Discovering Hidden Value Investor Presentation May 2014 Discovering Hidden Value
Strategic Delivery Vision To create an exploration-led, sustainable, cash- generative oil and gas business which offers Create shareholders the potential for material capital Value growth Explore Discover Invest Acquire Delivery…
Cairn India Share Sale Restriction Group reorganisation in 2006 to consolidate the Indian business under Cairn India Limited (CIL) Fully compliant with tax legislation in force at the time, in each relevant jurisdiction, including…
Financial Strategy Impact on business and funding position Proceeds from CIL share sales were not required until late 2015 Net cash at 31 December 2013 1.25bn All 2014 commitments remain fully covered, including the current…
Development Projects Delivery of the Kraken and Catcher developments will create cash flow to last more than a decade Kraken (Cairn 25%) Catcher (Cairn 30%) Project sanctioned Q4 2013 Draft FDP submitted to DECC Booked 2P reserves…
Planned Exploration and Appraisal Expenditure Fully funded to deliver 2014 programme 70m* 2014 E&A drilling programme includes 7 wells, totalling 430m* Total capex for the year including 360m developments 530m Discovering…
Exploration Overview Strategy; finding hidden value through exploration Focus on frontier basin potential and overlooked plays in more mature basins Seek commercial terms appropriate to risk / reward Participate at equity…
Exploration Focus Exploration efforts focussed on three main areas: Frontier Atlantic Margin basins (offshore NW Africa, Ireland, Greenland) Greenland Small Mediterranean portfolio Norway (Spain, Malta) UK Overlooked plays and…
Prospect & Lead Inventory PoCS vs. Gross Unrisked - All Prospects - 14/Mar/2014 70% Pd - ''Drillable/Commercial'' Pm - ''Marginal/Sub-Commercial'' UK Pt - ''More Work Needed'' 60% UK West Kraken (Dual Target) 2014 Exploration…
2014 Drilling Programme 2014 Cajun Express Morocco Senegal Senegal Alternative (Op) (Op) (Op) Location Cap Deepwater Shelf Options Juby Fan Prospect Blackford Dolphin UK Ireland Aragon (Op) (Non-Op) Non…
Morocco FD-1 Foum Draa FD-1 Exploration Well plugged and abandoned Well did not prove reservoir, but demonstrated Foum Draa Acreage working thermogenic source rock 3,337 km2 Juby Maritime Acreage Examining further play concepts…
Senegal Proven hydrocarbon system Tiof Substantial acreage position Chinguetti Banda Tevet 7,490 km Mauritania (equivalent to 33 UK North Sea blocks) Mauritania Faucon Shell 2,050 km 3D seismic survey 1977 Conjugate Margin…
Senegal Senegal Petroleum system confirmed by association of faults, Acreage 7,490 km2 Rufisque Wells (1968-72, Esso) Spain DHIs, seabed pock marks and surface seeps plus oil shows Rufisque Senegal Morocco in Rufisque…
UK North Sea and Norwegian Continental Shelf Development Projects Kraken (25% WI), Catcher (30% WI) Kakelborg 33/5 & PL748 Skarfjell (Cairn 20% non-operator) discovered resource Tybalt 211/8c 33/6b 34/2 & 34/5 Alopecosa NORWAY…
Greater Skarfjell Increased prospective acreage position at 20% Cairn current licence position PL682 Alecaposa equity Dione 35/9b Tegenaria Rhea PL747 Skarfjell successfully delineated and the partners 35/8 are now…
Norway APA 2013 Awards All three applications as non-operator awarded PL758 (East of Klara) PL758 Capricorn 35% EnQuest (Op) 35% Skagen 44 30% PL748 (West of Knarr Field Development) PL748 Capricorn 20% Det Norske 40% (Op)…
Goals for 2014 and Beyond Focus on resolution of Indian Tax situation Delivery of exploration drilling programme Progress of core development projects Continued strategy of balanced portfolio Optimising capital allocation to…
APPENDIX Discovering Hidden Value Investor Presentation, May 2014 19
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, May 2014 20
Current Assets and Investments Ireland Spanish Point and Burren FEL 2/04 36 licences held in the UK and FEL 4/08 and FEL 1/14 Norwegian sectors of the North Sea including: Norway UK Skarfjell Kraken 9/2b 35/8 & 35/9 Catcher…
Partnerships Past and Present India ONGC Petrocon Ravva Oil (Marubeni) Morocco TATA ENI ONHYM Shell Genel San Leon Energy Bangladesh Serica Energy Santos International Longreach Oil Holdings Pty Ltd and Gas HBR Energy Kosmos…
Management Simon Thomson James Smith Chief Executive Finance Director Simon Thomson joined Cairn in 1995 as a lawyer. He was appointed as Chief Executive in July 2011 having James is the Finance Director at Cairn Energy with…
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