Half-Yearly Results August 2009 Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
AGENDA Introduction Sir Bill Gammell Group Chief Executive, Cairn Energy PLC Group Financial Overview Jann Brown Group Finance Director, Cairn Energy PLC Rajasthan Project Rick Bott Chief Operating Officer, Cairn India Ltd…
Introduction Sir Bill Gammell, Group Chief Executive - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
GROUP OVERVIEW India Focus on delivering material and growing resource base Papua Greenland New Guinea Government of India to inaugurate Rajasthan first oil production Initial Rajasthan pricing agreed Greenland Initial…
Financial Overview Jann Brown, Group Finance Director - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
FINANCE - Overview Key Accounting Numbers * H1 2009 H1 2008 m m Revenue 81 180 Gross Profit 18 109 Impairments / unsuccessful exploration (24) (25) Transaction gains and losses - 359 Net finance (costs) / income (7) 4 (Loss)…
FINANCE - Overview Production (entitlement basis) Realised Prices 15,000 ** H1 2009 H1 2008 Gross production: Oil per bbl () 51.89 114.73 11,573 68,941 boepd Gas per mcf () 3.38 3.74 Per boe () 38.68 71.19 8,853 10,000 Oil…
FINANCE Exceptional Item Ravva PTRR arbitration Impact on Income Statement Government of India instructed buyers to m withhold Ravva revenues Revenue (64) Cash withheld to 30 June 2009 67m Finance costs (32) Full provision…
FINANCE Cash Balances Period end net cash position: CIL PLC / Capricorn Group m m m Cash 1,058 423 1,481 Debt (850) - (850) Net Cash 208 423 631 Additional debt capacity if required 09S0053GH00 Discovering hidden value…
FINANCE Full Year Capex Guidance 2009 India Total 920m 2009 Greenland / elsewhere Total 65m Exploration / Other Development / 4% Exploration / Appraisal Producing Other Appraisal 96% 93% 1% 6% Rajasthan 2009 Development…
FINANCE Summary Balance sheet strengthened by placing Rajasthan cash flows provide platform for future growth Reinvestment opportunities in both Rajasthan and Greenland 09S0053GH00 Discovering hidden value through…
Rajasthan Project Rick Bott, Chief Operating Officer - Cairn India Limited Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
RAJASTHAN - Overview 25 Fields - 3 largest Mangala, Bhagyam and Aishwariya (MBA) under development Combined Upstream / Midstream workforce 16,000 Phased integrated development focused on Mangala Processing Terminal (MPT)…
RAJASTHAN - Building For Growth * Flexibility to cater for Current potential Government future growth * Subject to Current Approved additional Government Production investment and Approved Capacity Government Production…
RAJASTHAN - MBA Production Capacity and Profile MPT four processing trains; with production capacity 205,000 bopd targeted completion 2011 Schematic Further growth in Rajasthan Initial targeted EOR 175,000 bopd plateau…
RAJASTHAN - Realising The Potential Barmer Hill unconventional resources 3D oil and gas migration model Studies: cores analysis ongoing Initial pilot project: Re-entry of Mangala and Aishwariya wells Test stimulation and…
RAJASTHAN - Integrated Development Train 1 facilities and trucking Bhagyam logistics ready Mangala Key elements to enable production Aishwariya now in place MPT Water Safety systems System Intrafield pipelines Separation…
RAJASTHAN - Upstream Construction Train 1 Ready 09S0053GH00 Discovering hidden value through entrepreneurial exploration 19
RAJASTHAN - Upstream Construction 09S0053GH00 Discovering hidden value through entrepreneurial exploration 20
RAJASTHAN - Commercial Production Trucking Government of India to inaugurate production start up August 2009 Insulated tankers Coastal delivery point Small initial volumes Safe and operationally efficient ramp-up…
RAJASTHAN - Pipeline Construction Line pipe laying ongoing 9 construction spreads Panipat currently active in Gujarat and Rajasthan Rajasthan MPT Terminals and related facilities construction Kandla Radhanpur ongoing Mathura…
RAJASTHAN - Pipeline Construction 09S0053GH00 Discovering hidden value through entrepreneurial exploration 23
RAJASTHAN - Crude Sales Highest realised price maximises Government of India (GoI) take and royalty for Government of Rajasthan Commercial terms and pricing negotiations for initial offtake concluded with GoI nominated buyers - IOC…
RAJASTHAN - Concluding Remarks Production due to start August 2009 Initial sales volumes and pricing agreed Trucking ramp up throughout H2 2009 Construction of Train 2 and Pipeline targeted for completion end 2009, Train 3 by H1…
Cairn Group - Future Resource and Value Potential Dr Mike Watts, Group Deputy Chief Executive, Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial…
Group Future Resource and Value Potential - Rajasthan Basin Focus on maximizing Unrisked Prospective value through Prospective Oil and Gas In Place strategic prioritisation Resources Resource STOIIP Contingent of activities…
GREENLAND - Overview Baffin Bay North East Greenland Cairn Blocks Bid Round Bid Round 2012 USGS places Greenland in 2010 Cairn Prospecting Licence Wells the top ten yet to find Disko blocks Baffin Bay Basin hydrocarbon…
GREENLAND - July 2009 East Coast Reconnaissance Seismic East Coast Board visit Field trip Ilulissat 09S0053GH00 Discovering hidden value through entrepreneurial exploration 29
GREENLAND - Ongoing Work Programme Baffin Bay Basin 2008 Disko Seismic survey 2009 Seismic interpretation underway 2012 Licensing Prospects and leads inventory Round CSEM, well site and multi beam surveys Gradiometric gravity and…
BAFFIN BAY BASIN Potential Hydrocarbons Generated Baffin Basin and sub-basins NORWAY Baffin Bay Basin Offshore undrilled Baffin Bay GREENLAND Basin modelling* of the Sigguk Qaarsut kitchen area for the Disko Eqqua…
BAFFIN BAY BASIN Disko Area Activity Cairn (Op) 87.5% Cairn Nunaoil 12.5% GREENLAND Electro magnetic (CSEM) survey 3 well site and multi-beam surveys Baffin Bay Qaarsut Gradiometric gravity and magnetic survey Sigguk GRO-3 1…
BAFFIN BAY BASIN Disko Area Current Prospect and Lead Inventory Area of Unrisked In Place Potential Prospects Maximum Column Water AVO Height Depth / Leads Closure Response (m) (m) (km2) Disko blocks 1 and 3 current 1 275 400*…
WEST GREENLAND BASIN GREENLAND JV Joint Venture Activity (Operator Encana) Sigguk Qaarsut Eqqua Ilulissat Aasiaat 2008 electro magnetic (CSEM) survey results evaluated CANADA West Greenland Basin and Prospect and lead…
SOUTH GREENLAND Cairn Activity Plate Reconstruction South Greenland 2008 survey 30km grid 3,600 km 2D seismic infill GREENLAND programme (PGS) to commence Nuuk September, 2009 Conceptual gas development study completed…
SOUTH GREENLAND - Play Types WNW ESE SW NE Water depths 80m - 2500m+ 2008 2D seismic, 30 km grid spacing Canyon Play Types Rifted fault blocks Transpressional structures Sediment drape Compressional Structure Drape Rotated…
EAST GREENLAND Cairn Activity Plate Reconstruction East Greenland Prospecting licence awarded 4,000 km 2D seismic reconnaissance programme (PGS) underway GREENLAND Shell Norway Discovery May 2009 Industry Activity German…
Concluding Remarks Sir Bill Gammell, Group Chief Executive - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
CONCLUDING REMARKS India Focus on delivering material and growing resource base Government of India to inaugurate Rajasthan first oil production Initial Rajasthan pricing agreed Greenland Initial prospect and lead inventory…
Appendix 09S0053GH00 Discovering hidden value through entrepreneurial exploration Discovering hidden value through entrepreneurial exploration
REST OF GROUP - Mediterranean Tunisia Louza (Capricorn 100%) Exploration well 2010 20 million bbls unrisked prospect ALBANIA Nabeul (Capricorn 50%) JONI-5 Exploration well 2012 30 million bbls unrisked prospect NABEUL…
REST OF GROUP Carbonate Reef Build Up Play in Albania and Papua New Guinea Albania Rovesti Joni-5 Joni-5 prospect Aquila Falco prospect Medusa 3D seismic 2009 Giove Exploration well 2010/11 ITALY Unrisked 130 million…
REST OF GROUP - Iraq Second Bid Round 43 companies qualified for 2nd Round 14 green field projects targeting 40 billion bbls + 17 Tcf of reserves Iraqi Government presenting to 2nd round qualifiers in Istanbul today (Aug 25,…
FINANCE - Cashflow 158m 54m PLC 26m placing Expenditure on Capex Other Exploration 2m / Appraisal 31m CASH IN 238m FX Movement 35m Decrease in Net Cash CASH OUT (540m) 267m Development Expenditure / Producing On 428m…
PRODUCTION 2009 Production (entitlement basis) boepd H1 2009 H1 2008 15,000 Gross field production 68,941 80,873 Entitlement 11,573 13,886 11,573 Prices realised H1 2009 H1 2008 10,000 Oil per bbl () 51.89 114.73 8,853 Gas per…
REVENUE AND GROSS PROFIT Production costs 7.76 (2008: 14.09) per boe (excluding stock movements) 200 180m Workover and infill well expenditure in H1 2008 (revenue) Fixed cost base over lower production in Ravva, CB/OS-2 and Sangu…
CAIRN INDIA BALANCE SHEET - CAPITAL EXPENDITURE Cairn India work programme capex funded 1,000 from: 920m 1% 210m net cash on balance sheet (net of 850m debt drawn) 800 Revolving 850m credit facility (US LIBOR based) 850m…
PLC / CAPRICORN BALANCE SHEET - CAPITAL EXPENDITURE 80 Cash on balance sheet 416m 65m 4% March 2009 placing 161m 60 40 2009 Exploration Forecast Other 6% 96% 20 12m 4% Greenland 96% 60% Mediterranean South Asia 17% 0…
CLEAN NET INCOME H1 2009* H1 2008 m m Post Tax (Loss) / Profit as reported (20) 376 Add back non-recurring (income)/expenditure Foreign currency exchange loss 26 15 Exceptional gain on deemed disposal of subsidiaries - (359)…
INCOME STATEMENT H1 2009 H1 2008 Production (boepd) 11,573 13,886 Average price (/boe) 38.68 71.19 m m Revenue 17.1 180.4 Production costs (16.3) (35.6) Includes exceptional Unsuccessful exploration costs Ravva provision (24.0)…
BALANCE SHEET H1 2009 H1 2008 m m Oil and gas exploration / appraisal assets and 2,062.2 1,419.5 development/producing assets Other non-current assets Exploration 549.2m 18.3 27.8 Development 1,513.0m Total non-current assets…
CASHFLOW STATEMENT H1 2009 H1 2008 m m Net cash (used in) / from operating activities (24.8) 104.9 Oil and gas capital expenditure (459.4) (345.1) Other capital expenditure (1.9) (3.0) Interest received 26.2 27.9 Cash outflow…
H1 2009 CAPITAL EXPENDITURE BY TYPE OF SPEND TOTAL 2009 CAPEX 429m (based on additions to fixed assets) Development / Producing 397m 92% Exploration / Appraisal Other 30m 2m 7% 1% 09S0053GH00 Discovering hidden value…
H1 2009 CAPITAL EXPENDITURE BY BUSINESS TOTAL 2009 CAPEX 429m (based on additions to fixed assets) Cairn India Limited Group 417m 97% Capricorn Oil Limited Group 12m 3% 09S0053GH00 Discovering hidden value through…
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