Cairn India Sees Increase in Revenues

Cairn India provided audited financial results and operational achievements for the financial year 2009-10. Please note that the financial year 2009-10 (FY 2009-10) refers to the period April 2009 - March 2010, "corresponding previous year" represents twelve months April 2008 - March 2009 and "previous financial period" consists of fifteen months January 2008 - March 2009.

FINANCIAL HIGHLIGHTS

• Operating revenues higher by 45% at INR 16,230 million (USD 342 million) (corresponding previous year: INR 11,168 million (USD 243 million)) due to Rajasthan volumes
• Profit after tax higher by 53% at INR 10,511 million (USD 222 million) (corresponding previous year: INR 6,870 million (USD 150 million))
• Gross cumulative Rajasthan development capex spend USD 2,292 million, of which USD 934 million was spent during FY 2009-10
• Arranged USD 1.6 billion facility in October 2009 though domestic and international borrowing; well funded for the Rajasthan development; assigned "AAA" rating by Credit Analysis and Research Limited (CARE) for the domestic borrowing of INR 4,000 crore (USD 850 million)

OPERATIONAL HIGHLIGHTS

• Gross operated production in FY 2009-10 was 69,059 barrels of oil equivalent per day (boepd) (corresponding previous year: 64,994 boepd); the working interest production was 24,957 boepd (corresponding previous year:17,075 boepd)

Rajasthan

• Train One at the Mangala Processing Terminal (MPT) commenced production in August 2009; Mangala average gross production in FY 2010 was 14,861 barrels of oil per day (bopd) and during Q4 FY 2010 was 17,532 bopd
• Train Two commenced production in May 2010; production from Train One and Train Two is currently ~60,000 bopd
• Train Three to be ready by end June 2010 to attain MPT processing capacity of 130,000 bopd
• Barmer to Salaya pipeline of ~590 km completed; final delivery infrastructure to refiners completed; pipeline is now operational, in preparation of sales
• Sales arrangements in place with four buyers (PSU and private sector) for 143,000 bopd
• Mangala production to ramp up to 125,000 bopd during H2 CY 2010; development drilling indicates production potential of 150,000 bopd, subject to Government of India (GoI) approval
• Mangala development drilling progresses as planned; 65 development wells drilled to date of which 51 are complete
• Eight horizontal wells drilled and six completed; tested at an average production rate of more than 11,500 bopd
• Second Raageshwari deep gas well tested to 20.9 mmscfd gas rate after hydro-fracturing treatment; similar hydro-fraccing planned for Barmer Hill formation wells
• Three wells drilled in Enhanced Oil Recovery (EOR) pilot program in Mangala Field
• Resource base supports a vision to produce 240,000 barrels of oil per day (bopd), subject to approval from GoI and partners and additional investments

Other Assets

• Ravva completed 15 years of continuous operations; more than 220 million barrels produced; 4D seismic acquisition completed
• CB/OS-2 achieved maximum crude volumes (set field record of more than 10,500 bopd); achieved more than 7 million safe work hours over last 5 years
• Exploration campaigns progressing well; 3D seismic data acquisition completed in Palar-Pennar Basin (offshore East Coast of India) and Mannar Basin in Sri Lanka

Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said, "With the completion of the critical infrastructure, Cairn India is on the verge of significant production growth. The timely execution of the world class development in Rajasthan has been possible with very strong support from the Government of India, State Government of Rajasthan and our joint venture partner, ONGC.

The Barmer Basin continues to evolve and the company is focused on optimizing the resource base with a vision for increased production from the Rajasthan block."