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MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc

Cairn Energy Plc · Mar 10, 2010 · 40 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 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 1
    Preliminary Results March 2010 Discovering hidden value Discovering hidden value
  2. MARCH 2010 CORPORATE PRESENTATION – 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 Rajasthan Project Rick Bott Chief Operating Officer, Cairn India Ltd…
  3. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 3
    Introduction Sir Bill Gammell, Group Chief Executive - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value
  4. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 4
    GROUP OVERVIEW Focus on delivery of phased development in Rajasthan to provide substantial and sustained cash flows Rajasthan resource base continues to grow Strategic exploration positions in frontier basins of Greenland Strong…
  5. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 5
    Financial Overview Jann Brown, Group Finance Director - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value
  6. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 6
    FINANCE Operational financial flexibility Actions throughout 2009 have strengthened the balance sheet 5% PLC placing in March 1.6 billion CIL loan facilities signed in October Deals with Petronas in October and Dyas in November…
  7. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 7
    FINANCE Production And Realised Prices Annualised production Gross Rajasthan production (entitlement basis) 15,000 13,803 Gross (boepd) production: 68,715 boepd From first oil to December 2009 12,938 11,742 Current production levels…
  8. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 8
    FINANCE Assets Revenue Asset operating profit * 350 350 299m 288m 300 Rajasthan 300 252m 234m 228m 250 250 CB/OS-2 200 60m 200 169m 'm 'm 150 150 36m Ravva 100 100 50 Sangu 50 0 0 2007 2008 2009 2007 2008 2009…
  9. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 9
    FINANCE Exceptional Items 2009 2009 2009 2008 Pre-exceptional Exceptional Reported Reported m m m m Revenue 234 (64)1 170 299 Net admin / impairment costs (80) (151)2 (231) (94) Gains on disposal - 2003 200 356 Net finance income…
  10. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 10
    FINANCE Cashflow Net Cash Movement 1,200 162 1,000 898 -51 800 -128 600 'm 404 500 400 200 -785 0 2008 net cash and Pre-tax operating Tax paid Exploration capex Development Financing and 2009 net cash and bank…
  11. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 11
    FINANCE 2010 Capital Budget 2010 Group capital budget Production and 64% development 1,525m 36% Exploration 2010 CIL capital budget 2010 Capricorn capital budget Greenland Rajasthan Drilling and Development 1,075m 450m…
  12. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 12
    FINANCE Funded For Growth Strong balance sheet and funding in place to: Complete the Rajasthan MBA development Carry out a high impact drilling campaign in Greenland Drill in Tunisia Rajasthan asset provides platform for future…
  13. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 13
    Rajasthan Project Rick Bott, Chief Operating Officer - Cairn India Limited Discovering hidden value through entrepreneurial exploration Discovering hidden value
  14. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 14
    RAJASTHAN Drilling 4 rigs operating, 50 Mangala wells drilled, 38 wells completed (current production 20,000 bopd) Wells confirm excellent reservoir quality Horizontal wells tested 12,000 bopd Development Capacity bopd status…
  15. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 15
    RAJASTHAN Sales And Infrastructure Sales arrangements in place for 143,000 bopd 600 km Cairn Mangala MRPL, IOC , Essar and Reliance Industries pipeline Discussions ongoing with other refiners from Mangala Trucking to Salaya Route…
  16. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 16
    RAJASTHAN Mangala 2010 Production Key Enablers 150,000 bopd 143,000 bopd Current Sales 125,000 bopd Arrangement Technical and Development drilling and reservoir performance Operational confirms deliverability JV…
  17. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 17
    RAJASTHAN Vision For Growth Mangala Processing Terminal Reservoir Performance Target Technical & EOR Pilot Implementation MBA Operational BH Pilots and Development FDP Exploration and Appraisal Approved Production Potential…
  18. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 18
    RAJASTHAN Enhanced Oil Recovery (EOR) Field Trials Underway Potential resource 300 million bbls (recoverable) Potential to extend and enhance MBA plateau and reduce per unit costs 10 well pilot programme on Mangala field underway…
  19. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 19
    RAJASTHAN Barmer Hill Potential Barmer Hill and other fields STOIIP- 1.9 billion boe Barmer Hill analogous fields recovery factors - 7 to 20% Discovered Resource: 50 to 400 mmboe recoverable most likely recovery 140 mmboe Discovery…
  20. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 20
    RAJASTHAN Exploration Portfolio Portfolio Growth Risked portfolio grown from 35 to 250mmboe, with significant upside Total Acreage 3,111 km2 potential Oil (75%): Gas (25%) Detailed Block Re-evaluation Major update on understanding…
  21. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 21
    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
  22. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 22
    RAJASTHAN Resource Base 6.5 Billion boe 250 Gross Gross Reserves, Initial 2.5 Billion boe in 35+ prospects Most Likely Resources 1 and 140 Potential 2 Prospective Risked Prospective In Place In Place Resource 4 Billion…
  23. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 23
    GREENLAND In Context Cairn Blocks Cairn Prospecting Licence USGS highlights Baffin Bay North East Wells the large scale Bid Round Bid Round 2010 2012 hydrocarbon potential Baffin Bay bid round: Bids May 1 2010, Awards…
  24. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 24
    GREENLAND Cairn and its partner PETRONAS along with Nunaoil have an early entrant advantage in two strategic Cairn operated positions in separate frontier Baffin Bay Basin basins 1,500 km apart Qaarsut Cairn is planning a…
  25. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 25
    GREENLAND West Disko Exploration Elements Summary Source Rock Potential Oil seeps onshore Presence of thick and Sigguk Burnt cliffs onshore continuous source rocks offshore unknown Satellite slicks offshore (Main risk) GRO-3…
  26. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 26
    GREENLAND West Disko 2009 Survey Results Anomaly 2009 3D Gradiometric Gravity Survey CSEM Source: ARKeX Several CSEM anomalies have been found 2010 well(s) to target such anomalies Wells in the 2010 drilling programme Drop…
  27. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 27
    GREENLAND West Disko 2010 Operations Stena Forth 6th Generation Two state of the art rigs DP Drillship Technically, relatively simple drilling Logistics are complex but manageable Timely delivery of regulatory Stena Don…
  28. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 28
    GREENLAND West Disko 2010 Exploration Programme Greenland 4 exploration wells and 2,500 km 2D seismic Sigguk 30 Prospects and leads identified to date GRO-3 Eqqua Prospect risk - chance of success estimated 7-14% Disko 4…
  29. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 29
    GREENLAND West Disko - A Sense Of Perspective West Disko acreage equivalent to 3 UK North Sea SIGGUK Quadrants 11,033 km2 Zero wells 1300 wells EQQUA 11,991 km2 30 leads and prospects 170 currently Discoveries…
  30. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 30
    GREENLAND South Greenland 2010 / 2011 Work Programme 2010 Programme 2011 Programme 5,000 km of infill seismic 3 or 4 exploration wells (subject to Government of Greenland approvals) 5 site surveys Bathymetry Greenland…
  31. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 31
    GREENLAND South Greenland SW 30km NE Nuuk Plate Reconstruction Play Types GREENLAND Rifted fault blocks Transpressional structures Chevron SW 30km NE Qaqortoq Sediment drape Husky Slope and basin floor fans Vulcan…
  32. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 32
    Concluding Remarks Sir Bill Gammell, Group Chief Executive - Cairn Energy PLC Discovering hidden value through entrepreneurial exploration Discovering hidden value
  33. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 33
    CONCLUDING REMARKS India Cairn focus on phased development of Rajasthan resources to optimise value Rajasthan target potential production of 240,000 bopd Greenland Multi-billion barrel unrisked exploration potential in two separate…
  34. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 34
    Appendix 35 Preliminary Results March 2010 Discovering hidden value through entrepreneurial exploration Discovering hidden value
  35. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 35
    APPENDIX Annual Production 15,000 boepd 2009 2008 13,803 Gross production: Annual gross field production 68,715 76,298 68,715 boepd Annual entitlement 11,742 13,803 12,801 production 10,000 Rajasthan Prices realised 2009 2008…
  36. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 36
    APPENDIX Revenue and Gross Profit Production costs 12.31 (2008: 11.22) per boe 299m (exc stock movements and pre-award costs) (revenue) 300 Rajasthan opex via trucking increases average cost per boe 67m 234m Ravva and CB-OS/2…
  37. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 37
    FINANCE Cash And Cash Equivalents Cairn India PLC / Capricorn Group m m m Cash 594 596 1,190 Debt (690)* - (690) * Net (debt)/cash (96) 596 500 PLC/Capricorn - 64m received from Petronas in February 2010 Cairn India -…
  38. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 38
    APPENDIX Income Statement Before Exceptional Items 2009 2008 m m Revenue 233.9 299.3 Includes 22m stock Production costs movement credit and (62.4) (66.9) Unsuccessful exploration costs pre-award costs of 22m (57.4) (47.7)…
  39. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 39
    APPENDIX Balance Sheet 2009 2008 m m Oil and gas exploration / appraisal assets and Exploration - 376m 2204.8 1,682.6 development/producing assets Development - 1,829m Other non-current assets 79.8 21.2 Includes 63m of goodwill…
  40. MARCH 2010 CORPORATE PRESENTATION – Cairn Energy Plc – slide 40
    APPENDIX Cashflow Statement 2009 2008 m m Net cash generated from operating activities 110.9 150.4 Exploration 128.1m Oil and gas capital expenditure Development 785.0m (913.1) (618.9) Other capital expenditure (9.5) (6.9) Net…

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