PRELIMINARY RESULTS PRESENTATION Cairn Energy PLC 10th March 2020
DISCLAIMER These materials contain forward-looking statements regarding Cairn, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are…
Introduction SIMON THOMSON
Introduction Strategic Execution Strong production performance Operational Final Investment Decision (FID) on Senegal development Reserve additions from Senegal, Kraken and Catcher Delivery Mexico exploration success with ENI…
Introduction Executing Strategy Responsibly ESG Our Approach RESPECT RELATIONSHIPS RESPONSIBILITY RESILIENCE BEHAVING BEHAVING BEHAVING RESPONSIBLY RESPONSIBLE RESPONSIBLY RESPONSIBLY TOWARDS THE GOVERNANCE TO PEOPLE TO SOCIETY…
Introduction Resilient Portfolio in Energy Transition Cairn will target only those resources capable of playing a part in the future global energy mix, when hydrocarbon demand is expected to be materially lower Capital allocation always…
Finance JAMES SMITH
Finance Financial Overview 2019 Results 2020 Guidance Net oil production 23,000 bopd*, at Net Production: 19,000 to 23,000 bopd upper end of guidance (2018: 17,500 Average production cost: bopd)…
Finance Financial Overview Funding Position Cash at 31 December 2019: 147m 108m proceeds from Norway disposal received Q1 2020 575m RBL remains undrawn Senegal Sangomar Phase 1 development sanctioned, work underway to expand…
Finance FY 2019 Cashflow Full year capex 263m (215m net of Norway tax and Nova reimbursement)* Includes 21m of capex Reimbursed on completion of Nova disposal 373m after adjusting for opening and closing receivables…
Finance 2020 Capital Expenditure Full Year Guidance UK Catcher Kraken Production 35m 30m 65m Further Varadero production well, Catcher Worcester satellite North and Laverda satellite developments development Senegal - Sangomar…
Finance Senegal Senegal Fiscal Terms Sangomar Production Gov. Share 0 50,000 bopd 15% Senegal direct participation via Petrosen 50,000 100,000 bopd 20% 75% cost recovery limit 100,000 150,000 bopd 25% Sliding scale of government…
Production & Development PAUL MAYLAND
Production & Development UK Production Net oil production 23,000 bopd, at upper end of guidance (2018: 17,500 bopd) Focus on maximising production from both fields through FPSOs and maturing new opportunities Continue to look…
Production & Development Catcher Cumulative production 40 mmbbls Laverda Production efficiency 90% and generally 95% Catcher 2020 drilling will deliver 3 new production North wells VP1 Water-cut is below FDP expectations,…
Production & Development Kraken Cumulative production 25 mmbbls with Kraken significant remaining potential Head 9/02b-6 Production efficiency 85% in H2 2019 and continuing to improve Western Flank 2020 will deliver two new…
Production & Development Senegal Delivered Sangomar FID From discovery to development Farm-in with FAR JV submit 3 year Evaluation Report and JV and Government sign for 65% operated Evaluation Plan Exploitation Plan submitted Final…
Production & Development Senegal First Oil Development Phase 1 FID VLCC for FPSO Conversion Sangomar Field Development 25-year Government of Senegal Exploitation Authorisation Targeting 2P recoverable oil reserves of 231 mmbbls…
Exploration ERIC HATHON
Exploration Active Exploration Portfolio Strict fiscal discipline Norway Sale Nicaragua Exit Ireland Exit Build and high grade a portfolio of material prospects Material frontier play potential Mauritania entry UK North Sea JV…
Exploration Mexico Drilling Programme Multiple prospect campaign in an emerging basin Cairn Operated Block 10 Cairn Non-Operated Block 9 Four blocks, two operated and two non-operated Block 7 Ehecatl-1 Drilling fourth well in a six…
Exploration Mexico Completed Wells Saasken-1 Discovery Block 10 Gulf of Block 10 (Cairn 15%1, ENI 65% Mexico Block 9 Operator and Lukoil 20%) Oil discovery in high porosity Upper Block 10 Miocene to Lower Pliocene turbidite…
Exploration Mexico Completed Wells Alom-1 Bitol-1 Spud Q4 2019 Spud Q4 2019 Drilled to 2,288m vertical depth, 114m WD Drilled to 5,339m vertical depth, 162m WD No HSE incidents No HSE incidents Objective: Pleistocene shallow marine…
Exploration UK North Sea South of Nelson Swap Infrastructure-led Exploration (ILX) Nelson P2380 Platform Jaws Cross-assigned interest with Shell in vicinity of Nelson platform, 50:50 P2379 Woodstock P2379 - Cairn 100% WI P2380 -…
Exploration West Africa Mauritania Block C-7 Cairn Non-Operated Emerging Basin Exercised option to enter block C-7* Immature (w/discovery) Cairn 40%, Total 50% (Operator), SMH 10% Frontier Basin Potential high impact turbidite sand…
Exploration Suriname Block 61 Cairn 100% Cairn Operated Other Blocks Discoveries Largest block at 13,000 km Oil & Gas Oil 150 km offshore, water depth 60-1,100 m Gas Under-explored, multiple plays to target Good operating…
Exploration Forward Plan Exploration Active drilling programme in Mexico Multi-well ILX drilling plan for UK North Sea Entry into high impact play in Mauritania Maturing evaluations in key Frontier plays Acquiring 2D seismic…
Conclusion SIMON THOMSON
Conclusion Strategic Delivery From a Resilient Portfolio Balanced business model generating sustainable free cash flow Fiscal discipline and financial flexibility Active portfolio management and capital allocation Variable…
Contacts David Nisbet Paula Pratt Group Corporate Affairs Investor Relations Coordinator david.nisbetcairnenergy.com paula.prattcairnenergy.com +44 (0)7711 146 068 +44 (0)131 475 3094 www.cairnenergy.com
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