Cairn Energy has reported on its operational and financial results for the quarter ended June 30, 2008.
- Group booked entitlement reserves increased 41% from 170 mmbbls to 240 mmbbls.
- Gross operated production for H1 2008: 80,873 boepd (H1 2007: 92,173 boepd).
- Average net entitlement production for H1 2008: 13,886 boepd (H1 2007: 22,486 boepd).
- Revised FDP for Mangala submitted to Operating Committee:
- 30% increase in the expected ultimate recovery over previous estimates at approximately 478 mmbbls (a recovery factor of more than 37% of 2P STOIIP).
- Plateau production rate of 125,000 bopd, 25% increase over FDP estimates.
- Rajasthan upstream development underway and on track for first commercial production H2 2009.
- Construction of the export crude oil insulated pipeline, gas pipeline and associated facilities from Barmer, Rajasthan to the Gujarat coast is underway.
- Appraisal, exploration and development drilling in H2 2008 in Rajasthan and elsewhere in India.
- Greenland blocks acquired and exploration programme commenced.
- Acquisition of ~10,000 km 2D seismic programme underway.
- First exploration well in Tunisia scheduled for Q4 2008 / Q1 2009.
- Profit after tax of $375.3m including $358.7m exceptional gain on 4% placement in shares in Cairn India (H1 2007 restated: $1,518.3m including $1,539.5m exceptional gain on IPO of Cairn India).
- Cash generated from operations $104.9m (H1 2007: $74.8m ).
- Group net cash, including bank deposits, at June 30, 2008 of $1,176.6m (H1 2007 restated: $861.0m).
Chief Executive Sir Bill Gammell said, "The group has the ability to deliver material growth in the two arms of its business. Cairn India is on track to deliver crude oil from Rajasthan in the second half of 2009 and significant progress has been made towards optimising and sustaining plateau production levels in this core asset. Seismic acquisition has commenced in Capricorn's Greenland acreage where Cairn believes there is transformational exploration potential."