06 Aug 2019
Cairn is pleased to announce that it has entered into a farm-out agreement for the sale of a 10% interest in the Nova development offshore Norway.
With effect from 1 January 2019, ONE-Dyas Norge AS shall acquire 10% in the project by paying US$59.5 million(m) plus customary working capital adjustments on completion.
Following this transaction Cairn will retain a participating interest of 10% interest in the Nova development and reduce its capital expenditure to the end of 2021 in the Nova area by ~US$110m.
Cairn will use the proceeds of the transaction to fund group exploration and development activities.
The Nova field development plan was submitted and approved in mid-2018 by the Norwegian Petroleum Directorate with first oil targeted in 2021.
The transaction remains subject to written consent by the Norwegian Ministry of Petroleum and Energy, partner and third-party approvals.
As a result of the transaction, subject to approvals, the partners in these licences will be as follows:
Licences PL418/PL418B: Wintershall DEA (Operator) 45%, Spirit Energy 20%, Edison 15%, Cairn 10%, ONE-Dyas 10%
Licence PL378: Wintershall DEA (Operator) 76%, Cairn 12%, ONE-Dyas 12%
Jefferies International Limited has acted as financial advisor to Cairn in connection with the farm out agreement.
The gross asset value of the interests being transferred (as per Cairn’s Annual Report issued on 12 March 2019) was US$62.5m, the net asset value was US$28.5m.
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Linda Bain/Christian Goodbody, Corporate Affairs
Tel: 0131 475 3000
Patrick Handley/David Litterick, Brunswick Group LLP
Tel: 0207 404 5959
About Cairn Energy PLC
Cairn is one of Europe's leading independent oil and gas exploration and development companies and has been listed on the London Stock Exchange for 30 years. Cairn has explored, discovered, developed and produced oil and gas in a variety of locations throughout the world as an operator and partner in all stages of the oil and gas lifecycle.
Cairn’s exploration activities have a geographical focus in North West Europe, West Africa and Latin America, underpinned by interests in production and development assets in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway, Senegal and Mexico.
For further information on Cairn please see: www.cairnenergy.com