30th Oct 2014 08:47
LONDON (Alliance News) - Cairn Energy PLC on Thursday said its financial position is currently strong and said it is planning to start drilling wells in the North Sea and in western Europe by 2016-17.
The FTSE 250 oil company said its group cash at the end of September was USD953 million and said it is fully funded through to free cash flow in 2017. In addition, it said the farm-down of the Catcher development in the North Sea reduced its capital expenditure by around USD380 million, creating financial flexibility for the company.
The group said the Catcher and Kraken development in the North Sea are both progressing and said it is targeting the first oil from the wells in 2016-17. Along with those, the company has a number of further contingent wells in north west Europe which it envisages drilling in 2015, subject to a final investment decision by its partners on the projects.
The group said the first of its two planned offshore Senegal wells discovered oil and said drilling is underway on a second. The group owns a 40% working interest in the wells.
It is planning one exploration well at the Cap Boujdour contract area in Morocco in December. It has a 20% working interest in that project.
The group also said it is working to resolve its tax issue in India. Owing to the issues in India, the group is still restricted from accessing its 10% residual shareholding in Cairn India Ltd, valued at USD927 million at the end of the third quarter to September.
Cairn Energy shares were down 1.0% to 153.10 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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