them at this time. These forward-looking statements are, by their
nature, subject to significant risks and uncertainties and actual results,
performance and achievements may be materially different from those expressed in
such statements. Factors that may cause actual results, performance or
achievements to differ from expectations include, but are not limited to,
regulatory changes, future levels of industry product supply, demand and
pricing, weather and weather related impacts, wars and acts of terrorism,
development and use of technology, acts of competitors and other changes to
business conditions. Cairn India undertakes no obligation to revise any such
forward-looking statements to reflect any changes in Cairn India's expectations
with regard thereto or any change in circumstances or events after the date
hereof. Unless otherwise stated the reserves and resource numbers within this
presentation represent the views of Cairn India and do not represent the views
of any other party, including the Government of India, the Directorate General
of Hydrocarbons or any of Cairn India's joint venture partners.
This information is provided by RNS
The company news service from the London Stock Exchange
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