Cairn Energy: Early Entrant in Frontier Acreage in Greenland


  • Rajasthan development on track to ramp up production to 125,000 bopd in H2 2010
  • Further potential in Rajasthan to take production to 240,000 bopd
  • Greenland four well frontier exploration program to commence 2010
  • Well funded with financial flexibility for operations


  • Group booked entitlement reserves: 253.9 mmboe (2008: 254.5 mmboe)
  • Gross operated production: 77,222* boepd (2008: 76,298 boepd)
  • Average net entitlement production: 20,307* boepd (2008: 12,801 boepd)

*includes Rajasthan boepd production for 125 days India

Rajasthan Resource Base 

  • Discovered in place resource increased from 3.7 billion boe to 4 billion boe
  • Exploration potential increased; Prospective in place resource estimated 2.5 billion boe
  • Block total potential in place resource now 6.5 billion boe
  • Resource base provides potential to produce 240,000 bopd

Rajasthan Development 

  • Processing Train One complete and currently producing ~20,000 bopd
  • Trains Two and Three at the Mangala Processing Terminal (MPT) to be ready Q2 2010
  • 600 km pipeline from MPT to Salaya to be commissioned Q2 2010
  • Sales arrangements in place for 143,000 bopd
  • Production expected to ramp up to 125,000 bopd in H2 2010
  • Development wells indicate Mangala production potential of 150,000 bopd subject to GoI approval


  • Geophysical surveys across west, south and eastern Greenland acquired in 2009
  • PETRONAS became a 10% partner in existing operated blocks
  • Two drilling rigs secured for multi-well offshore exploration program summer 2010
  • Preparations for 2010 geophysical surveys and exploration drilling underway
  • Four planned exploration wells target ~1.6 billion of risked oil in place and ~385 mmbbls of risked resources, (16 billion of unrisked oil in place and 4.1 billion bbls unrisked resources) (gross mean figures)
  • Pre-qualified as Operator for the 2010 Baffin Bay Bid Round


  • Group gross cash balances of ~$1.2bn
  • PLC/Capricorn net cash of $596m with a further $64m received in 2010 following the PETRONAS farm-in to Greenland
  • Cairn India Ltd (CIL) gross cash $594m, net debt of $96m and following the $1.6bn refinancing during the year, CIL has committed undrawn loan facilities of $923m
  • Profit after tax before exceptional items of $52.7m (2008: $10.9m)

Sir Bill Gammell, Chief Executive of Cairn Energy PLC said, "Following twenty years of building a material South Asian business we are reaching a defining moment in Cairn's history. 

The phased Rajasthan development is set to produce 125,000 bopd later this year with multiple buyers now lining up to take crude through the pipeline. The basin resource base continues to grow and has the potential to take production up to 240,000 bopd.

The growth in India has enabled the company to position itself as an early entrant in frontier acreage in Greenland. By creating substantial strategic positions in two undrilled basins 1,500 kilometres apart, Cairn continues to offer shareholders exposure to transformational upside through high risk exploration."


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