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CIL Q3 results

25th Oct 2007 13:53

Cairn Energy PLC25 October 2007 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 Q307 financial results. This financial information is reported inIndian rupees and is prepared under Indian GAAP. Cairn Energy PLC has a 69% holding in Cairn India. Cairn Energy PLC releasedgroup financial information to the UK market in its 2007 interim resultsannouncement on 11 September 2007. These consolidated results were reported inUS$ 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 IFRSAccountingpolicy-------------------------------------------------------------------------------- Exploration Unsuccessful and other Unsuccessful costs are writtenwrite off exploration costs (eg seismic) off; other exploration costs are(income are expensed as incurred capitalised pendingstatement) determination--------------------------------------------------------------------------------Depletion & Based on working interest Based on entitlement interestDecommissioning production and reserves production and reserves--------------------------------------------------------------------------------Foreign Exchange gains and losses No exchange gains or lossesexchange recognised on translation of recognised on US$ transactions/(income US$ transactions/balances into balances where US$ is also thestatement INR reporting currency functional currencyrecognition) --------------------------------------------------------------------------------Disclosure--------------------------------------------------------------------------------Operator fees Included in income from Included within other operating operations income--------------------------------------------------------------------------------Interest income Included in other income Included in finance income-------------------------------------------------------------------------------- Group Production The figures in the table below show group production for Q3 2007 (including 100%of Cairn India's production). --------------------------------------------------------------------------------Production (boepd) Ravva CB/OS-2 Sangu Total--------------------------------------------------------------------------------Gross field 64,237 11,043 12,910 88,190Working interest 14,454 4,417 9,682 28,553Entitlement interest 7,256 4,531 7,742 19,529-------------------------------------------------------------------------------- The average realised price per boe for Q3 2007 is approximately $42. Group Net Cash Group net cash at 30 September 2007 was approximately $870m (including 100% ofCairn India's net cash balances; $506m). Group Accounting Cairn Energy PLC's consolidated accounts include the results of its subsidiaryundertakings (including Cairn India) to the balance sheet date. The 31% interestin Cairn India held by other shareholders is reflected as a minority interestadjustment. For Immediate Release 25 October 2007 Cairn India Limited (Consolidated) Third Quarter Results 2007 The following commentary is provided in respect of the unaudited financialresults and operational achievements of Cairn India Limited and its subsidiarycompanies (referred to as "Cairn India") during the third quarter of 2007. OPERATIONAL •Government of India 'Rights of Use' (RoU) approval for Rajasthan pipeline •Governments of Rajasthan and Gujarat have recommended the competent authorities to secure access to land for pipeline •Preparation of Mangala FDP addendum underway •Declaration of commerciality submitted on three discoveries in Rajasthan Northern Appraisal Area (NAA) •Field Development Plan (FDP) for Bhagyam approved by Operating Committee - under review by Management Committee, awaiting approval •Successful testing of RX-8 exploration well at Ravva •Cambay Basin (CB/OS-2) drilling programme underway •Gross operated production for Q3 2007 75,280 barrels of oil equivalent per day (boepd) (working interest 18,871 boepd) FINANCIAL The gross production of the operating units for Q3 2007 was 75,280 boepd, a 3%decrease over Q2 2007 (77,392 boepd). The working interest production is 18,871boepd in comparison to 19,775 boepd in Q2 2007. "Cash flow from operations", worked out as profit after tax prior to non-cashexpenses (non-cash employee cost, depreciation, depletion, amortisation anddeferred tax) and exploration cost was Rs. 2,193 million (US$ 54 million) forthe quarter as compared to Rs 2,234 Million (US$ 54 million) in Q2 2007. Cash (net of borrowings) available as at 30 September 2007 was Rs. 20,143million (US$ 506 million). The consolidated revenue of Cairn India Limited and its subsidiaries for thequarter ended 30 September 2007 was Rs. 2,658 million (US$ 65.6 million) a 9.25%increase over Q2 2007 (2,433 million (US$ 59 million). The average oil price realisation in Q3 2007 was higher at US$ 77.2 /bbl ascompared to Q2 2007 realisation of US$ 71.11/bbl. The gas price realisation inQ3 2007 was US$ 4.13/mscf (Q2 2007 4.35/mscf). Average price realisation per boe was US$ 58.38 in Q3 as compared to US$ 50.45in Q2. 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. The consolidated net profit for the quarter ended 30 September 2007 was Rs. 232million (US$ 6 million) as compared to a loss of Rs. 714 million (US$ 17.3million) in Q2 2007. Amounts shown in US$ are converted based on an average exchange rate for thethird quarter of 40.53 and closing exchange rate as at 30 September 2007 of39.85 (average rate for Q2 2007 41.26 and closing rate for Q2 2007 40.73). Rahul Dhir Chief Executive Cairn India said: "We continue to focus our efforts on driving forward the Rajasthan midstream andupstream developments with first oil production from Mangala on schedule for2009. The exploration success in Ravva and the drilling programme in the Cambaybasin will underpin cash flows from these two important assets." OPERATIONAL REVIEW Gross operated production in India for the third quarter of 2007 was 75,280boepd (18,871 working interest boepd). RAJASTHAN BASINS - North West India Block RJ-ON-90/1 Rajasthan Midstream (Cairn India 70% (Operator); ONGC 30%) The Government of India (GoI) has agreed to grant Rights of Use for the pipelineand the State Governments of Rajasthan and Gujarat have recommended thecompetent authorities so that the process to secure access to the land where thepipeline will be built can commence. In order to meet the projected schedule thefront end engineering and design (FEED) has already been completed and theprocurement process for several long lead items has commenced. The Operating Committee (Cairn India and ONGC) have agreed an oil export(midstream) solution. This proposal has been sent to the GoI for approval, afterwhich it will be submitted to the Management Committee. The proposal is to expand the Mangala field development plan (FDP) to include anoil export pipeline, which will transport the Rajasthan crude from Mangala to acoastal location in Gujarat. 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. Development Areas (Cairn India 70% (Operator); ONGC 30%) A number of equipment contracts have been awarded while others are beingprogressed. The main contract for the civil construction of the Mangalaprocessing facility to meet the planned first oil production in 2009 has beenawarded and work will commence shortly. A further contract for delivery of theengineering works at the Mangala processing facility is scheduled to be awardednext month. Following revision of the initial oil in place and reserve estimates forMangala, an addendum to the Mangala FDP is currently under preparation forsubmission to the Joint Venture and GoI. A 120 km2 high definition 3D seismicsurvey was completed over the Mangala field and processing of the data hasstarted. The 220 km2 appraisal 3D seismic programme of the Kameshwari light oil andcondensate discovery made in 2003 started in July 2007 and has been completed.Processing of the 3D dataset is ongoing. The FDP for Bhagyam, the second largest field in the block, was approved by theOperating Committee in May 2007 and has subsequently been submitted to theManagement Committee for approval. The Bhagyam and Shakti fields are containedwithin a second development area of 430 km2. The planned Bhagyam plateau production rate is 40,000 bopd. It is intended thatthe Bhagyam reserves will be booked when Management Committee approval isobtained. Enhanced Oil Recovery Work is continuing to confirm the optimal enhanced oil recovery (EOR) techniquesto implement in the block, with the aim of increasing ultimate oil recovery andextending the production plateau periods for each field. Further laboratory studies on Mangala have commenced to refine chemicalformulations and simulation work is ongoing. Planning of the Mangala EOR fieldpilot project to be implemented in 2009-10 is at an advanced stage and willshortly be submitted for approval to the Operating and Management Committees.The pilot is designed to demonstrate field-scale applicability of these EORtechniques and, if successful, will enable booking of EOR incremental reservesahead of full scale EOR implementation in 2012-14. Laboratory studies have also been completed for Bhagyam and similar studies onAishwariya are being planned. Northern Appraisal Area (Cairn India 100%) A Declaration of Commerciality for the three discoveries made in this area hasbeen submitted to the Operating Committee, along with a proposed DevelopmentArea for submission to the GoI via the Management Committee in Q4 2007. The GoIhad awarded a six month extension to the Exploration Phase of the NAA effectivefrom 8 May 2007. Appraisal drilling on the discoveries made in 2006 and 2007 (Kameshwari West-2,Kameshwari West-3 and Kameshwari West-6) has been completed. These discoverieshave opened up a new play in the Barmer Hill/Lower Dharvi Dungar sands on thewestern margin of the basin. Block RJ-0NN-2003/1 (Cairn India 30%, ENI Operator) Acquisition and processing of the 622 km2 3D seismic programme has beencompleted by the Operator and interpretation of the data is ongoing. Planning isunderway for exploration drilling in 2008. CAMBAY BASIN - Western India Block CB/OS-2: Lakshmi and Gauri Gas Fields (Cairn India 40% (Operator)) Average gross production from the Lakshmi and Gauri fields for Q3 2007 was11,043 boepd (comprising average oil and condensate production of 4,557 bopd andaverage gas production of 39 mmscfd). Oil production was higher than anticipated due to improved performance in somewells. Gas production was less than anticipated due to mechanical problems intwo wells. The current drilling programme will aim to address this issue. An offshore rig programme utilising the drilling rig "Offshore Courageous" hascommenced. The planned programme comprises four infill oil and gas developmentwells plus three workovers for the further development of the field. CB-ONN-2001/1 (Cairn India 30%, ONGC Operator) A final commitment well on this block was drilled and abandoned in April 2007.Cairn India will relinquish its equity in this licence shortly. CB-ONN-2002/1 (Cairn India 30%, ONGC Operator) Three exploration wells are scheduled to be drilled on this block during Q4 2007and early 2008. GS-OSN-2003/1 (Cairn India 49%, ONGC Operator) The Operator has acquired and processed a 3D marine seismic programme of 510 km2on this block. Interpretation of the data is ongoing. KRISHNA-GODAVARI BASIN - Eastern India Ravva (Cairn India 22.5% (Operator)) Average gross production from the Ravva field for Q3 2007 was 64,237 boepd(comprising average oil production of 51,725 bopd and average gas production of75 mmscfd). An extensive offshore infill development and exploration drilling programme onRavva commenced in October 2006 and is nearing completion. The RX-8 well spudded in July 2007 with the Middle Miocene reservoir as theprimary objective and Early Miocene reservoirs as a secondary objective. Oil andgas were encountered in Early Miocene, Middle Miocene and Late Miocenereservoirs. The total hydrocarbon bearing sands intersected in four pay zones is50 metres net. Three drill stem tests (DSTs) were carried out in Early Miocene EM50, MidMiocene M20 and Late Miocene LM6 reservoir intervals. The well flowed 1,150 bopdand 0.65 mmscfd with a 16/64" choke from the Early Miocene EM50 reservoir, 1,850bopd and 1.05 mmscfd through a 24/64" choke from the Middle Miocene M20reservoir and 1,500 bopd and 0.21 mmcsfd through a 24/64" choke from the LateMiocene LM6 reservoir. Production has now commenced from three new infill wells and one appraisal well.In addition, two water injection wells have been drilled and put into service toenhance the reservoir water-flood scheme. A further three workover wells are planned to maintain production capacity.Earlier in the year the RX-10 exploration well encountered 11 metres of gas payin Late Miocene reservoirs. KG-DWN-98/2 (Cairn India 10%, ONGC (Operator)) The KT-1 Cretaceous exploration well spudded in June 2007 and completedoperations in September. The well successfully appraised the shallow D gasdiscovery, but failed to reach deep targets for operational reasons. ONGC and Cairn India agreed to enter the third exploration period of the PSC andthe Operator has plans to acquire further 3D seismic data and drill an appraisalwell in 2007 / early 2008. A review of the discoveries made on this block to date is nearing completion andwill form the basis for further appraisal drilling. KG-ONN-2003/1 (Cairn India 49%, Operator*) Plans are underway to commence a seismic acquisition programme of 2D and 3D dataon this block in late 2007 / early 2008. PR-OSN-2004/1 (Cairn India Limited 35%, Operator) A 2D seismic programme on this block is being planned for early 2008. KK-DWN-2004/1 (Cairn India Limited 40%, ONGC Operator) A 2D seismic programme on this block is being planned by the Operator for early2008. HIMALAYAN FORELAND BASIN - Northern India Ganga Valley GV-ONN-2002/1 (Cairn India 50% (Operator), Capricorn 50%) A 500 km 2D seismic acquisition programme was completed in August 2007.Processing of this data has been completed and planning has commenced fordrilling an exploration well in 2008. GV-ONN-97/1 (Cairn India 15%, Capricorn 15%; ONGC Operator) A final commitment well on this block is expected to be drilled in late 2007 /early 2008. GV-ONN-2003/1 (Cairn India 24% (Operator)*, Capricorn 25%) A 550 km 2D seismic acquisition programme is scheduled to commence on this blockin early 2008. VN-ONN-2003/1 (Cairn India 24% (Operator)*, Capricorn 25%) Seismic reprocessing is underway and planning will commence later in 2007 for a2D seismic acquisition programme on this block in 2008. * The PSC provides that ONGC is the proposed operator for the development andproduction of these blocks. Corporate Appointments Cairn India has made the following senior appointments effective in Q3 2007:- Malcolm Thoms was appointed as a non-executive Director of the Company at theBoard Meeting held on 20 September 2007. On the same date, Hamish Grossartresigned as non-executive Director and was re-appointed as Alternate Director toMalcolm Thoms. 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 122002 Unaudited Financial Results for the Quarter ended 30 September 2007 (All amounts are in thousands of Indian Rupees, unless otherwise stated) ------------------------------------------------------------------------------------------------------------------------ Previous accounting Quarter ended Quarter ended Year-to-date Year-to-date year endedS.No. Particulars 30 September 30 September 30 September 30 September 31 December 2007 2006 2007 2006 2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) ------------------------------------------------------------------------------------------------------------------------ 1 Income from Operations 2,658,145 - 7,455,209 - 387,417------------------------------------------------------------------------------------------------------------------------ 2 Other Income 342,998 - 1,055,848 - 62,215------------------------------------------------------------------------------------------------------------------------ 3 Total Income (1+2) 3,001,143 8,511,057 449,632------------------------------------------------------------------------------------------------------------------------ 4 Total Expenditure------------------------------------------------------------------------------------------------------------------------ a) (Increase)/Decrease in stock-in-trade 94 - (61,010) - 28,898------------------------------------------------------------------------------------------------------------------------ b) Operating expenses 508,465 - 1,322,421 - 53,119------------------------------------------------------------------------------------------------------------------------ c) Employees cost 237,812 - 834,315 - 361,126------------------------------------------------------------------------------------------------------------------------ d) Depreciation, Depletion, Amortisation & Site 512,095 - 1,444,344 - 61,226 Restoration expenses ------------------------------------------------------------------------------------------------------------------------ e) Other expenditure - administration cost 46,720 - 127,194 - 8,579------------------------------------------------------------------------------------------------------------------------ f) Exploration cost 720,426 - 1,935,402 - 59,481------------------------------------------------------------------------------------------------------------------------ g) Foreign exchange fluctuation 300,452 - 1,844,094 - 4,588------------------------------------------------------------------------------------------------------------------------ h) Total 2,326,064 7,446,760 577,017------------------------------------------------------------------------------------------------------------------------ 5 Interest and Finance cost 1,028 - 10,261 - 2,746------------------------------------------------------------------------------------------------------------------------ 6 Exceptional items - - - - ------------------------------------------------------------------------------------------------------------------------- 7 Profit /(Loss) from ordinary activities before tax 674,051 1,054,036 (130,131) (3)-(4+5+6) ------------------------------------------------------------------------------------------------------------------------ 8 Provision for taxation------------------------------------------------------------------------------------------------------------------------ a) Current Tax 113,932 - 333,102 - 11,777------------------------------------------------------------------------------------------------------------------------ b) Deferred Tax 316,248 - 797,596 - 43,861------------------------------------------------------------------------------------------------------------------------ c) Fringe benefit Tax 11,455 - 29,723 - 789------------------------------------------------------------------------------------------------------------------------ 9 Net Profit/(Loss) from ordinary activities after tax 232,416 (106,385) (186,558) ----- (7-8) ------------------------------------------------------------------------------------------------------------------------ 10 Extraordinary Items (net of tax) - - - - ------------------------------------------------------------------------------------------------------------------------- 11 Net Profit/(Loss) for the period (9-10) 232,416 (106,385) (186,558)------------------------------------------------------------------------------------------------------------------------ 12 Minority Interest - - - - 25,184------------------------------------------------------------------------------------------------------------------------ 13 Net Profit/(Loss) for the period after Minority 232,416 (106,385) (211,742) ----- Interest (11-12) -------- --------- -------- ------------------------------------------------------------------------------------------------------------------------ 14 Paid-up Equity Share Capital (Face value of Rs. 10 17,783,994 500 17,783,994 500 17,653,144 ----- each) -------- --------- -------- ------------------------------------------------------------------------------------------------------------------------ 15 Reserves excluding Revaluation Reserves - - - - 275,017,837------------------------------------------------------------------------------------------------------------------------ 16 Profit/(Loss) per Share (par value Rs. 10 each)*------------------------------------------------------------------------------------------------------------------------a) Basic and diluted before extraordinary items 0.13 - (0.06) - (0.68)------------------------------------------------------------------------------------------------------------------------b) Basic and diluted after extraordinary items 0.13 - (0.06) - (0.68)------------------------------------------------------------------------------------------------------------------------ 17 Public Shareholding------------------------------------------------------------------------------------------------------------------------ - Number of shares 551,555,629 - 551,555,629 - 571,470,588------------------------------------------------------------------------------------------------------------------------ - Percentage of shareholding 31.01% - 31.01% - 32.37%------------------------------------------------------------------------------------------------------------------------ * Not annualised Notes :The above unaudited financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 25th October 2007.The corresponding quarter in the previous year represents period from 21 August 2006, the date of incorporation of the Company, to 30 September 2006. Duringthis period, there were no transactions in the Company.The Company acquired majority ownership of Cairn India Holdings Limited and its subsidiaries on 20 December 2006, subsequently on 29 December 2006 acquired100% ownership of Cairn India Holdings Limited. The audited consolidated financial results for the year ended 31 December 2006 as indicated above,incorporate the results of Cairn India Holdings Limited and its subsidiaries during the period that these Companies were subsidiaries of CIL, i.e., for theperiod from 20 December 2006 to 31 December 2006.The Company and its subsidiaries operate in only one segment i.e. "Oil and Gas Operations"During the quarter ended 30 September 2007, the strengthening of the Indian Rupee against US Dollar has resulted in recognition of foreign exchangefluctuation loss of Rs. 300,452 thousands arising mainly on account of the deposits held in US Dollar by the foreign subsidiaries, which is intended to beused for capital imports.1. The current tax and deferred tax provisions have been computed on the basis of standalone financials of those foreign subsidiaries, which haveoperations in India i.e. not based on consolidated financials of Cairn India Limited and all its subsidiaries.During the quarter ended 30 September 2007, the Company has written off Rs.720,426 thousands on account of exploration costs as per the "Guidance Note onAccounting for Oil and Gas Producing Activities" issued by the Institute of Chartered Accountants of India, out of which Rs.548,620 thousands pertain togeological/ geophysical studies, seismic and other surveys, and balance of Rs.171,806 thousands pertains to unsuccessful wells written off. For and on behalf of the BoardPlace: Gurgaon Rahul DhirDate: 25 October 2007 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 30 September 2007 (All amounts are in thousands of Indian Rupees, unless otherwise stated) ------------------------------------------------------ --------------- --------- --------- --------- --------- --------- S.No. Particulars Quarter ended Quarter ended Year-to-date Year-to-date Previous accounting year ended 30 September 30 September 30 September 30 September 31December 2007 2007 2006 (Unaudited) 2006 2006 (Unaudited) (Unaudited) (Unaudited) (Audited) ------ --------------- --------- --------- --------- --------- --------- 1 Income from Operations 2,813 - 11,400 - - ------ --------------- --------- --------- --------- --------- --------- 2 Other Income 76,625 - 282,531 - 59,065 ------ --------------- --------- --------- --------- --------- --------- 3 Total Income (1+2) 79,438 293,931 59,065 ------ --------------- --------- --------- --------- --------- --------- 4 Total Expenditure ------ --------------- --------- --------- --------- --------- ---------a) Increase/Decrease in stock-in-trade - - - - ------- --------------- --------- --------- --------- --------- ---------b) Operating expenses - - - - ------- --------------- --------- --------- --------- --------- ---------c) Employees cost 114,631 - 454,348 - 345,962------ --------------- --------- --------- --------- --------- ---------d) Depreciation, Depletion, Amortisation & Site - - - - ------- Restoration expenses --------- --------- --------- --------- --------- ---------------e) Other expenditure - administration cost 46,275 - 79,995 - 3,630------ --------------- --------- --------- --------- --------- ---------f) Exploration cost 2,367 - 4,346 - ------- --------------- --------- --------- --------- --------- ---------g) Foreign exchange fluctuation 98 - 98 - ------- --------------- --------- --------- --------- --------- ---------h) Total 163,371 538,787 349,592------ --------------- --------- --------- --------- --------- --------- 5 Interest and Finance cost - - 199 - 1,714 ------ --------------- --------- --------- --------- --------- --------- 6 Exceptional items - - - - - ------ --------------- --------- --------- --------- --------- --------- 7 Profit /(Loss) from ordinary activities before tax (83,933) (245,055) (292,241) ------ (3) - (4+5+6) --------- --------- --------- --------- --------- --------------- 8 Provision for taxation ------ --------------- --------- --------- --------- --------- ---------a) Current Tax - - - - ------- --------------- --------- --------- --------- --------- ---------b) Deferred Tax - - - - ------- --------------- --------- --------- --------- --------- ---------c) Fringe benefit Tax 8 - 8 - ------- --------------- --------- --------- --------- --------- --------- 9 Net Profit/(Loss) from ordinary activities after tax (83,941) (245,063) (292,241) ------ (7-8) --------- --------- --------- --------- --------- --------------- 10 Extraordinary Items (net of tax) - - - - - ------ --------------- --------- --------- --------- --------- --------- 11 Net Profit/(Loss) for the period (9-10) (83,941) - (245,063) - (292,241) ------ --------------- --------- --------- --------- --------- --------- 12 Paid-up Equity Share Capital (Face value of Rs.10 17,783,994 500 17,783,994 500 17,653,144 ------ each) --------- --------- --------- --------- --------- --------------- 13 Reserves excluding Revaluation Reserves - - - - 275,017,837 ------ --------------- --------- --------- --------- --------- --------- 14 Profit/(Loss) per Share (par value Rs. 10 each)* ------ --------------- --------- --------- --------- --------- ---------a) Basic and diluted before extraordinary items (0.05) - (0.14) - (0.94)------ --------------- --------- --------- --------- --------- ---------b) Basic and diluted after extraordinary items (0.05) - (0.14) - (0.94)------ --------------- --------- --------- --------- --------- --------- 15 Public Shareholding ------ --------------- --------- --------- --------- --------- --------- - Number of shares 551,555,629 - 551,555,629 - 571,470,588 ------ --------------- --------- --------- --------- --------- --------- - Percentage of shareholding 31.01% - 31.01% - 32.37% ------ --------------- --------- --------- --------- --------- --------- * Not annualisedNotes :The above unaudited financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting heldon 25th October 2007. The limited review, under clause 41 of the Listing Agreement, has been carried out by auditors of the Company.The corresponding quarter in the previous year represents period from 21 August 2006, the date of incorporation of the Company, to 30 September 2006.During this period, there were no transactions in the Company.The Company operates in only one segment i.e. "Oil and Gas Operations"The stock options outstanding as on 30 September 2007 were 8,298,713 options under Cairn India Senior Management Plan 2006 ("CISMP"), 4,755,244 optionsunder Cairn India Performance Option Plan 2006 ("CIPOP") and 8,545,710 options under Cairn India Employees Stock Option Plan 2006 ("CIESOP"). During thequarter, the Company issued 3,235,194 stock options and cancelled 188,145 stock options under CIPOP scheme and issued 5,515,053 stock options andcancelled 437,045 stock options under CIESOP scheme. Employees cost for the quarter includes Rs.111,805 thousands, representing amortisation of employeecompensation expenses pertaining to these stock option schemes.The Finance Act, 2007 requires payment of Fringe Benefit Tax ("FBT") on Employee Share Options benefit provided to employees. FBT is payable on the datewhen an option is exercised by employees based on fair market value on the date of vesting of the options. During the quarter, no stock options have beenexercised.1. The number of investors' complaints received and disposed of during the quarter ended 30 September 2007 were as follows- a) Pending at the beginning of the quarter 205 b) Received during the period 1,026 c) Disposed of during the period 1,190 d) Pending at the end of the quarter 412. As on 30 September 2007, the Company and its subsidiaries together have utilised Rs. 67,084,446 thousands for the purposes listed in theProspectus, as against the projected utilisation of Rs.88,248,900 thousands. The funds utilised till 30 September 2007 were as follows- Rupees in thousands a) Acquisition of shares of Cairn India Holdings Limited from Cairn UK Holdings Limited 59,580,837 b) Exploration and Development expenses 5,853,305 c) General corporate purposes 50,685 d) Issue expenses 1,599,619 For and on behalf of the BoardPlace: Gurgaon Rahul DhirDate: 25 October 2007 Managing Director and Chief Executive Officer Enquiries to: Analysts/Investors Anurag Mantri, Investor Relations Manager +91 9810301321 Media David Nisbet, Director, Corporate Communications +91 9910694336 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 69% shareholding in Cairn India Limited. O Cairn India is currently focused on exploration and production in Indiawhere it has a working interest in 15 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 gasDST drill stem testEOR 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 NorthernRajasthan 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 thereservoir rock encountered in the recent Kameshwari West discoveries. The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbliis 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 Exchange

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