10 Sep 2019
Half-yearly Results 2019
Simon Thomson, Chief Executive, Cairn Energy PLC said:
"As a full cycle E&P business Cairn has seen good progress in the first half of 2019 with the opportunity to develop and deliver multiple catalysts for future growth.
Production performance from our North Sea assets is ahead of expectations, delivering significant cash flow to reinvest in the portfolio. The SNE development in Senegal, where FID is expected in H2, remains on schedule for first oil in 2022.
Our drilling programme is about to commence offshore Mexico, where Cairn has built a material footprint in one of the world’s most prolific basins. Recent portfolio acreage additions provide line of sight to future high potential exploration prospects."
H1 2019 Summary
- Combined net oil and gas production ahead of 2019 guidance at ~23,700 boepd (+15% v previous six months)
- Oil and gas sales revenue US$257m, average realised price US$68/boe; average production cost US$17/boe
- Net cash inflow from oil and gas production US$177m
- Capital expenditure: cash outflow US$135m (US$14m of tax refund receivable)
- Group cash at 30 June 2019 US$58m; US$60m drawn under US$575m RBL facility
- Full year oil production guidance: upgraded to 21,000-23,000 bopd from 19,000-22,000 bopd; average production cost reduced from US$20/boe to ~US$18/boe
- Full year forecast capital expenditure US$295m; Exploration & Appraisal US$165m (net of tax refund), Development & Production US$130m
- Portfolio Management: agreed to farm down 15% WI in Chimera to DNO, agreement with ENI to swap 15%WI in Block 10 Mexico and agreed sale of 10% WI in Nova development to ONE-Dyas
- Senegal: SNE field development (Cairn 40% WI) major contracts awarded. JV progressing towards FID in H2 2019, targeting first oil in 2022
- Mexico: two operated wells Block 9 (Cairn 50% WI) to be drilled in Q3 and Q4: two non-operated wells on Block 7 (Cairn 30% WI) and Block 10 (Cairn 15% WI) to commence in H2 2019
- UK and Norway: Drilling about to commence on Chimera (Cairn 45% WI) exploration well
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Linda Bain, Corporate Affairs
Cairn Energy PLC
Tel: 0131 475 3000
Patrick Handley, David Litterick,
Brunswick Group LLP
Tel: 0207 404 5959
There will be a live audio webcast of the results presentation available to view on the website (www.cairnenergy.com) at 9am BST. This can be viewed on PC, Mac, iPad, iPhone and Android mobile devices.
An 'on demand' version of the webcast will be available on the website as soon as possible after the event. This can be viewed on PC, Mac, iPad, iPhone and Android mobile devices.
The results presentation slides will be available on the website from 7am BST.
You can listen to the results presentation by dialling in to a listen only conference call at 9am BST using the below dial-in details.
United Kingdom (Local): +44 (0)330 336 9411
Access code: 6783932
A transcript of the presentation will be available on the website as soon as possible after the event.