Cairn Energy PLC Investor Presentation August 2012
Overview Investor Presentation, August 2012 Discovering hidden value through entrepreneurial exploration 3
Cairn Energy PLC 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 Entrepreneurial exploration with focus on hidden…
Strategic Overview To become the exploration company of choice, for Investors and Governments, by offering to explore for transformational potential in a rapid and safe manner within a well balanced exploration and production…
Track Record of Value Creation Cairn strategy creation of material growth potential Realisation and return of value to shareholders Equity raised in UK markets between 1988 and 1993: 70 million Equity raised in UK markets since…
Current Focus Delivering Strategy Focus on a Balanced Portfolio Current Asset Base + Growth Model Business Strategy Investor Presentation, August 2012 Discovering hidden value through entrepreneurial exploration 7
Delivering Strategy Completed sale of 40% controlling stake in Cairn India to Vedanta Returned 3.5 billion to shareholders in February 2012 Total 4.5 billion returned to shareholders in last five years Greenland farm down to…
Exploration Led Growth Within a Balanced Portfolio Exploration within mature Frontier basins or established basins Producing Asset New Basin Initiatives Near Term Exploration e.g. Ketos, Kakelborg, Bonneville, Cyprus…
Current Asset Base + Growth Model Pitu / Greenland / Spain / North West Europe / Eastern Med Applications Growth Strategy Value of CIL Cash stake on BSE 1 CIL Holding 2 (18%) 3 Investor Presentation, August 2012…
Business Strategy Pitu Area of current focus (+ other Greenland blocks) Spain (5 blocks + Applications) Eastern Mediterranean Applications Transformational Exploration (Operating focus) Near-term Exploration…
Assets and investments North West Europe Agora Oil & Gas AS Nautical Petroleum plc Greenland Key Highlights Second Phase Mediterranean Spain Cyprus and Lebanon Cairn in South Asia Rajasthan Value Creation and Realisation…
North West Europe - Agora Oil & Gas AS Agora is an explorer focusing on mature parts of the UK and Norwegian North Sea: former Revus Energy and Enterprise management and exploration team Highly experienced team with a 20 year track…
Acquisition of Nautical Petroleum plc AIM listed E&P company with exploration, appraisal and development assets in UK North Sea Build on achievements of Nautical in the North Sea by applying Cairns expertise and access to capital to…
Overview - Nautical Petroleum plc Nautical provides Cairn with: 2C contingent resources of 86 mmboe comprising; Additional 15% interest in the Greater Catcher area planned for development taking Cairns overall interest to 30% 25%…
Sustainable Cash Flow Cairns net interest: KRAKEN GREATER Greater Catcher area 30% (40 mmboe) CATCHER Kraken 25% (40 mmboe) Gross mmbbls1 Gross mmbbls2 Mariner 6% (26 mmboe) P50 P50 160 130 Planned near term appraisal and Net…
2012/13 Exploration and Appraisal Programme Greater Catcher additional Prospectivity: Kakelborg Additional prospects on block Application submitted for adjacent open acreage Kraken / Ketos 50% interest in Ketos prospect 3D seismic…
Greenland Key Highlights Leading acreage position 1/3rd UK North Sea North East (equivalent to 15 quadrants or 450 blocks) Bid Rounds 3 and 4 Round 1 entry (2007) with Exxon, Chevron and Husky Round 2 Round 2 entry (2010) with…
Greenland Second Phase - Pitu Focus (Baffin Bay Melville Basin) Pitu awarded and contract signed Jan 2011 Greenland THULE Farm out to Statoil Jan 2012 8,170 km2 (36 UK blocks or 1.2 quadrants) 20% covered by 3D seismic Cairn…
Mediterranean The Mediterranean is largely unexplored with significant potential Area of focus as Cairn seeks exposure to transformational exploration in a balanced portfolio Early stages of frontier exploration in Spain Expect to…
Spain Frontier contract terms France Existing permits 5 blocks awarded January 2011 Barcelona 100% interest 3D seismic targeted for Q4 2012 Spain Drilling planned for 2014/2015 Alta Mar-1 subject to necessary consents Alta…
Cyprus and Lebanon Cyprus bid round schedule (expected) Formal announcement February 2012 Participating, with consortium Syria partners in current bid round offshore Cyprus Cyprus Bid Round (12 industry bids on 33 blocks 2012…
Cairn in South Asia Underexplored Majors had only Exploration, Development and Production Successes drilled 12 exploration wells in India Rajasthan, India Sangu, Bangladesh between 1880 and 1990 Mangala Sangu Discovery Bhagyam First…
Value Creation and Realisation in South Asia 350,000 Value creation Value Realisation 300,000 300,000 boepd 250,000 More than 40 Discoveries Cairn / Vedanta IPO of CIL Transaction cedes subsidiary control of CIL 200,000…
Appendix Investor Presentation, August 2012
North West Europe - Catcher Area Carnaby, Catcher, Burgman and Varadero discoveries Medium grade crude (24 - 30 API) Re-mobilised and injected sands with excellent reservoir qualities Catcher Key uncertainty is connectivity and…
North West Europe - Skarfjell Oil Discovery Skarfjell well 35/9-7 found high quality upper Jurassic reservoir sandstones containing 53m light oil pay over a 168m gross Titan interval No fluid contact was observed down dip appraisal…
Kraken Development Operator EnQuest 60% interest (Nautical 25%) Nautical farmed-out 25% interest in Jan 2012 to EnQuest with carry of up Block 9/2b & 9/1a to 240m (firm carry of 150m and contingent carry of 90m) Kraken Three-way dip…
Agora Asset Overview Net Mean Net Mean Net 2C Unrisked Risked Interest Contingent Field / Licence % Key Partners Resources Prospective Prospective Resources Resources (mmboe) 2 (mmboe) 2 (mmboe) 2 Development / appraisal…
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