Discovering Hidden Value Investor Presentation June 2013 Discovering Hidden Value
Creating Value Through Exploration Led Growth Experienced exploration and production (E&P) operator FTSE 250 London listed Company (CNE) post 4.5billion sale of majority stake in Create Indian business Value Business model Explore…
Creating Value Through Exploration Led Growth Significant gearing to exploration success Atlantic Margin, Mediterranean, North Sea; Exploration 250-300 million exploration spend per annum led growth 4 frontier wells in 2013 /…
Balance Sheet Strength Finance Strong balance sheet Financial Assets Cash Financial assets in excess of 2.5bn* 1.5bn* (60%) 1.5bn* net cash CIL Stake 1.0bn* Retained Cairn India Limited (CIL) stake (40%) of 10% valued at…
Capital Allocation Finance 2012 Capex Outflows Funding allocated to maximise potential Exploration* shareholder value over the long term 65m (81%) Up to 1.5bn over five years allocated to our development assets 15m Debt…
Exploration Led Growth Strategy Asset base Ireland Norway Frontier basin exploration: UK West Greenland Spain Multiple emerging play types South Greenland along the Atlantic Margin and Mediterranean basin India Mature basin…
Geological Focus Atlantic Margin Play fairway analysis associated with continental break-up Norway UK Ireland West Greenland Spain South Greenland India Plate reconstruction (PLATES/UTIG, 2009) Morocco Senegal…
Current Snapshot of Prospect Inventory PoCS vs. Gross Unrisked - All Prospects - Current Bubble Size 70% 61 Prospects Proportional to (plus 124 prospects and leads still Net To Cairn being worked on but not shown) Risked…
Morocco Frontier Exploration Atlantic Margin Nova Scotia Offshore Activity Morocco and Nova Scotia frontier Shell, BP, Chevron, conjugate margins Exxon, and EnCana Schematic Plate Reconstruction - After Luheshi 2012 Extensive…
Morocco Foum Draa Atlantic Margin Foum Draa Offshore 1-3 3 deepwater wells shallower than L.Cret TDs Spain Shell (2) and Vanco, drilled 2004 Extensive historic dataset including 3D seismic Several deepwater prospects identified…
Morocco Juby Maritime Atlantic Margin Juby Maritime I-III Canary Islands Juby Maritime I - III New Cap Juby discovery (Esso 1968/1969) Tan Tan-1 3D seismic Acquired (MO-002 well tested 2,377 bopd 12 API oil Q4 2012 from Upper…
Senegal Frontier Exploration Atlantic Margin Frontier Atlantic Margin basin Tiof Banda Chinguetti Proven hydrocarbon system Tevet Substantial acreage position Mauritania Mauritania Faucon 7,490 km Shell Conjugate Margin…
Senegal Frontier Exploration Atlantic Margin Mesozoic Petroleum system established offshore by Rufisque Dome wells Shelf No deepwater wells offshore Senegal north of Gambia Main source rocks; World class Turonian source rock…
Ireland Exploration and Appraisal Cairn has farmed-in as Operator * (38%) to two licences (1,241 km2) and one licensing option (1,512 km2) offshore West of Ireland Frontier Exploration Licence (FEL) 2/04 covering blocks 35/8 and…
Greenland Frontier Exploration Atlantic Margin First phase exploration completed: Extensive knowledge, database and operating capability Primary area North East Bid Rounds 2D seismic 85,000 km of focus Pitu 3 and 4 2 x 3D seismic…
Baffin Bay - Pitu Block Regional Location Atlantic Margin Industry boreholes Pitu is ideally situated Melville Melville Bay Bay Basin Hydrocarbon charge from both the Ridge Melville Bay Basin and the southern Northern Kivioq…
Greenland Frontier Exploration Atlantic Margin Play types Industry consortium shallow borehole programme in 2012 operated by Shell established for the first time: Much of the Baffin Bay Basin stratigraphy Presence of good oil prone…
Pitu - Geochemical Surveys (2011 and 2012) Atlantic Margin 2011 Geochemical Survey Results highlighted microbial anomalies Sea bed indicative of oil in the 3D area anomalies with oil signatures 2012 Geochemical Survey Results…
Pitu - 5 Prospects Highlighted by 3D Seismic Atlantic Margin Prospects defined Py 3 composite AT prospect N prospect by 3D prospect (Tertiary) (Cretaceous) Py composite prospect An (AT, N and Ak) Combined gross unrisked mean…
Mediterranean Spain France Frontier contract terms (100% interest) Nordeste Valencia Basin Barcelona Licence Spain Applications 3D seismic planned 2013 Drilling targeted for 2014/2015 subject to necessary AM1 AM2 approvals…
Exploration, Appraisal and Pre-Development UK and Norway North Sea Kakelborg 33/5 & 33/6b Tybalt Active new business programme to 211/8c & 211/13c Timon Huggorm 35/9b 33/9 expand and replenish portfolio with 211/11b & 21/16b…
Appraisal and Operated Exploration UK and Norway S Discovery well 35/9-7 Appraisal well 35/9-8 N Skarfjell revised gross resource Skarfjell (Cairn 20% non operator) range to between 74 mmbbls (92mmboe) to Skarfjell discovered…
Development Projects UK and Norway Kraken Kraken Appraisal North / Head Location Appraisal 2013 North Sea assets balance global portfolio and provide future cash 9/1a Cairn 100% 9/2b Cairn 25% flow to fund exploration in…
Cairn India CIL, with strategic focus on value growth in India, listed on the Bombay Stock exchange in 2007: Rajasthan Current market cap 10 billion INDIA CB/OS-2 Cairn Energy PLC holds 10% interest Ravva Current operated…
Conclusion Create Value Re-geared structure for maximum exposure to organic growth potential Targeting multi-well drilling programme in Create the coming 18 months Value Explore Discover Invest Acquire Add Value Portfolio…
Appendix Discovering Hidden Value Investor Presentation, June 2013 28
Business Model for Growth and Re-gearing Realise Value Realise Value Return Value to Shareholders Create Value Create Value Create Value Discovering Hidden Value Investor Presentation, June 2013 29
Current Assets and Investments Ireland Spanish Point and Burren FEL 2/04 36 licences held in the UK and FEL 4/08 and LO 11/2 Norwegian sectors of the North Sea including: Norway UK Skarfjell Kraken 9/2b 35/8 & 35/9 Catcher 28/9…
Partnerships Past and Present North Sea India Premier ONGC Petrocon Wintershall Ravva Oil (Marubeni) EnQuest TATA Talisman ENI Shell Morocco Bangladesh ONHYM Santos International Genel Holdings Pty Ltd San Leon Energy HBR…
Management Simon Thomson Mike Watts Chief Executive Deputy Chief Executive Dr Mike Watts is Deputy Chief Executive and has more than 33 Simon Thomson joined Cairn in 1995 as a lawyer. He was appointed years experience in the oil…
Management Richard Heaton Paul Mayland Director of Exploration Chief Operating Officer After graduating from Leeds and Durham universities in the UK, Paul holds a B.Eng (1st Class) Engineering and M.Eng in Petroleum Richard began…
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