CAIRN ENERGY PLC PRELIMINARY RESULTS PRESENTATION March 2007 07S0080CE00 07S0080CE00
AGENDA Overview Sir Bill Gammell Cairn India Rahul Dhir Capricorn Mike Watts Financials Jann Brown Summary Sir Bill Gammell 07S0080CE00
CORPORATE OVERVIEW IPO Cairn India completed on schedule Delivery on strategy of value creation and realisation New management team to carry Indian business forward 07S0080CE00 3
CAIRN OVERVIEW n illio PLC Shareholders m rn 40 t u IPO January 2007 9 h re 007 Cash return 3 per share as 2 2 C Q New Investors Cairn Energy PLC 1.98 billion LSE nce 31 % bala 69 % 10 0% 300 million available s h Ca…
OPERATIONAL OVERVIEW Rajasthan midstream resolution progressing well - alignment with ONGC on pipeline evacuation, subject to Government of India approval Rajasthan 3.6 bn bbls STOIIP EOR potential for recovery increase and…
FINANCIAL OVERVIEW Well placed financially with: Strong balance sheet; cash retained on IPO Positive operating cash flows 850 million facility in place for Rajasthan development Investment programme fully funded…
AGENDA Overview Sir Bill Gammell Cairn India Rahul Dhir, Chief Executive Cairn India Capricorn Mike Watts Financials Jann Brown Summary Sir Bill Gammell 07S0080CE00
CAIRN INDIA OVERVIEW Cairn India Shareholding: Cairn Energy PLC Gross 69% production target 150,000 bopd RJ-ON-90/1 Retail Petronas 4% Institutional 10% 17% 15 Blocks in India including 2 recently awarded CB/OS-2 NELP VI…
RAJASTHAN OVERVIEW Development Status FDPs approved or pending on 6 of 20 discoveries Civil works underway ahead of main construction Mangala development drilling scheduled to commence 2008 Midstream Update Rajasthan midstream…
RAJASTHAN DEVELOPMENT PROJECT World class oil discoveries in Rajasthan BHAGYAM RAJASTHAN SHAKTI - First oil scheduled 2009 SHAKTI NE BLOCK RJ-ON-90/1 MARCH 2007 N-I N-I-NORTH 2nd N-C-WEST 140 wells drilled, Development Area…
RAJASTHAN PROJECT SCHEDULE 2005 2006 2007 2008 2009 Pre-Construction Approvals Central Ground Water Authority (CGWA) Environmental Clearance (EC) Field Development Plan (FDP) Defence Clearance (DC) Consent To Establish…
UPSTREAM DEVELOPMENT Estimated cost SHAKTI AISHWARIYA Bhagyam costs relate to additional Capex Full Field Development N-I US 0.25 billion + 40% to -20% STOIIP, higher production profiles and use of FEED cost data BHAGYAM Capex…
MIDSTREAM - Current Status Bhatinda Rajasthan midstream resolution progressing Panipat well - alignment with ONGC on pipeline evacuation, subject to Government of India DELHI approval Mathura Rajasthan Proposed routing…
CAIRN INDIA - World Class Resource Base Exploration Potential 12 Exploration blocks 4.5 1.4 bn boe 3.1 2.2 0.9 Ravva, Cambay & KG-DWN* Rajasthan Field GHIIP Rajasthan Contingent GHIIP GHIIP + CR Note :GHIIP:…
CAIRN INDIA - Sustainable Growth Potential from EOR & Technology Successful application of Polymer and ASP is expected to result in: 12 60 Increased oil recovery Plateau period (Years) Recovery Factor (%) 10 55 Extension of…
CAIRN INDIA - Strong Production Growth Net (WI) Projected Production 115,000 Maximise and sustain production from current operational assets boepd ase Execute main Rajasthan developments i n cre 93% Optimise further…
CAIRN INDIA RECENT & FORTHCOMING EXPLORATION ACTIVITY VN-ONN-2003/1 GV-ONN-97/1 GV-ONN-2003/1 RJ-ON-90/1 2D seismic Drilled Tisua-1 & 2D seismic end 2007 Rajasthan expected in 2008 entered Phase III to early 2008 5 further wells…
CAIRN INDIA SUMMARY Well placed for future growth Planned five fold production increase by 2010 Ongoing strong cash flow from current operations in Ravva & Cambay Basin Strong resource base EOR potential for recovery increase…
AGENDA Overview Sir Bill Gammell Cairn India Rahul Dhir Capricorn Mike Watts Financials Jann Brown Summary Sir Bill Gammell 07S0080CE00
CAIRN / CAPRICORN OVERVIEW 100% Cairn Energy PLC Capricorn Energy 69% Capricorn Assets: Cairn India Sangu Nepal & Northern India Bangladesh Frontier Exploration Exploration Cash 300 million Division of specific…
CURRENT BANGLADESH OPERATIONS Decline analysis indicates ultimate recovery from existing SANGU-2 wells is lower than year-end P50 case by 69 Bcf Review of field compression indicates project now marginal and associated reserves…
HIMALAYAN FORELAND BASIN Nepal with one exploration well is a true Frontier Province NEPAL BLOCKS 1,2,3,4,5,6 & 7 Equity : Cairn 100% Oil and Gas seeps indicate active petroleum systems Cairn first reconnaissance and detailed…
AGENDA Overview Sir Bill Gammell Cairn India Rahul Dhir Capricorn Mike Watts Financials Jann Brown Summary Sir Bill Gammell 07S0080CE00
FINANCIAL OVERVIEW Strong balance sheet; cash retained on IPO Positive operating cash flows 850 million development facility Investment programme fully funded 07S0080CE00 21
PRODUCTION 25,000 24,523 boepd 2006 2005 Gross field production 105,028 105,774 Oil Entitlement 24,523 28,240 26.7% 20,000 Prices realised 2006 2005 15,000 14,592 Oil per bbl () 66.32 54.18 Gas per mcf () 3.19 3.14 Per…
REVENUE AND GROSS PROFIT 286m 300 (revenue) Production Cost of 6.36 per bbl* 263m (revenue) 57m 250 DD & A rate 11.56 per bbl 50m 200 27m Unsuccessful exploration 62m 62m 150 92m 103m 100 Production costs Unsuccessful…
KEY ACCOUNTING ITEMS 2006 2006 Total Exceptional m continues m m Gross Profit 64 64 Admin 1 (57) (57) Exceptional (Sangu impairment) (71) (71) Exchange loss (inter company) (13) (13) Finance Costs (13) (13) Tax 21 (13) 8 Loss…
BALANCE SHEET CAPITAL EXPENDITURE 700 2006 investment funded by operating 650m cash flow 207m (2005: 140m) 3% 600 2007 step up in group expenditure 500 Cairn India future capex funded from 76% 400 600m IPO proceeds retained…
IMPACT OF IPO Process completed in under 10 months Pre IPO placing of 752 m 1.98 bn raised in total Indias largest IPO to date Cash retained in business 600m in Cairn India 300m available to Capricorn Return to…
IMPACT OF IPO IPO Accounting in 2007 Expected gain on disposal - 1.1 bn Minority interest adjustments in income statement and balance sheet Share consolidation to 130.4 m shares (from 160.4 m) 3 per share return of cash to…
AGENDA Overview Sir Bill Gammell Cairn India Rahul Dhir Capricorn Mike Watts Financials Jann Brown Summary Sir Bill Gammell 07S0080CE00
SUMMARY IPO completed on schedule - new Indian management team in place Rajasthan midstream resolution progressing well - alignment with ONGC on pipeline evacuation, subject to Government of India approval First Oil from Mangala…
CAMBAY BASIN - CB/OS-2 CB/OS-2 Oil & Gas Production (000 boepd) 30 Fast track development - Lakshmi : 25 3.8 Discovery to Gas export in 28 months 20 Highly efficient operations 0.6 15 21 Near term oil opportunities 18.2 10…
REPORTING TIMETABLE UK INDIA 2007 Q1 2006 full year results Q2 AGM 2007 Q1 results Q3 2007 half year results 2007 half year results AGM Q4 2007 Q3 results 2008 Q1 Trading update Trading update 2007 full year results…
INCOME STATEMENT (IFRS) 2006 2005 Production (boepd) 24,523 28,240 Average price (/boe) 31.84 25.44 m m Revenue 286.3 262.6 Production costs (56.9) (50.2) Includes Farm out of Unsuccessful exploration costs expenditure on…
BALANCE SHEET 2006 2005 m m Oil and gas exploration / appraisal assets and 813.2 778.8 development/producing assets Exploration 419.2m Other non-current assets Development 394.0m 31.7 9.4 Total non-current assets 844.9 788.2…
CASHFLOW 207.2m 728.6m t st ss en c o le m op O ds ce In ting er flo IP cee pla a w act o e- s fro iv pr Pr m itie O IP s Other Development 9.1m / Producing 115m CASH IN 935.8m…
CASH FLOW STATEMENT 2006 2005 m m Cash generated from operations 207.2 139.6 Interest paid (5.6) (1.2) Tax paid (12.2) (6.6) Net cash generated from operating activities 189.4 131.8 Oil and gas capital expenditure (272.5)…
2006 CAPITAL EXPENDITURE BY TYPE OF SPEND TOTAL 2006 CAPEX 284m (based on additions to fixed assets) Exploration / Appraisal Other Development / Producing 161m 12.5m 110.5m 57% 4% 39% 07S0080CE00 37
2006 CAPITAL EXPENDITURE BY COUNTRY TOTAL 2006 CAPEX 284m (based on additions to fixed assets) Capricorn Energy Limited Group Cairn India Limited Group 31.6m 249.7m 11% 84% Other 2.7m 1% 07S0080CE00 38
Loading...
