CAIRN ENERGY PLC 06S0128CE00 Preliminary Results Presentation March 2006 06S0128CE00
Preface This presentation and the associated slides and discussion contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and…
CAIRN IN SOUTH ASIA 25 oil & gas discoveries JV investment: to date 2 billion planned 2 billion Developed reserves 450 mmboe (Sangu, Ravva & Gujarat) Rajasthan resource base 1 billion mmboe New Indian headquarters opened in…
VISION South Asia as hydrocarbon-rich destination Rapidly growing energy markets Favourable investment climate BANGLADESH NE KAT HMA DELHI PA NDU L FOCUS Rajasthan Uttar Sustained investment and re-investment Pradesh Bihar…
RAJASTHAN Overview 17 Discoveries US 450 million (net) Risk Capital Significant future cash flow Northern Fields Increase in reserve & resource base Mangala FDP awaiting MC approval Mangala first production target 2008 OC…
SOUTH ASIA FUTURE GROWTH OPPORTUNITY India third fastest growing economy Optimise Cairns position in the Rajasthan value chain Expanding exploration opportunities Cairns long term vision for India confirmed by unprecedented…
Partial IPO of Indian Business Examining partial IPO prior to first Mangala oil Natural evolution: increasing autonomy for the Indian business Consistent with objective of optimising and realising shareholder value over time…
SOUTH ASIA BUSINESS 200 mmscfd 120,000 100 100,000 0 Jan mmscfd 60,000 Apr Jul Oct Dec Frontier Sangu 2005 Gas Production Exploration 0 Jan Apr Jul Oct Dec Sangu Lakshmi & Gauri 2005 Gas Production Gross Production…
Rajasthan Block Status Appraisal Area 2,884 km2 Development Area 1,228 km2 18 month Extension Extension OC Approved to November 14th 2006 Feb 1st 2006 Work programme commitment fulfilled Discretionary activity ongoing DA…
Exploration Activity In Northern Area 3 Appraisal wells Mangala-7 Bhagyam 5, 6 & 7 Mangala-7ST SHAKTI N-I Bhagyam- North N-I MANGALA South BHAGYAM AISHWARIYA N-R-4 Discovery N-X N-E VIJAYA appraised by N-R-5 Awaiting…
Bhagyam Appraisal Drilling Seismic Line Recent Appraisal wells Y requested by ONGC Bhagyam 3 Bhagyam appraisal wells 5 (Nov 2005), 6 (Dec 2005) and Bhagyam 6 7 (Feb 2006) all came in high to prognosis N-I increasing Oil In…
Mangala Location of Main Bounding Fault SW Ma-7 Ma-7ST Ma-6 Ma-3 NE Confirmation of Mangala Appraisal Drilling exact fault Dec 2005 to Jan 2006 position has a confirmed the main direct and boundary fault position is positive…
Mangala/Bhagyam/Aishwariya Water + Oil Saturations Irreducible water saturations have been Old New measured from new core material (which are Swi So Swi So more accurate than previous log estimates) D taken at Bhagyam and Mangala.…
CAIRN RAJASTHAN GROSS RESOURCE ESTIMATES to 2041 Estimate of additional recovery or The figures in this summary 2005 Estimates submitted in Current estimates based 2005 contingent resource volume assuming encompass all Resource…
INDEPENDENT GROSS OIL IN PLACE & FIELD RESERVE ESTIMATES DeGolyer & MacNaughton March 2005 March 2006 FIELD STOIIP mmbbls STOIIP mmbbls Northern Fields 1P 2P 3P 1P 2P 3P Mangala 934 1067 1086 1125 1206 1259 Bhagyam 327 354 370 546…
Cambay Basin CB/OS-2 CB-X Suvali Commerciality Lakshmi & Gauri Terminal approved at OC level 2006 - Barge based workovers to re-instate 2 Lakshmi wells FDP pending 2007 - Anticipate 1-2 infill gas wells & 2-3 oil wells with…
KG Basin & NELP VI Worlds biggest Gas Discoveries 2002, 2003, 2005 40 0m Ravva reserves 300 mmboe ONGC Oil Discovery Feb 2006 KG-DWN-98/2 2005 / 2006 3 Gas Discoveries KG-DWN-98/2 2000 / 2001 5 Oil & Gas Discoveries…
Bengal Basin Sangu & Bangladesh Exploration Sangu Reserves Sangu is not covered Gross 2P EUR estimate at end 2005 by 3D Seismic SANGU-2 728.3 bscf (2004: 950 bscf) BANGLADESH Gross write down of 222 bscf attributable to: i)…
HIMALAYAN FORELAND BASIN Geochemical Interpretation of Structural analysis Canadian Aid project Modelling Study of rock & oil seismic (1980s) conducted 2005 samples ongoing ongoing 1 2 Gravity and Magnetic modelling study…
Northern Area Development - Facilities Design SHAKTI Operating Committee approval of N-I AISHWARIYA Mangala & Aishwariya FDP Production Capacity: BHAGYAM 10 - 15+ kbopd (MC approval pending) Production Capacity: 20 - 40+ kbopd…
NORTHERN Area Development Schedule 2004 2005 2006 2007 2008 2009 2010 Appraisal Drilling Impact of incorporating Mangala Environmental Clearance Bhagyam into Northern NORTHERN FIELDS Discovery Engineering & Design January…
Northern Area Development - Estimated Costs* SHAKTI AISHWARIYA Capex Life of Field: N-I US 230 million + 40% to -20% Plateau Opex: 3 3.50 / bbl BHAGYAM Development & cost planning at Capex Life of Field: US 270 million + 40%…
CENTRAL & Pit oil evacuation by road tanker SOUTHERN FIELDS EARLY PRODUCTION AND SUBSEQUENT TIE IN TO NORTHERN DEVELOPMENT Extended Well Tests and removal of pit oil by Road Tanker ongoing VIJAYA VANDANA Raageshwari &…
OIL PRICE & SALES AGREEMENT Obligation to sell to Government (or its nominee) until India self sufficient MRPL nominated as buyer and negotiations ongoing PSC requires crude to be acquired at Contractor nominated delivery point…
RAJASTHAN OIL EXPORT PIPELINE DESIGN Mangala 6 mmtpa Complexity: Medium Hot oil + DELHIstation Pump heated pipeline Mangala Mundra 471km Insulated Pipeline System (either single or dual) Pump Station Anticipated 150,000…
ACCOUNTING DEVELOPMENTS IFRIC guidance on oil & gas accounting issued November 2005 Cairn has adopted IFRS and a successful efforts based accounting policy for its 2005 financial statements Key impacts: Costs of unsuccessful…
PRODUCTION (ENTITLEMENT BASIS) 30,000 24,000 2005 28,240 to 25,500 Gas / Liquids 25,000 80.3% 22,789 7,693 6,000 Oil 19.7% 20,000 7,375 500 boepd 15,000 307 13,797 11,000 to CB/OS-2 7,591 12,000 10,000 Gryphon (sold…
REVENUE AND GROSS PROFIT 2004 * 2005 boepd 22,789 28,240 Average price: 300 262.6m Gas per mcf () 3.16 3.14 (revenue) Oil per bbl () 37.61 54.18 250 Per boe () 24.06 25.44 50.2m Production cost / boe () 6.09 4.87 Depletion and…
EARNINGS 300 262.6m Cost of sales (revenue) Administrative expenses 250 Exceptional gain on farm-out to ONGC of interests Operating profit before 168.9m in KG-DWN-98/2 exceptional gain 200 and CB/OS-2 Financing and taxation…
BALANCE SHEET CAPITAL EXPENDITURE 450 2006 forecast capex by asset 420.0m Rajasthan 400 4% 305m 72% Rajasthan Rajasthan Development Exploration 350 95m 210m 300 60% 250 241.8m million 3% Other Non 18%…
CASHFLOW 3.2m 1 39 5m .6m Net interest . 27 received ac ratin m 1 o tie g op w fr Sa nd ts oil ass s le gas a e lo of tivi e Inf Other 7.6m Development / Producing CASH IN 270.3m…
FINANCIAL OVERVIEW Initial booking of Mangala, Saraswati and Raageshwari oil reserves; no income statement impact Strong Balance Sheet Net cash at 31 December 2005 of 95.5m (2004: 138.3m) 240m unutilised unsecured committed…
GROWTH OPPORTUNITY India 3rd fastest growing economy in the world Rising reserves & resources Increasing production Leverage to oil price Strategic position Right place . right time. Examining partial IPO of Indian business…
APPENDIX 06S0128CE00
INCOME STATEMENT 2005 2004 (Restated) Production (boepd) 28,240 22,789 Average price (/boe) 25.44 24.06 m m Revenue 262.6 172.9 Farm out of Production costs interests (50.2) (50.8) in KG-DWN-98/2 Unsuccessful exploration costs…
BALANCE SHEET 2004 2005 (Restated) m m Oil and gas exploration / appraisal assets and 778.7 775.9 development/producing assets Other non-current assets 9.5 13.0 Exploration 321.8m Development 456.9m Total non-current assets…
CASH FLOW STATEMENT 2004 2005 (Restated) m m Cash generated from operations 139.6 138.5 Interest paid Farm-out of interests to (1.2) (2.3) Tax paid ONGC in KG-DWN-98/2 (6.6) (8.5) and CB/OS-2 Net cash generated from operating…
2005 CAPITAL EXPENDITURE BY TYPE OF SPEND TOTAL 2005 CAPEX 241.8m (based on additions to fixed assets) Exploration / Appraisal Other Development / Producing 193.1m 7.7m 41.0m 80% 3% 17% 06S0128CE00
2005 CAPITAL EXPENDITURE BY COUNTRY TOTAL 2005 CAPEX 241.8m (based on additions to fixed assets) India 195.1m 80.7% Other 1.7m 0.7% Bangladesh Nepal UK 40.5m 3.3m 1.2m 16.7% 1.4% 0.5% 06S0128CE00
2006 FORECAST CAPEX BY TYPE OF SPEND TOTAL 2006 CAPEX 420.0m (based on additions to fixed assets) Exploration / Appraisal Other Development / Producing 151.1m 15.3m 253.6m 36% 4% 60% 06S0128CE00
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