Cairn Sells Interest In Catcher, Kraken Fields For $455M
Oil and gas company Cairn Energy has completed the sale of its interests in the Catcher and Kraken fields located off the UK for $455 million.
Cairn initially proposed the sale of its interests in the UK Catcher and Kraken fields to Waldorf Production in March 2021. This enabled the company to sell its entire 20 percent interest in the Catcher field and 29.5 percent interest in the Kraken field.
The completion of the transaction was announced on November 3, 2021, following a vote on Cairn Energy’s general meeting held on October 28. The resolution passed with 95.4 percent of shareholder votes in favor.
The company said that firm consideration payable to Cairn is $455 million and that it will be adjusted for working capital and interim period cashflows from the economic date of January 1, 2020.
Waldorf Production will pay additional, uncapped contingent consideration when Brent exceeds $52/bbl on average in any of the five years 2021 to 2025.
"Assuming production is in line with Cairn forecasts, this contingent consideration is expected to generate approximately a further $100 million at $60/bbl Brent prices, $175 million at $70/bbl Brent prices, and $240 million at $80/bbl Brent prices," Cairn stated. Brent crude futures fell $1.03, or 1.2 percent, to $83.69 a barrel as of 7:30 AM GMT on Wednesday.
In an announcement on Tuesday, Waldorf Production said: "The addition of the interests in Kraken and Catcher brings the average production from the Company’s assets up to circa 22,000 boe per day and increases 2P reserves to 52 million boe as of year-end 2020."
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