26th Oct 2007 07:01
Cairn Energy PLC26 October 2007 EMBARGOED FOR RELEASE AT 0700 26 October 2007 CAIRN ENERGY PLC Part Disposal of Bangladesh Interest to Santos Cairn announces that its subsidiary Capricorn Energy Limited ("Capricorn")yesterday entered into a Sale and Purchase Agreement ("SPA") with SantosInternational Holdings Pty Limited ("Santos") for the sale of the whole of theissued share capital of Cairn Energy Bangladesh Limited ("CEBL"), a wholly ownedsubsidiary of Capricorn. Pursuant to the SPA, Santos is acquiring the following assets in Bangladesh: • a 37.5% interest in the Sangu Development Area ("SDA"); • a 37.5% interest in Block 16 exploration acreage; and • a 45% interest in exploration Blocks 5 and 10*. The consideration for the acquisition is US$50 million payable in cash atcompletion (the "Cash Consideration"), and also contingent payments of, inaggregate, US$20 million, payable in tranches dependent upon future developmentresulting from the current exploration drilling programme. Santos will also payits working interest in the current drilling programme. The proceeds of thetransaction will be used to fund Capricorn's ongoing exploration activities. For the six month period ended 30 June 2007 CEBL generated revenue of $15.3million and made a loss after tax of $12.8 million. As at 30 June 2007, CEBL'sgross assets were approximately $150 million. Capricorn's interests in Bangladesh following this transaction are as follows:- • a 37.5% operated interest in the SDA; • a 37.5% operated interest in Block 16 exploration acreage; • a 45% operated interest in exploration Blocks 5 and 10*; and • a 45% non-operated interest in exploration Block 7. Capricorn spudded an exploration well on the Magnama prospect offshore Block 16on 3 October and the well is currently operating. *see note 3 of Notes to Editors. Enquiries to: Analysts/InvestorsCapricorn Energy Limited:Mike Watts, Chief ExecutiveJann Brown, Finance DirectorSimon Thomson, Legal & Commercial Director Tel: 0131 475 3000 MediaBrunswick Group Limited:Patrick Handley, Mark Antelme, Phoebe Buckland Tel: 0207 404 5959 Notes to Editors: 1. Capricorn is a subsidiary of Cairn Energy PLC based in Edinburgh.Capricorn's current assets are located in Bangladesh, Nepal and Northern India. 2. Capricorn is focused on exploration and is currently assessing a numberof opportunities to grow its existing asset base. These include the recenttakeover offers for Plectrum Petroleum plc ("Plectrum") and medOil plc("medOil"), which were declared unconditional in all respects on 10 October 2007. As a result of these offers Capricorn is acquiring additional interests inTunisia, Peru, UK (West of Shetlands), Albania, Spain and Sicily. 3. The commencement of the exploration phases of the Production SharingContracts for Blocks 5 and 10 remains subject to final agreement with theGovernment of Bangladesh. 4. Santos is a major Australian oil and gas exploration and productioncompany with interests and operations in every Australian petroleum province andin Indonesia, Papua New Guinea, Vietnam, India, Kyrgyzstan and Egypt. Santos hasthe largest Australian exploration portfolio by area of any company and ispursuing new venture opportunities with a focus on Asia. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Capricorn Energy PLC