Discovering Hidden Value Preliminary Results Presentation March 2014 Discovering Hidden Value
Simon Thomson Chief Executive Discovering Hidden Value Cairn Preliminary Results Presentation, March 2014 3
Strategic Delivery Vision To create an exploration-led, sustainable, cash-generative oil and gas business which offers shareholders the potential for material capital growth Delivery Commenced a multi-well frontier exploration…
Jann Brown Chief Financial Officer Discovering Hidden Value Cairn Preliminary Results Presentation, March 2014 5
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…
Summary Reviewing opportunities within the current portfolio to optimise the E&A programme beyond 2014 Guided by three core principles: Creating value through exploration within a balanced portfolio Capital discipline…
Dr Mike Watts Deputy Chief Executive Officer Discovering Hidden Value Cairn Preliminary Results Presentation, March 2014 11
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 Operated…
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 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…
Ireland Spanish Point discovery located in the Porcupine Trough Ireland Acreage 2,753 km2 Spanish Point and Burren Discoveries Blackford Dolphin rig undergoing preparation ahead of FEL 4/08 FEL 2/04 UK first appraisal…
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)…
Simon Thomson Chief Executive Discovering Hidden Value Cairn Preliminary Results Presentation, March 2014 22
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…
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