15th May 2014 09:19
LONDON (Alliance News) - Cairn Energy PLC Thursday said that BNP Paribas SA has agreed to underwrite its debt facility to part fund the development of North Sea assets, and its fully funded exploration drilling programme is continuing with the first of two planned wells in Senegal.
The FTSE 250 oil and gas exploration company said it has entered into an agreement with French bank BNP Paribas to fully underwrite Cairn's seven-year debt facility of USD575 million which will be available to fund part of the Catcher and Kraken development projects in the North Sea.
Cairn Energy said that work is continuing on its major Kraken development, targeting first oil in the second half of 2016 or the first half of 2017 and detailed locations for the initial development wells have been agreed.
It added that work is also continuing on its Catcher development. The field development plan has received board approvals from all of its partners at the site, and UK Department of Energy and Climate Change approval is expected shortly, with first oil targeted for mid 2017.
Cairn Energy said its net cash at March 31 was USD1.2 billion and, by the end of 2017, Cairn expects to have spent roughly USD1 billion on its development assets, funded by cash resources and debt.
The company added that with regards to its ongoing exploration programme, the first of two planned wells offshore Senegal began in April, one exploration well is planned to start on the Cap Boujdour Contract Area in Morocco in the fourth quarter, and two North Sea exploration wells are scheduled in 2014, with another planned for 2015.
Cairn Energy shares were up 1.1% to 183.40 pence, putting it in the top FTSE 250 risers on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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