29th Apr 2008 07:52
Cairn Energy PLC29 April 2008 For Immediate Release 29 April 2008 Cairn Energy PLC Cairn India Limited (Consolidated) First Quarter Results 2008 The attached release was issued today by Cairn India Limited ("Cairn India") tothe Bombay Stock Exchange and the National Stock Exchange of India. In accordance with its Indian reporting obligations, Cairn India has todayissued its Q1 2008 financial results. This financial information is reported inIndian rupees and is prepared under Indian GAAP. Cairn Energy PLC has a 65% holding in Cairn India. Cairn Energy PLC releasedgroup financial information to the UK market in its 2007 Preliminary resultsannouncement on 31 March 2008. These consolidated results were reported in US$under IFRS and include the group's interest in Cairn India. Key differences between the financials prepared under Indian GAAP to those underIFRS are summarised in the table below: IGAAP IFRSAccountingpolicyExploration Unsuccessful and other Unsuccessful costs are writtenwrite off exploration costs (eg seismic) off; other exploration costs are(income are expensed as incurred capitalised pendingstatement) determinationDepletion & Based on working interest Based on entitlement interestDecommissioning production and reserves production and reservesForeign Exchange gains and losses No exchange gains or lossesexchange recognised on translation of recognised on US$ transactions/ US$ transactions/balances into balances where US$ is also the INR reporting currency functional currency(incomestatementrecognition)DisclosureOperator fees Included in income from Included within other operating operations incomeInterest income Included in other income Included in finance income Group Production The figures in the table below show group production for Q1 2008 (including 100%of Cairn India's production). Production (boepd) Ravva CB-OS/2 Sangu TotalGross field 58,761 12,006 9,946 80,713Working interest 13,221 4,802 3,730 21,753Entitlement interest 6,900 4,595 2,982 14,477 The average realised price per boe for Q1 2008 is $61.85. Group Net Cash Group net cash at 31st March 2008 was approximately $698m (including 100% ofCairn India's net cash balances; US$ 346m). Group Accounting Cairn Energy PLC's consolidated accounts include the results of its subsidiaryundertakings (including Cairn India) to the balance sheet date. The 35% interestin Cairn India held by other shareholders is reflected as a minority interestadjustment. For Immediate Release 29 April 2008 Cairn India Limited (Consolidated) First Quarter Results 2008 The following commentary is provided in respect of the unaudited financialresults and operational achievements of Cairn India Limited and its subsidiarycompanies (referred to as "Cairn India") during the first quarter of 2008. OPERATIONAL O Rajasthan on track for first commercial production H2 2009 O Larsen and Toubro Limited (L&T) awarded contract for the Engineering Procurement and Construction (EPC) services for the export crude oil insulated pipeline and gas pipeline from Barmer, Rajasthan to Salaya, Gujarat O Bhagyam Field Development Plan (FDP) approved by Government of India - resource potential to support plateau of 175,000 bopd from Mangala, Bhagyam and Aishwariya (MBA) fields in Rajasthan O Bids submitted for offshore acreage in Sri Lanka O Exploration programme for 2008 underway -15 exploration/appraisal wells planned plus 6 seismic surveys CORPORATE O Cairn India US$ 625 million private placement approved by shareholders at Extraordinary General Meeting (EGM) FINANCIAL The gross production of the operating units was 70,766 barrels of oil equivalentper day (boepd) in Q1 2008 (74,830 boepd in Q1 2007). The working interestproduction was 18,023 boepd in Q1 2008 (19,811 boepd in Q1 2007) and was higherin comparison to Q4 2007 (16,370 boepd). "Cash flow from operations", worked out as profit after tax prior to non-cashexpenses (non-cash employee cost, depreciation, depletion, amortisation anddeferred tax) and exploration cost, was Rs. 2,514 million (US$ 63.1 million) forQ1 2008 and for Q1 2007 was Rs 1,940 million (US$ 44.1 million) Cash (net of borrowings) available as at 31 March 2008 was Rs. 13,767 million(US$ 346 million) The consolidated revenue of Cairn India Limited and its subsidiaries for Q1 2008is Rs. 3,158 million (US$ 79.3 million) and for Q1 2008 was Rs. 2,364 million(US$ 53.8 million) The average oil price realisation in Q1 2008 was US$ 100.01 /bbl and for Q1 2007was US $ 61.04 /bbl. The gas price realisation in Q1 2008 was US$ 4.08/mscf andfor Q1 2007 was 4.07/mscf). Average price realisation per boe was US$ 73.32 in Q1 2008 and for Q1 2007 wasUS$ 42.25 The consolidated Profit before tax for Q1 2008 was Rs. 1,824 million (US$ 45.8million) and for Q1 2007 was Rs. 692 million (US$ 15.7 million) The consolidated Profit after providing for tax (including deferred tax and FBT)for Q1 2008 was Rs. 1,164 million (US$ 29.2 million) and for Q1 2007 was Rs. 376million (US$ 8.5 million) The Company has decided to retrospectively to account for stock options usingthe Intrinsic Value Method as against the Fair Value Method (Black Scholes)followed to the financial year ended 31December 2007. Accordingly, the excessstock options provision has been reversed upto 31 December 2007 resulting in anexceptional gain of Rs. 156 million (US$ 3.9 million). Further the provision forthe current quarter is lower by Rs. 68 million (US$ 1.7 million) due to thischange. Deferred tax provision of Rs 554 million (US$ 13.9 million), arising mainly onaccount of certain exploration and development expenses which is 100% allowablefor tax purposes in the year in which it is incurred, but depleted / depreciatedin the books of accounts from the year of production. Tax (including current tax and deferred tax) is calculated at entity level andnot on a consolidated basis; losses arising within one jurisdiction are notavailable for offset against profits arising in another. Amounts shown in US$ are converted based on an average exchange rate for the Q12008 of 39.815 and a closing exchange rate as on 31st Mar 2008 of 39.815(average rate of Q1 2007 was 43.967) Rahul Dhir, Chief Executive Officer said: "We are delighted that the FDP for Bhagyam, the second biggest field inRajasthan, has now been approved. Oil field development work in Rajasthan iswell underway. The major contractors for the integrated upstream and midstreamdevelopment are in place and on course to deliver first oil from Mangala in thesecond half of 2009." OPERATIONAL REVIEW Gross operated production in India for the first quarter of 2008 was 70,766boepd (18,023 working interest boepd). RAJASTHAN BASIN - North West India Block RJ-ON-90/1 Development - Upstream (Cairn India 70% (Operator); ONGC 30%) The FDP for Bhagyam, the second largest field in the block, has been approved bythe GoI on the basis of a currently planned plateau production rate of 40,000bopd. The Bhagyam and Shakti fields are contained within a second DevelopmentArea of 430 km2. Oil field development work at the Cairn India's world class discovery inRajasthan is in full flow. The integrated upstream and midstream development ison course to produce first oil from Mangala in the second half of 2009. All major civil and construction contracts have been awarded, long lead timeitems have been procured and work on both the upstream and midstream (pipeline)are well underway. Larsen and Toubro Limited (L&T) has been awarded the secondmajor contract by Cairn India for the Engineering Procurement and Construction(EPC) services for the export crude oil insulated pipeline and gas pipeline fromBarmer, Rajasthan to Salaya, Gujarat. Rajasthan is a major resource base and Cairn India and its Joint Venture (JV)partner are focused on realising the full potential through conventional andenhanced oil recovery techniques. Subject to regulatory approval, the latestField Development Plans for the three main fields assume a sustainable peakplateau production of 175,000 bopd: Mangala 125,000 bopd, Bhagyam 40,000 bopdand Aishwariya 10,000 bopd. Interpretation of data from a 120 km2 high definition 3D seismic survey overMangala is underway. This data will be used for more detailed reservoircharacterisation for development drilling and for the application of future timelapse monitoring techniques. Development - Midstream (Cairn India 70% (Operator); ONGC 30%) The Government of India (GoI) has agreed to grant Rights of Use (RoU) for thepipeline in order to meet the planned schedule. The front end engineering anddesign (FEED) and the procurement process for most of the long lead items havealready been completed. The EPC for the pipeline has been issued. The land development contract for theViramgam Terminal has been awarded and site preparation work commenced at theViramgam Terminal site in mid February 2008. The notification for a 212 kilometre stretch of the pipeline in Gujarat hasalready been published by the GoI and the RoU now rests with the JV partners.The remaining notifications for 154 kilometres in Rajasthan and a further 224kilometres in Gujarat will be submitted to the GoI in due course. The availableRoU will allow us to commence pipe line construction as per the schedule,starting in Gujarat in H2 2008. The proposed routing of the pipeline will allow access to an extensive existingpipeline infrastructure and refinery network, with a final coastal deliverypoint that also affords access to the majority of India's refining capacity. Discussions are ongoing with the GoI regarding the potential inclusion of thePipe line project infrastructure within the FDP for cost recovery purposes. Enhanced Oil Recovery The second phase of laboratory work for the Mangala field has commenced which isdesigned to confirm and refine chemical selection for the pilot project Cairn iscurrently studying the staged and early application of aqueous-based chemicalflooding EOR techniques for the MBA fields. Early application of EOR in thesefields would be designed to extend their crude oil production plateau periods,reduce water production, mitigate future decline rates and potentiallyaccelerate crude oil production. A pilot for polymer and ASP flooding for theMangala field has been prepared and approvals will be sought in 2008 from the JVpartner and the GoI to commence the pilot once production has started from thefield in 2009. Northern Appraisal Area (Cairn India 100%) A Declaration of Commerciality (DoC) for the three discoveries made in this area(Kameshwari West 2, 3 and 6) has been approved by the JV partners, along with aproposed new Development Area of 1,178 km2. The DoC is now awaiting approvalfrom the GoI. Exploration Overview Rajasthan and other assets The 2008 exploration programme includes the drilling of 15 wells, seven of whichwill be operated by Cairn India and the acquisition of three onshore 2D seismicsurveys a 200 km2 onshore 3D survey and two offshore 2D surveys comprising 6,150km, all but one of which will be operated by Cairn India. The 2008 seismicacquisition will position Cairn India for an extensive drilling programme in2009. Five wells are expected to be drilled in RJ-ON-90/1 from the third quarter of2008, including appraisal of the 2003 Kameshwari Discovery and drilling ofunder-explored plays within the basin. An important well in GV-ONN-2002/1, inthe state of Bihar, will test the potential of this part of the frontier GangaBasin. Cairn India continues to invest a substantial amount of effort into explorationnew ventures. Two bid applications for blocks in the Sri Lanka bid round havebeen submitted. The company is also actively evaluating the blocks available inIndia as part of the NELP VII Round, which is now expected to close in May 2008. Cambay Basin - Western India Block CB/OS-2: (Cairn India 40% (Operator)) In the CB/OS-2 block the Lakshmi, Gauri and CB-X fields are primarily gasproducing, with some oil production. The average gross production for Q1 2008was 12,006 boepd (comprising average gas production of 36mmscfd and average oil/condensateproduction of 6,042 bopd). CB/OS-2 oil production reached a daily record of morethan 10,000 bopd gross in February 2008. In September 2007 a drilling campaign began in CB/OS-2 with four wellssuccessfully drilled and completed as part of the further development of theLakshmi and Gauri fields. By February 2008 all of these wells have been placedon production. Three well workovers aimed at restoring production in wells withmechanical problems or allowing access to other hydrocarbon pools were alsosuccessfully completed. A field development plan for the Ambe field has been submitted to the GoI. CB-ONN-2002/1 (Cairn India 30% (ONGC Operator)) A three well drilling programme is expected to commence in 2008. Krishna-Godavari Basin - Eastern India Ravva (Cairn India 22.5% (Operator)) Average gross production from the Ravva field for Q1 2008 was 58,761 boepd(comprising average oil production of 46,561 bopd and average gas production of73 mmscfd). Ravva has reached the significant milestone of producing 200 millionbarrels of oil from the field. An infill drilling campaign commenced in the field in October 2006 and concludedin the first quarter of 2008, and was aimed at extending the plateau and addingreserves. The recent infill campaign, in which four new producers and three newinjectors have been drilled, has been successful in meeting the desiredobjectives. Production has now commenced from the four new infill wells. In addition, onewater injection well has been put into service to enhance the reservoirwater-flood scheme, while two others are planned to start injection in Q2 2009.Two well workovers were also completed. KG-ONN-2003/1 (Cairn India 49% (Operator - exploration phase)) The acquisition of a 500 km 2D seismic programme commenced in January 2008 to befollowed by the acquisition of a 200km2 3D programme. Planning has commenced insupport of drilling between three and five exploration wells from the beginningof 2009. KG-DWN-98/2 (Cairn India 10% (ONGC Operator)) The Joint Venture has approved a three well appraisal programme for 2008,together with additional 3D seismic acquisition. Approval of an appraisal periodup to July 2010 under the PSC for appraisal of the discoveries made in the blockto date has been given by the GoI. PR-OSN-2004/1 (Cairn India 35%, (Operator)) The acquisition of an offshore 3,100 km 2D seismic programme will be completedshortly. An 800 km2 3D programme on the block is planned early in 2009. Ganga Basin- Northern India GV-ONN-2002/1 (Cairn India 50% (Operator) Capricorn 50%) An exploration well will be drilled in 2009 .Site construction is expected to becompleted early in Q3 2009. GV-ONN-97/1 (Cairn India 15% Capricorn 15% (ONGC, Operator)) Final logging is underway of the Banda-1 well, which was spudded at the end of2007. The well is currently operating. GV-ONN-2003/1 (Cairn India 49% (Operator - exploration phase) Capricorn 25%) The acquisition of a 550 km 2D seismic programme is expected to commence in2008. Rest of India VN-ONN-2003/1 (Cairn India 49% (Operator - exploration phase)) The acquisition of a 500 km 2D seismic programme is expected to commence in H22008. KK-DWN-2004/1 (Cairn India 40% (ONGC, Operator)) A 3,500 km 2D seismic programme is expected to be acquired in 2008. CORPORATE At the EGM of the Company held on 16 April 2008, the shareholders of the Companyapproved the Preferential Issue of 11, 30, 00,000 (Eleven Crores and ThirtyLakh- US$ 625 million) equity shares of the Company of face value of Rs. 10/-each at a premium of Rs. 214.30 per equity share aggregating to Rs. 2,534.59Crores to Petronas International Corporation Limited and Orient Global TamarindFund Pte Limited. ------------------------------------------------ Cairn India Limited Consolidated Financial Results Registered Office : 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai 400025 Corporate Office : 3rd & 4th Floors, Vipul Plaza, Sun City, Sector 54, Gurgaon 122 002 Unaudited Financial Results for the quarter ended 31 March 2008 (All amounts are in thousands of Indian Rupees, unless otherwise stated) ------------------------------------------------Sr.No. Particulars 3 months ended 3 months ended Year ended 31 March 2008 31 March 2007 (Unaudited) (Unaudited) 31 December 2007 (Audited) ------ -------------------- -------- -------- -------------- 1 Income from Operations 3,158,375 2,363,933 10,122,627 2 Other Income 217,595 361,588 1,324,089 3 Total Income (1+2) 3,375,970 2,725,521 11,446,716 4 Total Expenditure a) (Increase)/Decrease in stock-in-trade (32,717) 95,483 (111,714) b) Operating expenses 466,327 472,978 1,945,812 c) Employees cost 252,153 308,507 1,257,398 d) Depreciation, Depletion, Amortisation & Site Restoration expenses 632,414 527,818 2,077,056 e) Other expenditure - Administration cost 192,663 14,647 359,595 f) Exploration cost 174,915 474,060 2,512,282 g) Foreign exchange fluctuation 18,913 138,038 2,120,011 h) Total 1,704,668 2,031,531 10,160,440 5 Interest and Finance cost 3,291 1,511 27,049 6 Exceptional items (155,723) - - 7 Profit /(Loss) from ordinary activities before tax (3) - (4+5+6) 1,823,734 692,479 1,259,227 8 Provision for taxation a) Current Tax 96,444 90,910 387,756 b) Deferred Tax 554,070 216,449 764,194 c) Fringe benefit Tax 8,905 9,500 352,719 9 Net Profit/(Loss) from ordinary activities after tax (7-8) 1,164,315 375,620 (245,442) 10 Extraordinary Items (net of tax) - - - 11 Net Profit/(Loss) for the period (9-10) 1,164,315 375,620 (245,442) 12 Minority Interest - - - 13 Net Profit/(Loss) for the period after Minority Interest (11-12) 1,164,315 375,620 (245,442) 14 Paid-up Equity Share Capital (Face value of Rs. 10 each) 17,791,917 17,783,994 17,783,994 ------ -------------------- -------- -------- -------------- 15 Reserves excluding Revaluation Reserves 276,084,115 16 Earning/(Loss) per Share (par value Rs. 10 each)* - in rupees (a) Basic earnings/(loss) per share 0.65 0.21 (0.14) (b) Diluted earnings/(loss) per share 0.65 0.20 (0.14) 17 Public Shareholding - Number of shares 552,347,869 551,555,629 551,555,629 - Percentage of shareholding 31.04% 31.01% 31.01% ------ -------------------- --------- --------- -------------- *not annualisedNotes :1. The above unaudited financial results of the current quarter have been reviewed and recommended by the Audit Committee andapproved by the Board of Directors at their meeting held on 29th April 2008. The limited review of the consolidated financial resultsfor the quarter ended 31st March 2008 was conducted by the auditors of the Company. However, the results for the quarter ended 31stMarch 2007 were not reviewed by the auditors.2. The Company and its subsidiaries operate in only one segment i.e. "Oil and Gas Operations"3. During the current quarter, the Company has written off Rs.174,915 thousands on account of exploration costs as per the"Guidance Note on Accounting for Oil and Gas Producing Activities" issued by the Institute of Chartered Accountants of India,pertaining to unsuccessful wells, geological/ geophysical studies, seismic and other surveys.4. Foreign exchange fluctuation charge of Rs. 18,913 thousands includes the cost arising on the USD/INR options settled ormarked-to-market as at 31st March 2008, taken for hedging foreign currency risks of the group and the net gain arising on settlementand translation of foreign currency monetary items at the rate prevailing at the end of the reporting date.5. The Company has decided to retrospectively account for stock option using the Intrinsic Value Method as against the FairValue Method (Black Scholes) followed till the financial year ended 31st December 2007. Accordingly, the excess stock option provisionupto 31st December 2007 has been reversed, resulting in exceptional gain of Rs.155,723 thousands. Further the provision for thecurrent quarter (included in employee cost) is lower by Rs. 68,221 thousands due to this change.6. The Company and its subsidiaries ("Group") allocate and recover certain costs, viz, employee cost, depreciation,administration cost and finance cost from joint ventures operated by the Group and amounts shown above against these costs representthe net cost (Group's share) after allocation and recovery. Accordingly, Rs. 1,166,007 thousands, Rs. 1,197,569 thousands and Rs.4,553,805 thousands have been allocated and adjusted against these costs on a proportionate basis during the quarter ended 31st March2008, quarter ended 31st March 2007 and the year ended 31st December 2007, respectively.7. The current tax and deferred tax provisions have been computed on the basis of standalone financials of those foreignsubsidiaries, which have operations in India i.e. not based on consolidated financials of Cairn India Limited and all itssubsidiaries.8. Previous quarter / year figures have been regrouped /rearranged wherever necessary to confirm to the current quarter'spresentation. For and on behalf of the BoardPlace : New Delhi Rahul DhirDate : 29th April 2008 Managing Director and Chief Executive Officer ----------------------------------------------- Cairn India Limited Registered Office : 101, West View, Veer Savarkar Marg,Prabhadevi, Mumbai 400025 Corporate Office : 3rd & 4th Floors, Vipul Plaza, Sun City ,Sector 54, Gurgaon 122 002 ----------------------------------------------- Unaudited Financial Results for the quarter ended 31 March 2008 (All amounts are in thousands of Indian Rupees, unless otherwise stated) -----------------------------------------------Sr.No. Particulars 3 months ended 31 March 2008 (Unaudited) 3 months ended 31 March 2007 (Unaudited) Previous accounting year ended 31 December 2007 (Audited)------ ------------------- -------- -------- -------------- 1 Income from Operations 8,927 4,977 12,708 2 Other Income 61,963 121,047 326,915 3 Total Income (1+2) 70,890 126,024 339,623 4 Total Expenditure a) Increase/Decrease in stock-in-trade - - - b) Operating expenses 36,125 - - c) Employees cost 147,208 207,246 623,374 d) Depreciation, Depletion, Amortisation & Site Restoration expenses - - - e) Other expenditure - Administration cost 55,529 4,015 174,838 f) Exploration cost 74,495 - 8,879 g) Foreign exchange fluctuation 28 - - h) Total 313,385 211,261 807,091 5 Interest and Finance cost 10 199 209 6 Exceptional items (155,723) - - 7 Profit /(Loss) from ordinary activities before tax (3) - (4+5+6) (86,782) (85,436) (467,677) 8 Provision for taxation a) Current Tax - - - b) Deferred Tax - - - c) Fringe benefit Tax 590 - 320,489 9 Net Profit/(Loss) from ordinary activities after tax (7-8) (87,372) (85,436) (788,166) 10 Extraordinary Items (net of tax) - - - 11 Net Profit/(Loss) for the period (9-10) (87,372) (85,436) (788,166) 12 Paid-up Equity Share Capital (Face value of Rs.10 each) 17,791,917 17,783,994 17,783,994 13 Reserves excluding Revaluation Reserves 276,084,115 14 Earning/(Loss) per Share (par value Rs. 10 each)* - in rupees (a) Basic earnings/(loss) per share (0.05) (0.05) (0.44) (b) Diluted earnings/(loss) per share (0.05) (0.05) (0.44) 15 Public Shareholding ------ ------------------- -------- -------- -------------- - Number of shares 552,347,869 551,555,629 551,555,629 - Percentage of shareholding 31.04% 31.01% 31.01% ------ ------------------- --------- --------- -------------- *not annualisedNotes :1. The above unaudited financial results of the current quarter have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 29th April 2008. Thelimited review was carried out by the auditors of the Company under the provisions of clause 41 of the Listing Agreement.2. The Company operates in only one segment i.e. "Oil and Gas Operations"3. The stock options outstanding as on 31st March 2008 were 6,714,233 options under Cairn India Senior Management Plan 2006 ("CISMP"), 4,755,244 options under Cairn India Performance Option Plan 2006 ("CIPOP")and 8,545,710 options under Cairn India Employees Stock Option Plan 2006 ("CIESOP"). 792,240 share options were exercised under CISMP scheme and no new options were issued and cancelled by the Company during thequarter Q1 2008. Employees cost for the quarter includes Rs.125,302 thousands representing amortisation of employee compensation expenses pertaining to these stock option schemes.4. During the current quarter, the Company has written off Rs.74,495 thousands on account of exploration costs as per the "Guidance Note on Accounting for Oil and Gas Producing Activities" issued by theInstitute of Chartered Accountants of India, pertaining to geological/ geophysical studies, seismic and other surveys.5. The Company has decided to retrospectively account for stock option using the Intrinsic Value Method as against the Fair Value Method (Black Scholes) followed till the financial year ended 31st December 2007.Accordingly, the excess stock option provision has been reversed upto 31st December 2007, resulting in exceptional gain of Rs.155,723 thousands. Further the provision for the current quarter (included in employeecost) is lower by Rs. 68,221 thousands due to this change.6. During the current quarter, the Company acquired interests in the following oil and gas blocks from its subsidiary companies by way of assignment of interest.(a) 30% interest in block CB-ONN-2002/1 from Cairn Energy Gujarat Block 1 Limited (b) 30% interest in block RJ-ONN-2003/1 from Cairn Exploration (No. 2) Limited(c) 25% interest in block KG-ONN-2003/1 from Cairn Exploration (No. 4) Limited(d) 25% interest in block VN-ONN-2003/1 from Cairn Exploration (No. 6) Limited(e) 49% interest in block GS-OSN-2003/1 from Cairn Exploration (No. 7) Limited7. The number of investors' complaints received and disposed of during the quarter ended 31st March 2008 were as follows-a) Pending at the beginning of the quarter 23b) Received during the period 57c) Disposed of during the period 62d) Pending at the end of the quarter 188. As on 31 March 2008, the Company and its subsidiaries together have utilised Rs. 75,405,585 thousands for the purposes listed in the Prospectus, as against the projected utilisation of Rs.88,248,900thousands. The funds utilised till 31st March 2008 were as follows- Rupees in thousandsa) Acquisition of shares of Cairn India Holdings Limited from Cairn UK Holdings Limited 59,580,837b) Exploration and Development expenses 14,006,899c) General corporate purposes 218,230d) Issue expenses 1,599,6199. Previous quarter / year figures have been regrouped /rearranged wherever necessary to confirm to the current quarter's presentation. For and on behalf of the BoardPlace : New Delhi Rahul DhirDate : 29th April 2008 Managing Director and Chief Executive Officer Enquiries to: Analysts/Investors Anurag Mantri, Investor Relations Manager +919810301321 Media David Nisbet, Director, Corporate Communications +91 99104 87715 About Cairn India Limited O "Cairn India" where referred to in the release means Cairn India Limitedand/or its subsidiaries, as appropriate. O "Cairn" where referred to in this release means Cairn Energy PLC and/orits subsidiaries (including Cairn India), as appropriate. O Cairn India is headquartered in Gurgaon on the outskirts of Delhi, withoperational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan. O On 9 January 2007, Cairn successfully concluded the flotation of itsIndian business with the commencement of trading of Cairn India Limited on theBombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLCcurrently holds a 65% shareholding in Cairn India Limited. O Cairn India is currently focused on exploration and production in Indiawhere it has a working interest in 14 blocks, two of which are producinghydrocarbons. The company holds material exploration and production positionsin west India and east India along with new exploration rights elsewhere inIndia. O This focus on India has already resulted in a significant number of oiland gas discoveries. In particular, Cairn made a major oil discovery (Mangala)in Rajasthan in the north west of India at the beginning of 2004. More than 20discoveries have been made in Rajasthan block RJ-ON-90/1. O In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a ProductionSharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is sharedbetween Cairn India and ONGC, with Cairn India holding 70% and ONGC havingexercised their back in right for 30%. A further Development Area (430 km2),including the Bhagyam and Shakti fields, is also shared between Cairn India andONGC in the same proportion. O The Operating Committee for Block RJ-ON-90/1 consists of Cairn India andONGC. O India currently imports approximately 2,000,000 barrels of oil per day(bopd). It produces approximately 700,000 bopd itself of which approximately50,000 bopd comes from the Cairn India operated Ravva field on the east coast ofIndia O For further information on Cairn India Limited see www.cairnindia.com Glossary Technical 2P proven plus probable 3P proven plus probable and possible2D/3D two dimensional/three dimensionalboe barrel(s) of oil equivalentboepd barrels of oil equivalent per daybopd barrels of oil per daybscf billion standard cubic feet of gasEOR enhanced oil recoveryFDP field development planmmboe million barrels of oil equivalentmmscfd million standard cubic feet of gas per dayPSC production sharing contract The Fatehgarh is the name given to the primary reservoir rock of the Northern Rajasthan fields of Mangala, Aishwariya and Bhagyam. The Barmer Hill is a lower permeability reservoir which overlies the Fatehgarh. The Dharvi Dungar forms the secondary reservoirs in the Guda field and is the reservoir rock encountered in the recent Kameshwari West discoveries. The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbli is the primary reservoir for the Raageshwari field. These materials contain forward-looking statements regarding Cairn India, ourcorporate plans, future financial condition, future results of operations,future business plans and strategies. All such forward-looking statements arebased on our management's assumptions and beliefs in the light of informationavailable to them at this time. These forward-looking statements are, by theirnature, subject to significant risks and uncertainties and actual results,performance and achievements may be materially different from those expressed insuch statements. Factors that may cause actual results, performance orachievements to differ from expectations include, but are not limited to,regulatory changes, future levels of industry product supply, demand andpricing, weather and weather related impacts, wars and acts of terrorism,development and use of technology, acts of competitors and other changes tobusiness conditions. Cairn India undertakes no obligation to revise any suchforward-looking statements to reflect any changes in Cairn India's expectationswith regard thereto or any change in circumstances or events after the datehereof. Unless otherwise stated the reserves and resource numbers within thispresentation represent the views of Cairn India and do not represent the viewsof any other party, including the Government of India, the Directorate Generalof Hydrocarbons or any of Cairn India's joint venture partners. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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