Investor Presentation Discovering Hidden Value Through Entrepreneurial Exploration October, 2012
Cairn Energy Experienced exploration and production (E&P) operator FTSE 250 London listed Company (CNE) post 4.5billion sale of majority stake in Indian business Business model Continue to create value and opportunities through…
Delivery of Consistent Strategy Returned US3.5 billion (bn) to shareholders in February 2012, 4.5 bn in last five years Financial flexibility with on-market sale of 3.5% shareholding in Cairn India (CIL) for a net cash consideration…
Capital Growth Opportunity Material contingent resource base New frontiers opened up through acquired North West Europe licence applications, farm-ins and acquisitions 2012 Upstream E&P Assets Cairn India 10% Interest…
Finance Capital Discipline and Allocation Financial assets available for investment 3.0 bn Funding required to develop North West Europe assets Currently expected 1.5 bn to 2 bn* over five years Targeting 1 bn operating cash flow per…
Growth Strategy New Basin Initiatives North West Europe Re-balancing Organic Growth through the portfolio Transformational Exploration and Appraisal for organic Exploration Potential Development and Production growth Sustainable…
North West Europe Growth Area The recent corporate acquisitions brought discoveries and pre-development projects that now underpin Cairns value (aggregate cost US7/boe) Objective to use this platform to create sustainable production…
North West Europe Pre-Development Projects Cairns net interest: KRAKEN Catcher Gross mmbbls1 Greater Catcher area 30% (40 mmboe) P50 160 Varadero Kraken 25% (40 mmboe) Net mmbbls1 Ketos P50 Mariner 6% (26 mmboe) Kraken 40…
North West Europe Forward Drilling Programme Active lower risk exploration programme in next 16 months Tybalt Kakelborg 33/5 & 33/6b 211/8c & 211/13c Huggorm 33/9 Skarfjell 2012 2012 Timon 35/8 & 35/9 Wells Equity interest % 2013…
North West Europe New Opportunities Norwegian Continental Shelf APA 2012 Licence Round Active new business programme to expand and replenish UK 27th Licence Round portfolio UK 27th Licence Round: 14 applications submitted (some as…
New Basin Initiatives Transformational Potential Existing positions Pitu Southern Greenland Morocco Valencia Basin, Spain Targeting Targeting 4.0 4.0 bnbn bbls* bbls* of of Yet Yet to to find findpotential potential…
Greenland First phase exploration completed: North East Primary Bid Rounds area of 3 and 4 Extensive knowledge, database and operating capability: focus Pitu 2D seismic 85,000 km; 2 x 3D seismic surveys; 8 exploration wells;…
Baffin Bay: Melville Sub Basin Pitu Block Yet to find Pitu Block resource Industry Activity: Pitu Block estimate 3 bn bbls unrisked Conoco Cairn 2D seismic 56.875% (Op); survey 2012 Statoil 30.625%; Current Pitu prospect and lead…
Baffin Bay: Melville Sub Basin Pitu Block Prospect 1 (3D defined interpretation ongoing) Prospect 2 (2D defined) Melville High Structure Basin Margin Fan Basin high with stacked reservoir potential Unrisked 267 mn bbls Shallow prospect…
South Greenland SW 10km NE 3D structure map with High anomalies (Projected onto line) amplitudes 3D Seismic Section Interpretation of 2011 3D seismic commenced 2011 High anomalies 2011 seabed geochemical programme 2012…
North Africa Morocco New Basin Entry Foum Draa Offshore 1-3 Spain Cairn farm-in subject to all necessary approvals JV partners: Cairn 50% (Operator); San Leon (14.2%); Serica (8.3%) and Longreach Oil and Gas (2.5%); Office Foum Draa…
Spain Valencia Basin Existing permits France 5 blocks awarded January 2011 Frontier contract terms Barcelona 100% interest 3D seismic planned Spain Drilling targeted for 2014/2015 Alta Mar-1 Alta Mar-2 subject to necessary…
Trinidad and Tobago Columbus Basin Trinidad bid round Cairn Bid Blocks Offered schedule Open Licences Current Licences Bid submitted 4th Grenada September 2012 Cairn (Operator); Trinity - 1 block submission Competitive bid round…
Cyprus and Lebanon East Mediterranean Levant Basin Cyprus bid round schedule Bids submitted May 2012 Cairn (Operator); Marathon Oil, CCEnergy S.A.L and Oranje-Naussau Energy B.V. - 2 block submission Syria Competitive bid round (33…
Cairn in 2012 Vision of balanced business Operated frontier exploration Non-operated lower risk exploration Sustainable production to fund future exploration Clear focus on exploration and appraisal North West Europe Frontier…
Appendix Discovering Hidden Value Through Entrepreneurial Exploration Investor Presentation, October 2012 22
Current Assets 27 licences held in the UK and Norwegian sectors of the North Sea including: Norway UK Skarfjell Kraken 9/2b 35/8 & 35/9 Catcher 28/9 Frode 2/1 & 28/10c Geite 7/7, Mariner 9/11a 7/8 & 7/11 Greenland Atammik…
Partnerships India North Sea ONGC Premier Petrocon Wintershall Ravva Oil (Marubeni) Enquest TATA Talisman ENI Shell Mediterranean ETAP Marathon Oil Bangladesh Oranje-Naussau Santos International Energy B.V. Holdings Pty Ltd…
History Discovering Hidden Value Through Entrepreneurial Exploration Investor Presentation, October 2012 25
Business Model for Growth and Re-gearing Return Value to Shareholders Create Value Realise Value Create Value Realise Value Create Value Discovering Hidden Value Through Entrepreneurial Exploration Investor Presentation,…
Vision La Clairvoyance Rene Magritte Discovering Hidden Value Through Entrepreneurial Exploration Investor Presentation, October 2012 27
Production Main Projects More than 40 discoveries in South Asia including the current 175,000 bopd production from Rajasthan Bangladesh, Exploration to development India -Rajasthan Frontier exploration to production India- Ravva -…
Flagship Project Rajasthan (Exploration to Production) 250 Gross Reserves, History Resources 1 140 and Potential 2 1015 Risked Prospective 1997 - Transaction with Shell gives Cairn 10% interest Raageshwari Resource and Saraswati…
Flagship Project Rajasthan (Exploration to Production) Rajasthan Vision based on resource base and Existing fields Ravva and subject to investment and all necessary Government of India approvals BOPD Cambay Basin Key Highlights…
Flagship Project Ravva (Redevelopment) Key Highlights Reserves taken from 100 mmboe to 300 mmboe post investment by Cairn Production increased 14 times over Produced at plateau rate in excess of 50,000 bopd for Ravva Ravva 9 years…
Loading...
