For the year ended 31 December 2018
2018 Summary
- Combined net production averaged ~17,500* boepd
- Oil and gas sales revenue US$396m, average realised price US$68 boe**; average production cost US$20.5 per mmboe
- Net cash inflow from oil and gas production US$229m
- Capital expenditure: cash outflow of US$252m***, remaining cash outflows post year end US$30m
- Year end Group cash US$66m; US$85m drawn under US$575m RBL facility
- Operating loss US$182m from the impairment of Kraken following downward revision in reserves; net loss after tax US$1.1bn resulting principally from write down of Cairn’s investments in India
2019 Outlook
- Estimated net production of 19,000 to 22,000 bopd*; average production cost US$20/bbl
- Forecast capital expenditure US$300m***
- Senegal – SNE field development first phase on schedule. Targeting first oil 2022, gross production 100,000 bopd
- Norway – Nova field development on schedule. Targeting first oil 2021, peak gross production 50,000 bopd
- UK and Norway – up to four exploration wells (three Cairn operated) planned, targeting ~500 mmboe. The first well in the programme, Presto, spudded on March 1
- Mexico – three exploration wells (two Cairn operated) planned targeting ~500mmboe
- Hearings for Cairn’s arbitration claim against India concluded in 2018; drafting of the award by the Tribunal is ongoing
*Before FlowStream’s production entitlement of ~1,360 bopd in 2018; expected to be 1,350 to 1,575 bopd in 2019
**Before hedging costs of US$1.34 boe
***Net of Norwegian tax refund