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MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc

Cairn Energy Plc · Mar 10, 2009 · 56 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 1
    Preliminary Results March 2009 Discovering hidden value through entrepreneurial exploration
  2. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 2
    Agenda Introduction Sir Bill Gammell Group Chief Executive, Cairn Energy PLC Group Financial Overview Jann Brown Group Finance Director, Cairn Energy PLC India Rick Bott Chief Operating Officer, Cairn India Ltd Greenland Dr…
  3. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 3
    GROUP OVERVIEW India Rajasthan integrated phased development on track Papua Greenland New Guinea Rajasthan first commercial oil production Q3 2009 Focus on delivering material and growing resource base Greenland Material…
  4. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 4
    Financial Overview Jann Brown, Group Finance Director - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration
  5. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 5
    FINANCE - Overview Production (entitlement basis) Key Accounting Numbers 2008 2007 m m 15,000 Gross Revenue 299 288 production: 12,801 76,298 boepd Gross Profit 137 62 Impairments / unsuccessful (59) (96) 10,189 exploration…
  6. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 6
    FINANCE - Cashflow 634m 164m CIL 51m private Pr per e- at o placement ta in ve t x g ei es i n ac d ec r Expenditure on Capex R Inte flo ti w vit fr ies Other om Exploration / Appraisal 5m…
  7. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 7
    FINANCE - Cash Balances Year end net cash position: Since year end: CIL Cash 1,105m 161m raised on PLC placing PLC / Capricorn Cash 293m Total Cash 1,398m 850m debt fully drawn down CIL Debt (500m) Additional debt capacity if…
  8. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 8
    FINANCE - Capex Guidance 2009 India 2009 Greenland / elsewhere Total Total 62m 970m Exploration / Other Development / 4% Exploration / Appraisal Producing Other Appraisal 96% 95% 1% 4% Rajasthan 2009 Development…
  9. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 9
    FINANCE - Operational Flexibility Full Capex review to maintain focus on Generating near term revenues from world class Mangala field Targeting material growth potential in Greenland Other Capex deferred Operatorship allows…
  10. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 10
    India Rick Bott, Chief Operating Officer - Cairn India Limited Discovering hidden value through entrepreneurial exploration
  11. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 11
    RAJASTHAN - Overview Rajasthan 25 discoveries 3 largest fields Mangala, Bhagyam and Aishwariya (MBA) under phased development Saraswati, Raageshwari Oil and Raageshwari Gas also under development 3,000 km2 approved Development…
  12. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 12
    RAJASTHAN - Growing Reserves and Resource Base Total Basin Reserves and Resources The 3 MBA Fields 22 Other fields (inc Barmer Hill) Fatehgarh reservoir Ongoing work to monetise Saraswati, 2 billion boe resource and reserves…
  13. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 13
    RAJASTHAN - MBA Production Capacity and Profile Mangala Processing Terminal (MPT) four processing trains; with production capacity 205,000 bopd: Schematic Q3 2009 - Train 1 (30,000 bopd capacity) Initial export by trucking Initial…
  14. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 14
    RAJASTHAN - Growing Resource Base MBA Production profile with secondary recovery by water flood Schematic Initial MBA Enhanced Oil Recovery (EOR) targeted EOR 175,000 bopd plateau production potential to potential 300 mmbbls…
  15. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 15
    RAJASTHAN - Integrated Development MPT Well pads Bhagyam Mangala 350 wells 40 well pads Aishwariya Water System MPT Extraction of saline water and pipeline MPT four processing to MPT for heating and injection into trains;…
  16. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 16
    RAJASTHAN - Upstream Construction Upstream phased development on track 6,000 workforce Key elements to enable production at advanced stage Phased integrated development Safety systems Intrafield pipelines Separation facilities…
  17. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 17
    RAJASTHAN - Upstream Construction 18 09S0021CE00 Discovering hidden value through entrepreneurial exploration
  18. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 18
    RAJASTHAN - Upstream Construction 19 09S0021CE00 Discovering hidden value through entrepreneurial exploration
  19. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 19
    RAJASTHAN - Commercial Production Q3 2009 Trucking Trial crude runs Mangala to Gujarat coast Insulated tankers Coastal delivery point Suitable storage tanks plus pumping and uploading facilities at Kandla Mangala…
  20. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 20
    RAJASTHAN - Pipeline Construction Pipeline on track 4,000 workforce Integrated development 600 km heated modular design export pipeline Land acquisition Above ground installations Viramgam terminal 21 09S0021CE00…
  21. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 21
    RAJASTHAN - Pipeline Construction Built through eight districts and more than 250 villages in Gujarat and Rajasthan Panipat Pipeline manufacture and insulation Rajasthan MPT Line pipe laying 9 construction spreads Kandla…
  22. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 22
    RAJASTHAN - Pipeline Construction 23 09S0021CE00 Discovering hidden value through entrepreneurial exploration
  23. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 23
    RAJASTHAN - Pipeline Construction 24 09S0021CE00 Discovering hidden value through entrepreneurial exploration
  24. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 24
    RAJASTHAN - Crude Sales Contractors sell Crude to Government (or its nominee) on price determined as per PSC Government Government Free Nominees purchases full Marketing volume Contractor can freely lift, sell & transport GoI…
  25. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 25
    RAJASTHAN - Crude Sales Overview: GoI agreed to shifting of Delivery Point GoI agreed to nominate multiple buyers Blending studies carried out Rajasthan crude is medium sweet 28 API Evaluated the supply chain constraints…
  26. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 26
    INDIA - Exploration VN-ONN-2003/1 GV-ONN-2003/1 RJ-ONN-2003/1 Finish processing of 2D Complete 550 km 2D 2 to 4 wells seismic. Decision on seismic; processing and Phase II interpretation GV-ONN-2002/1 Complete drilling operations,…
  27. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 27
    INDIA - Rajasthan Incremental Growth Separate oil discovery adjacent to Raageshwari Oil Field Raageshwari field Test: 500 bopd and 0.4 mmscfd 40o API waxy oil Raageshwari-East-1Z 10.24m net pay, 81m gross in two oil columns…
  28. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 28
    Greenland Dr Mike Watts, Exploration Director - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration
  29. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 29
    GREENLAND Key emerging Arctic province Political World class resource potential Risk Favourable access to Atlantic markets Vastly underexplored 6 wells in west Greenland in an area three times the size of the North Sea…
  30. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 30
    GREENLAND 10.2 TCF USGS 1.35 Billion bbls Total Risked Resource Potential 0.3 Billion bbls 52 billion boe 86.2 TCF le 8.9 Billion bbls C irc 52 TCF c tic Ar 8.1 Billion bbls 7.3 Billion bbls 1.1 Billion bbls Risked…
  31. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 31
    GREENLAND - West Geological Basins Central Graben system at same scale Cairn acreage offers: Baffin Basin and NORWAY sub-basins Exposure to 3 separate sedimentary basins GREENLAND Potential for material structures, leads and…
  32. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 32
    GREENLAND - Ongoing Work Programme Baffin Bay North East Greenland 2010 Licensing Round 2012 Licensing Round Pre-qualification 2009 GREENLAND Disko West 1 East Greenland Processed lines from 2008 seismic survey 4 Cairn Prospecting…
  33. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 33
    GREENLAND - Baffin Basin Disko West Total Area: 23,024 km2 Water Depths 260m to 1,000m Planned 2009 Survey along potential 7,130 km 2D Seismic completed 2008 pipeline route Qaarsut GRO-3 GREENLAND Cairn (Op) 87.5% Nunaoil…
  34. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 34
    GREENLAND - Baffin Basin Disko West REGIONAL SLICKS AND SEEPS Extensive surface oil slicks 20-40 kms and Scott Inlet * sea bed seeps Persistent surface slicks reported between 1971 and 1980 observed offshore Scott Inlet, Canada…
  35. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 35
    GREENLAND - Baffin Basin Disko West 2008 Sigguk Seismic Structure Map Extensive satellite slicks Faults G Tertiary Fan Complex Slick lineament possibly fault related Tilted Fault Block Northerly current drift from…
  36. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 36
    GREENLAND - West Basin Lady Franklin and Atammik Evaluation of 2008 Volcanics electromagnetic survey (CSEM) ongoing Several structural leads and prospects associated with resistive responses Ikermiut-1 Sisimiut Kangerlussuaq…
  37. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 37
    GREENLAND - South Basin Dispersed bitumen with marine source 3,062 km 2D seismic completed 2008 signature and gas inclusions encountered in basement rocks* Narsarsuaq 3,000 km infill 2D seismic 2009 Conceptual gas development…
  38. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 38
    GREENLAND - South Basin Plate Reconstruction Hekja Kangamiut Cretaceous plate tectonic Nukik reconstruction with the GREENLAND Labrador Sea closed Snorri 1975 EastCan Qulleq Labrador Hopedale Five significant gas + 1978…
  39. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 39
    GREENLAND - Forward Programme Ongoing interpretation, evaluation and ice management studies 2009 Baffin Basin Site surveys West Basin Prospect and lead inventory review South Basin Infill seismic East Basin Reconnaissance…
  40. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 40
    Concluding Remarks Sir Bill Gammell, Group Chief Executive - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration
  41. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 41
    Concluding Remarks India Rajasthan integrated phased development on track Rajasthan first commercial oil production Q3 2009 Focus on delivering material and growing resource base Greenland Material frontier exploration 72,000…
  42. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 42
    Appendix 43 09S0021CE00 Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
  43. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 43
    PRODUCTION 2008 Production (entitlement basis) boepd 2008 2007 15,000 Gross field production 76,298 87,031 Entitlement 12,801 19,809 12,801 Prices realised 2008 2007 10,189 10,000 Oil per bbl () 98.64 73.56 Oil 54.4% Gas per…
  44. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 44
    REVENUE AND GROSS PROFIT Production costs 14.28 (2007: 9.20) per boe 288m 299m (including stock movements) (revenue) (revenue) 300 fixed cost base over lower production in Ravva, CB/OS-2 and Sangu 67m 67m Higher pre-award costs…
  45. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 45
    CAIRN INDIA BALANCE SHEET - CAPITAL EXPENDITURE Cairn India work programme capex funded 970m 1,000 from: 1% 605m net cash on balance sheet (net of 500m debt drawn) 800 Positive operating cash flow Revolving 850m credit facility…
  46. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 46
    PLC / CAPRICORN BALANCE SHEET - CAPITAL EXPENDITURE 100 Cash on balance sheet 288m 79m 4% March 2009 placing 161m 62m 4% 50 2009 Exploration Forecast Other 96% 2% 96% Greenland 50% Mediterranean South Asia 31% 0 17%…
  47. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 47
    CLEAN NET INCOME 2008 2007 m m Post Tax Profit as reported 367 1,556 Add back non-recurring (income)/expenditure Foreign currency exchange (gain)/loss 10 6 Exceptional gain on deemed disposal of subsidiaries (356) (1,579)…
  48. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 48
    INCOME STATEMENT 2007 2008 (restated) Production (boepd) 12,801 19,809 Average price (/boe) 63.88 39.70 m m Revenue 299.3 287.7 Ravva and Production costs North Indian (66.9) (66.5) Unsuccessful exploration costs Exploration…
  49. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 49
    BALANCE SHEET 2007 2008 (restated) m m Oil and gas exploration / appraisal assets and 1,682.6 1,105.3 development/producing assets Exploration 563.0m Other non-current assets Development 1,119.6m 21.2 38.6 Total non-current…
  50. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 50
    CASHFLOW STATEMENT 2008 2007 m m Net cash generated from operating activities 150.4 155.3 Oil and gas capital expenditure (618.9) (400.4) Other capital expenditure (5.4) (10.6) Net acquisition cost for business combinations* (1.5)…
  51. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 51
    2008 CAPITAL EXPENDITURE BY TYPE OF SPEND TOTAL 2008 CAPEX 693m (based on additions to fixed assets) Development / Producing 568m 81.9% Exploration / Appraisal Other 117m 8m 17% 1% 52 09S0021CE00 Discovering hidden value…
  52. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 52
    2008 CAPITAL EXPENDITURE BY BUSINESS TOTAL 2008 CAPEX 693m (based on additions to fixed assets) Cairn India Limited Group 614m 88% Capricorn Oil Limited Group 79m 12% 53 09S0021CE00 Discovering hidden value through…
  53. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 53
    GREENLAND - Drilling History GRO-3 1996 Wellname 6 Offshore wells Gronartic Year 1 Onshore well Qaarsut Operator Land Only two incidents of rig moving off SIGGUK Rig Type 64 Days EQQUA Exxon, Chevron, Dong, GREENLAND…
  54. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 54
    GREENLAND - ICEBERG MANAGEMENT Detection and Measurement Marine Radar Satellite Radar HF Radar Aerial & Vessel Reconnaissance Threat Assessment Physical Intervention Observation Zone Towing, Water Cannon Prevention Zone 3 Ice…
  55. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 55
    MEDITERRANEAN - EXPLORATION Albania JONI-5 3D Seismic survey planned 2009 Spain Albania Area of new 3D Seismic (400 km2) Tunisia Prospects high graded for Alpha Detailed seismic coverage prospect Spain Awards pending…
  56. MARCH 2009 PRELIMINARY RESULTS – Cairn Energy Plc – slide 56
    Investor Relations contacts David Nisbet Louise Burgess Group Corporate Affairs Investor Relations and Communications Assistant E-mail: E-mail: david.nisbetcairnenergy.com louise.burgesscairnenergy.com Tel: +44 (0)7711 146 068…

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