Cairn’s business model is to create, add and realise value for stakeholders through the exploration, development and production of oil and gas within a self-funding business model.
Exploration offers material value upside potential to stakeholders and production provides the cash flow to sustain exploration and development.
Cairn identifies assets it can add value to through exploration activity including 3D seismic and drilling as part of a focused exploration strategy. If successful, exploration activity can create material value.
In order to add value Cairn looks to progress existing exploration assets through the appraisal and development stages or can acquire new assets at this point in the oil and gas lifecycle.
Cairn realises value by progressing development assets through to production and/or realising value through asset sales and either reinvesting the proceeds into the business to fund exploration and development activity or returning cash.