17th May 2019 09:16
LONDON (Alliance News) - Cairn Energy PLC on Friday said it returned to being a full cycle exploration and production company and production for 2019 remains within guidance of 19,000 to 22,000 barrels of oil per day for the first four months.
The oil and gas exploration and development company also said that it is pleased with the performance so far this year as UK North Sea oil field Catcher is operating ahead of expectations and with continued progress on SNE and Nova projects located in Senegal and Norway, respectively.
"We are particularly pleased with the performance of Catcher, which is operating ahead of our expectations and where operating efficiency is excellent", Chief Executive Simon Thomson said in his annual general meeting statement.
Cairn Energy has a 30% stake in the Catcher oil field. Premier Oil PLC owns 50%.
"While we have reduced our reserve estimates for Kraken, we know what needs to be done to improve the performance of the field and we are working with the operator on several initiatives designed to increase the productivity of the assets on a sustainable basis", Simon Thomson added.
Cairn has a 30% working interest in the North Sea oil field Kraken, while the operator Enquest PLC has 70% stake.
Cairn said continues to progress its two home grown development projects; SNE and Nova. Both projects are firmly on schedule with first oil from Nova targeted in 2021 and from SNE in 2022, the company said.
The exploration drilling programme for the second half of 2019 includes six wells, three in the UK and Norway, and three in Mexico. Cairn will operate five of these wells.
The first well in its Mexico programme is expected to be drilled on Block 9 and will commence in the third quarter. In Norway and the UK the second well in the programme targeting the Lynghaug prospect is expected to spud later in second quarter.
With regards to the Indian arbitration, Cairn is still awaiting the final determination from the arbitration panel and the company continue to have a "high level of confidence" in the merits of its case.
Cairn began its proceedings against India in 2015 after "retrospective taxation actions" by the country's tax department in 2014. Cairn, which claimed around USD1.4 billion, said in April it no longer expected the award to be issued before late 2019.
Shares in Cairn Energy were down 0.2% at 167.72 pence each on Friday morning.
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