27th Mar 2007 07:03
Cairn Energy PLC27 March 2007 EMBARGOED FOR RELEASE AT 0700 27 March 2007 CAIRN ENERGY PLC PRELIMINARY RESULTS ANNOUNCEMENT HIGHLIGHTS CORPORATE • IPO of Cairn India completed in January 2007 raising $1.98bn• Return of £3 per share to Cairn Energy PLC shareholders to be completed in April 2007• IPO proceeds of $600m retained by Cairn India - $300m available to Capricorn OPERATIONAL • Gross operated production 105,028 boepd (entitlement 24,523 boepd) India • Rajasthan midstream solution progressing well - alignment with ONGC on pipeline evacuation, subject to Government of India (GoI) approval• Rajasthan oil in place in excess of 3.6 billion barrels• Rajasthan planned production of 150,000 bopd, including increased Bhagyam production plateau target of 40,000 bopd• EOR potential for recovery increase and plateau extension• First oil production from Mangala on schedule for 2009 Bangladesh • Drilling operations ongoing in Bangladesh - separate potentially high impact exploration campaign planned for late 2007/early 2008• Final Sangu gross booked reserves reduction of 213 bscf (increased from the 187 bscf reduction announced in January 2007) Nepal • Agreement to acquire 100% interest in Blocks 3 and 5, subject to required consents • Seismic field operations planned to commence early 2008 FINANCIAL • Average entitlement production 24,523 boepd (2005: 28,240 boepd)• Cash generated from operations $207.2m (2005: $139.6m)• Exceptional oil and gas write off $71.5m, relating to impairment on Sangu• Loss for the year of $82.0m (2005 profit: $79.1m)• Net cash at year end of $701.3m (2005: $95.5m), including $751.8m raised in pre IPO placing• Expected gain of $1.1bn on IPO to be reported in 2007 Sir Bill Gammell, Chief Executive said: "Cairn has undergone an extensive restructuring of its business with the IPO ofCairn India and the formation of Capricorn. We continue to be focused on delivering the Rajasthan development and ensuringthe upstream project remains on track to produce first oil in 2009. Cairn India is aligned with its joint venture partner ONGC and intends to becomean active participant in midstream activities with a view to optimising valuefrom its exposure to the entire production and oil sales chain. We are actively evaluating growth opportunities for Capricorn." Enquiries to:Analysts/InvestorsBill Gammell, Chief ExecutiveJann Brown, Finance Director Tel: 0131 475 3000Mike Watts, Exploration & New Business Director Media Tel: 0207 404 5959Brunswick Group LLP:Patrick Handley, Mark Antelme, Phoebe Buckland Cairn India Media EnquiriesDavid Nisbet Tel: 00 91 99 1048 7715 Interviews with Sir Bill Gammell, Chief Executive of Cairn Energy PLC, and RahulDhir, Chief Executive Cairn India Limited, in video/audio and text are nowavailable at http://www.cairn-energy.plc.uk/ www.cairnindia.com and atwww.cantos.com Cairn Energy Live Audio Webcast The webcast of the 2006 preliminary results presentation will be available at0900 (UK time) on Tuesday 27 March 2007. This will be available at the Cairn Energy PLC and Cairn India websites:www.cairn-energy.plc.uk and www.cairnindia.com An archived version of the webcast will be available later. These materials contain forward-looking statements regarding Cairn, 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 undertakes no obligation to revise any suchforward-looking statements to reflect any changes in Cairn's expectations withregard thereto or any change in circumstances or events after the date hereof. CHAIRMAN'S STATEMENT Corporate Overview The last year has been momentous for Cairn as it set about creating anautonomous business in India (Cairn India) and a separate company (Capricorn)based in Edinburgh and more focused on exploration. Cairn Energy PLC continuesto be the parent company of each of these businesses. The flotation and listing of Cairn India on the Bombay Stock Exchange and theNational Stock Exchange of India was successfully completed on 9 January 2007raising a total of $1.98bn and leaving Cairn with a holding of 69% in CairnIndia. From the funds raised, approximately $940m is being returned to existingCairn shareholders, representing £3 per share. A further $600m has been retainedto fund ongoing working capital requirements in Cairn India. The balance ofaround $300m, after fees of the transaction and debt repayment, is beingretained by Cairn and is therefore available for potential investment in newbusiness opportunities. The IPO of Cairn India was the largest IPO to date in the Indian primary equitymarkets and Cairn India currently has a market capitalisation in excess of $5billion, ranking it the fourth largest oil and gas company in India. The IPOattracted a number of high quality investors (including PETRONAS, which holds10%) thereby signifying investor confidence in the Indian equity story, theregulatory environment and the capital markets. Cairn India is committed tocontinuing investment in India and is very much focused on creating shareholdervalue by developing its world class resource base in Rajasthan and seeking tocontinue Cairn's track record of exploration success. As previously announced, all of the assets not transferred to Cairn India in theIPO - those in Bangladesh, Nepal and certain exploration interests in northernIndia - have been brought under Capricorn, which is currently a wholly ownedsubsidiary of Cairn. The balance of proceeds raised in the IPO which are notbeing returned to shareholders have been retained to support the growth ofCapricorn, with the aim of creating further value for shareholders in thefuture. The Group continues to be well placed financially with a strong balance sheet,positive operating cash flows, a $850m syndicated revolving credit facility, andcash generated from the flotation of the Indian business to drive forward theRajasthan development and pursue opportunities in other business areas. Staff The IPO was completed in less than 10 months from inception to execution and themanner in which Cairn's staff dealt with not only the restructuring of thebusiness but also the additional workload of this complex transaction is atestament to their dedication and efficiency. In recognition of the fact that a significant part of Cairn India's futureoperations will be focused on Rajasthan, a new Indian headquarters has beenestablished at Gurgaon on the outskirts of Delhi. Cairn's original Indianheadquarters, in Chennai, Tamil Nadu has now closed. This has necessitated therelocation of a number of Cairn staff and their families and I would like tothank them for their ongoing support. Cairn Energy PLC (and Capricorn) will continue to be run from Edinburgh withoperational offices in Dhaka and Chittagong. In addition, Cairn has recentlyopened an office in Kathmandu to support its proposed operational activities inNepal. The Cairn Board held two meetings in India during 2006 and heard at first handabout the support work carried out in Rajasthan during the floods that affectedthe region in 2006. We also continued our numerous community programmes in all of our operationalareas across South Asia. Outlook The restructuring of Cairn's activities into two separate businesses means thateach of these businesses is now positioned more effectively to pursue theirrespective strategies. Cairn India will focus on delivering the very significant future cash flowsassociated with production from the Rajasthan discoveries, while also maximisingnew investment opportunities in the rapidly growing Indian market. In parallel with this and by using its established exploration and transactionexpertise, Capricorn will continue to follow a strategy of seeking to addshareholder value through material growth. Norman Murray Chairman, 27 March 2007 CHIEF EXECUTIVE'S REVIEW Overview Just over three years ago Cairn made the transformational discovery of Mangalain Rajasthan. Following successful completion of the IPO in January 2007 and itsestablishment as an autonomous business, Cairn India is well placed to move thatdiscovery and others in Rajasthan forward in preparation for first oilproduction in 2009. In parallel with this, Capricorn is examining a number of opportunities forgrowth. India The IPO of Cairn India is a natural evolution of our business, building on thedecade of remarkable achievement that Cairn has had in South Asia. Thesuccessful completion of the IPO has created an autonomous business with anexperienced management team capable of developing and building on our worldclass assets in India. Cairn India's oil and gas fields at Ravva and CB/OS-2 continue to be thecornerstone of its existing production. During 2006 both of these assetsbenefited from revised gas prices and improved oil production. An ongoingdrilling programme at Ravva and new developments planned on CB/OS-2 will ensurethat these assets continue to underpin Cairn India's activites elsewhere inIndia. A step change in production is expected from 2009, when the first of theRajasthan developments is scheduled to come onstream. The Mangala field will bebrought on production first followed by the Bhagyam and Aishwariya fields andthe targeted gross production from these three fields is 150,000 bopd. Onceonstream, these fields will create enormous value for the GoI, the RajasthanState Government and for investors and other stakeholders in both Cairn andCairn India. Laboratory studies have indicated that the early application of enhanced oilrecovery (EOR) techniques on the Mangala and Bhagyam fields is expected toextend significantly the production plateau and ultimate reserves for thesefields. Further work is also planned to determine the best method of extractingthe oil from the potentially productive Barmer Hill formation. India's exploration potential is huge, with the majority of the 26 hydrocarbonbasins in the country being under-explored. Cairn India has recently secured twonew exploration blocks in the NELP VI licensing round and now has an interest ina total of 15 blocks in India. Cairn India is well placed to build on this assetbase and to bid for further exploration acreage that may be offered in futurelicensing rounds. Rajasthan Upstream The upstream picture in Rajasthan is progressing well. Current estimates for theproven and probable (2P) hydrocarbons in place for the six fields Mangala,Bhagyam, Aishwariya, Saraswati, Raageshwari Oil and Raageshwari Deep Gas total2.2 billion boe and the associated 2P reserves plus contingent resources are 864million boe. The additional smaller and/or low permeability fields and reservoirs have anestimated 2P hydrocarbons in place volume of more than 1.4 billion boe. Over thecoming years, Cairn India's focus will be on converting as much of thiscontingent resource base into 2P reserves as is economically possible. In this regard, work is also ongoing to establish optimal EOR techniques in theRajasthan block to extend plateau production and maximise recovery factors.Laboratory work is currently underway to establish the potential of thesetechnologies, particularly in relation to how they can be used in Mangala andBhagyam, the largest of the Rajasthan fields. The first phase of development drilling on Saraswati has been completed anddevelopment drilling is now underway on Raageshwari. Development drilling onMangala is scheduled to commence in 2008. The GoI has approved the Declaration of Commerciality for Bhagyam, the secondlargest field in Block RJ-ON-90/1, along with the Shakti field. FDPs for Bhagyamand Shakti are expected to be submitted to the GoI in Q2 2007. Rajasthan Midstream Cairn India is aligned with its joint venture partner ONGC on a midstreamsolution and intends to become an active participant in midstream activitieswith a view to optimising value from its exposure to the entire production andoil sales chain. Through third party discussions and studies relating to the evacuation of thecrude, Cairn India now has a comprehensive understanding of the constructionschedule for a pipeline from the fields in Rajasthan. Specialist consultingengineers have been retained to help develop this knowledge base further and toassist Cairn India in addressing the associated technical and commercial issuesinvolved. A proposal is currently being prepared for submission to the GoI seekingapproval to include within the FDP a pipeline to transport Rajasthan crude fromMangala to a coastal terminal facility. The proposed routing of the pipelinewill allow access to the existing pipeline infrastructure and refinery network,with a final coastal delivery point that also affords access to the majority ofIndia's refining capacity. It is proposed that the pipeline will fall within thedefinition of the field development activities and will accordingly be funded70% by Cairn India and 30% by ONGC. If the pipeline is included in the FDP, thecosts would be recoverable under the PSC. The conceptual engineering and routeidentification for the pipeline are at an advanced stage. Cairn India and ONGC are continuing discussions on the approach to pricing ofthe Rajasthan crude. Rajasthan Project Funding Cairn India's funding for the initial upstream development will be provided fromongoing cash generation, its retained proceeds of the IPO ($600m) and specificbanking facility ($850m). Funding for the midstream pipeline can also largely bemet from these sources. Once the Mangala oil field is onstream subsequentdevelopment phases will be funded out of the resultant cash flows and borrowingsunder the facility. Bangladesh A planned three well offshore drilling campaign in Bangladesh commenced inJanuary 2007 and is ongoing. However, due to operational delays the third wellin the sequence - an exploration well on the Hatia prospect - will now not bedrilled in the current weather window. A separate high impact explorationcampaign targeting both the Hatia and Magnama prospects is being planned forlate 2007/early 2008. The first well drilled in the current programme was a down-dip appraisal well onthe South Sangu field, which unfortunately encountered a gas water contact inthe main reservoir. The gas volumes associated with South Sangu are nowconsidered to be non-commercial and it has been decided not to proceed with itsdevelopment. Present drilling operations are focused on a Sangu infill development well(Sangu-10). The principal objective of the Sangu-10 well is to test apotentially undrained compartment in the main Sangu field. At the time of theJanuary 2007 operational update, it was expected that the results of Sangu-10would be known by the time of the preliminary results announcement. However,operational delays have meant that the results of this well are not yetavailable. It has therefore been decided to reclassify 88 bscf of the 100 bscfattributable to the success case from the 2P to the 3P category to reflect fullythe risk that this compartment may be partially drained. This has had the effectof increasing the gross Sangu reserves reduction to 213 bscf compared to the 187bscf announced in the January 2007 operational update. The Sangu gas field, although now in decline, has produced in excess of 400 bscfsince commencement of production in 1998. To date, the Sangu joint venture hasgenerated gross revenue in excess of $830m. Results and Financial Performance Production for the year, on an entitlement interest basis, has decreased by 13%to 24,523 boepd (2005: 28,240 boepd). This is primarily due to reduced grossfield production at Sangu with entitlement further impacted by reduceddevelopment expenditure incurred in 2006. A breakdown of production is shown inthe table in the Operational Review on page 16. The Group's production mix continues to be gas biased (approximately 73% on anentitlement basis). This, combined with contractual gas price caps, resulted inan average price realised by the Group for the year of $31.84 per boe (2005:$25.44 per boe). The increase was mainly due to higher oil prices achieved.Cairn's exposure to world oil prices will increase significantly when productioncommences from Rajasthan. Revenue for the year was $286.3m (2005: $262.6m). Operating profit (pre exceptional items) and operating cash flows were $6.9m and$207.2m respectively (2005: $55.6m and $139.6m). The Group made a loss after taxof $82.0m (2005 profit: $79.1m), mainly due to the exceptional oil and gas writedown of $71.5m as a result of the downward reserves revision on Sangu. On 9 January 2007, Cairn's Indian business was floated on the Bombay StockExchange and the National Stock Exchange of India, pursuant to Cairn's strategyof increasing the autonomy of that business and of realising value forshareholders. The total proceeds raised in the flotation were $1.98bn and on 27 February 2007,the Company announced the proposed return of £481m (approximately $940m) of thiscash to shareholders of Cairn Energy PLC (equivalent to £3 per share). CairnIndia has retained $600m, with the remainder of the proceeds currently beingheld to fund Cairn's ongoing business held by its wholly owned subsidiaryCapricorn. This provides financial flexibility to support the growth ofCapricorn, with the aim of creating and realising further value for shareholdersin the future. The expected $1.1bn gain on disposal of the 31% interest in Cairn India in theIPO will be included in the results for 2007. The Group signed a $1bn syndicated revolving credit facility on 27 June 2006($845m unutilised at 31 December 2006). Following the IPO, the $150m corporatefacility was cancelled and the remaining $850m transferred to Cairn India tofinance the Rajasthan development. At the year end the Group had net cash of $701.3m, including funds raised in thepre IPO placing of $751.8m (2005: net cash $95.5m). Sir Bill Gammell Chief Executive, 27 March 2007 OPERATIONAL REVIEW Cairn's gross operated production across South Asia during 2006 was 105,028boepd (net entitlement 24,523 boepd). Operational activity has been largely focused on the continued appraisal ofBlock RJ-ON-90/1 in Rajasthan. There are now a total of 20 discoveries in thisblock including the world class Mangala and Bhagyam oil fields in the northernpart of the acreage. FDPs have been approved or are pending on 6 of these 20discoveries. An independent report prepared by DeGolyer and McNaughton in August 2006estimates 3.4 billion boe in place in the combined discoveries in the Rajasthanblock. Cairn currently estimates there to be at least 3.6 billion boehydrocarbons in place, of which 2.2 billion are under active developmentplanning, with the remaining 1.4 billion identified in other fields underreview. The Mangala, Aishwariya, Saraswati, Raageshwari Oil and Raageshwari Deep Gasfields all have GoI development approval, while work on approvals for thedevelopment of other discoveries, in particular Bhagyam and Shakti, is ongoing.It is planned to submit FDPs for Bhagyam and Shakti in Q2 2007. The remainingdiscoveries require further appraisal or evaluation. Ongoing drilling campaigns are taking place in Eastern India and Bangladeshwhile the other operated and non-operated exploration blocks in India andelsewhere in South Asia are at various stages of evaluation. RAJASTHAN BASIN - North West India Development Area (Cairn India 70% (Operator); ONGC 30%) Civil construction work is now underway to meet the planned first oil productionfrom Mangala in 2009. FDPs for the Mangala, Aishwariya, Saraswati andRaageshwari fields have been agreed by the GoI and, in addition to the retainedIPO proceeds, bank funding has been secured for the development. The first phaseof development drilling on Saraswati has been completed and development drillingis now underway on the Raageshwari Oil field. All the permits and permissions required to begin major construction work havebeen granted and Cairn India is in the process of procuring the major items oflong lead equipment required to establish the production facilities. It isplanned to contract three purpose built rigs which will be used to drill thedevelopment wells. These state of the art rigs will allow the drilling of theMangala wells (some horizontal) and running completions which Cairn Indiaintends to use to deliver the first phase of the target production rate of150,000 bopd for the Rajasthan fields. The detailed engineering design for the Mangala development is progressing inHouston; the design team comprises Cairn India personnel working alongsideconsultants from Mustang Engineering. The assessment of the impact of the severeflooding in Rajasthan last year on field development design and activities isongoing. Work carried out to date confirms the future viability of the currentdesign and facilities locations provided that reasonable flood protectionmeasures are implemented as a contingency (these are currently being designed). The GoI has approved the Declaration of Commerciality for Bhagyam, the secondlargest field in Block RJ-ON-90/1, along with the Shakti field. These fields arecontained within a second development area of 430 km2. It is currentlyanticipated that the final FDPs for Bhagyam and Shakti will be submitted to theGoI in Q2 2007. The current 2P base case for Bhagyam envisages a plateauproduction rate of 40,000 bopd. Two more recent small scale discoveries (Shakti North East and N-1-North) havebeen retained within the Bhagyam/Shakti development area, together with the N-I,N-E, N-P and Bhagyam South discoveries. Enhanced Oil Recovery Work is also ongoing to establish optimal EOR techniques in the Rajasthan blockwith a view to extending plateau production and increasing ultimate recovery ofoil. Laboratory work is currently underway to establish the potential of thesetechnologies to facilitate early implementation of a field scale pilot projectat Mangala, the largest of the Rajasthan fields. Northern Appraisal Area (Cairn India 100%) In June 2005, Cairn was granted an 18 month extension (until 14 November 2006)to complete its activities in the northern appraisal area to the north and westof the Development Area. However, the work programme in this area wasinterrupted by the severe flooding in Rajasthan in 2006. Cairn India has ceasedoperations in this area and is in discussions with the GoI for a furtherextension of part of this acreage to complete its planned work programme. As at31 December 2006, expenditure incurred in this area was approximately $24m. Reservoir Stimulation Programme A programme of hydraulic fracture stimulation on various lower permeabilityreservoirs was completed in 2006. The hydraulic fracture programme highlightedthe potential for new reserves in the lower permeability reservoirs. Thecurrently estimated hydrocarbons in place associated with these reservoirs is inexcess of 1 billion boe. Test results from two Barmer Hill wells highlighted the potential to unlockmaterial oil resources in this reservoir at two of the three main fields.Additional work is required to quantify the potential of the Barmer Hillformation and will be addressed during the development drilling programme atMangala and Aishwariya. Results on the Raageshwari deep gas field from a single tested zone inRaageshwari-5 indicated a two-fold increase in productivity. Gas from theRaageshwari wells will be utilised as fuel for the Mangala development andsubsequent northern area developments. The Vijaya, Vandana, N-R and southern fields are also potential candidates forfuture fracture stimulation to access new reserves and/or accelerate production. Southern Fields In the south of the Rajasthan block, first commercial production by truckingfrom the Saraswati field is ready to start and will begin as soon as anarrangement for oil sales has been finalised with the GoI. First commercialproduction from the Raageshwari oil field is expected to commence within 12months of Saraswati. The first phase of development drilling has recently beensuccessfully completed at Saraswati and development drilling is currentlyunderway in Raageshwari. Block RJ-0NN-2003/1 (Cairn India 30%, ENI Operator) In early Janauary 2007, the operator commenced acquisition of a 3D seismicsurvey on this Rajasthan block, which was awarded in NELP V. 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 the year 2006 was21,176 boepd, including 3,452 bopd. The gas sales contracts (GSCs) with the buyers (GTCL and GPEC) have beensuccessfully re-negotiated whereby the contractual terms for volume commitmentand price have been reset and the Gauri gas field volume committed to thecurrent buyers under the new pricing scheme. The CB/OS-2 joint venture is focused on further development of the field with aplanned offshore four well infill development drilling programme and also theconversion of three wells into oil producing wells following the continuingsuccess of the Gauri-3 oil producer. The infill development drilling programmeis scheduled to commence in H2 2007. Engineering studies to upgrade the oil handling facilities at Gauri to 9,000bopd have been completed and this upgrade is scheduled for completion in Q32007. During 2006 oil sales to private buyers from Gauri averaged 3,452 bopd. The onshore CB-X well has been completed and the pipeline installation is inprogress to deliver planned first gas in Q2 2007. CB-ONN-2001/1 (Cairn India 30%, ONGC Operator) Following the acquisition of an 89 km2 3D seismic programme two wells weredrilled on this block in 2006 - one encountered sub-commercial quantities of oiland the other was dry. One further well is currently operating prior to making adecision on whether to proceed to the next phase. CB-ONN-2002/1 (Cairn India 30%, ONGC Operator) Following the acquisition of a 100 km2 3D seismic programme on this block, threewells are scheduled to be drilled during 2007. GS-OSN-2003/1 (Cairn India 49%, ONGC Operator) The operator is currently acquiring a 3D marine seismic programme on this block. KRISHNA-GODAVARI BASIN - Eastern India Ravva (Cairn India 22.5% (Operator)) Average gross production from the Ravva field for the year 2006 was 61,595 boepd(comprising average oil production of 49,695 bopd and average gas production of71.4 mmscfd). The ceiling prices under each of the Ravva GSCs have been increased followingre-negotiation with the buyer (GAIL). The ceiling price for associated gas hasincreased by 18% and the ceiling price for non-associated gas has increased by30%. An onshore exploration well (RX-9), spudded in June 2006, was plugged andabandoned after encountering non-commercial quantities of hydrocarbons. An extensive offshore infill, appraisal and exploration drilling programme onRavva commenced in October 2006. The first appraisal well (RD-7) encountered oiland gas in the main producing intervals at Ravva with 38 metres of net oil pay.The second well (RD-8), an appraisal well on one of the main Ravva fault blocks,encountered 16 m net oil pay. In addition a 3.5 metres thick unprognosed sandwas encountered in an oil leg in RD-8. Production from RD-7 commenced inDecember 2006 and from RD-8 in January 2007. The RC-5 well has been completed and commenced production in March 2007. Asubsequent workover well on RC-3 was also successfully carried out in March2007. The rig is currently operating on a further infill well (RE-4). Two exploration prospects (MM 301 & LM 403) are scheduled to be drilled in Q22007. KG-DWN-98/2 (Cairn India 10%, ONGC (Operator)) Three exploration wells were drilled in water depths of 600 metres to 1200metres during 2006. Two discovered gas, one of which flowed at a rate ofapproximately 9 mmscfd and the third was dry. In addition, 1,208 km2 of 3DQ-marine seismic data was acquired on this block. The UD-1 ultra-deep water exploration well, located 140 km south of Ravva, wasspudded in late September 2006 in 2,841 metres water depth after the acquisitionand interpretation of an additional 255 km of 2D seismic data. The wellencountered gas in a secondary objective and options for further appraisal arecurrently under consideration. KG-ONN-2003/1 (Cairn India 49% ONGC (Operator)) Plans are underway to commence a seismic acquisition programme of 2D and 3D dataon this block in late 2007. NELP VI Cairn India has secured an interest in two new exploration blocks in India -PR-OSN-2004/1 and KK-DWN-2004/1 - in NELP VI. There was an unprecedented level of interest in this latest licensing round,with 165 bids submitted for 52 blocks and a total of 68 companies bidding, 20 ofwhich were foreign firms participating in NELP for the first time. To date, 80% of the 26 basins identified in India are under-explored and CairnIndia intends to apply for further acreage that may be offered in forthcominglicensing rounds. HIMALAYAN FORELAND BASIN - Northern India Ganga Valley GV-ONN-2002/1 (Cairn India 50% (Operator), Capricorn 50%) An aeromagnetic survey commenced in January 2007 and is expected to be completedin April 2007. This will be followed by a 2D seismic acquisition programme. GV-ONN-97/1 (Cairn India 15%, Capricorn 15%; ONGC Operator) The first exploration well in the Himalayan Foreland Basin in which Cairn Indiaand Capricorn participated (Tisua-1) was plugged and abandoned afterencountering residual oil shows. GV-ONN-2003/1 (Cairn India 24% (Operator), Capricorn 25%) Subject to receipt of the requisite approvals, a 2D seismic acquisitionprogramme is scheduled to commence in Q4 2007 or early 2008. VN-ONN-2003/1 (Cairn India 24% (Operator), Capricorn 25%) Seismic reprocessing is underway and a 2D seismic acquisition programme isexpected to commence in 2008. HIMALAYAN FORELAND BASIN - Nepal Blocks 1,2,4,6 & 7 (Capricorn 100% (Operator)) Assuming continued improvement in the political climate in Nepal, it isanticipated that Capricorn will be in a position to commence seismic fieldoperations in early 2008, subject to agreement with the Government to cease thecontractual force majeure currently in place in respect of these blocks. In addition, Capricorn has reached agreement with Texana for the acquisition ofa 100% interest in Blocks 3 and 5 in Nepal, subject to contract and requiredGovernment approvals. During 2006, a new office was established in Kathmandu in readiness for proposedoperational activity in country. BENGAL BASIN - Bangladesh Sangu (Capricorn 75% (Operator)) The Sangu gas field, although now in decline, has produced in excess of 400 bscfsince commencement of production in 1998. To date, the Sangu joint venture hasgenerated gross revenue in excess of $830m. A planned three well offshore drilling programme in Bangladesh commenced inJanuary 2007, comprising one appraisal well (South Sangu-3), one developmentwell (Sangu-10, which is targeted at a potentially undrained compartment in themain Sangu field) and one exploration well (Hatia-1). South Sangu-3 encountered non-commercial quantities of gas and was plugged andabandoned. The South Sangu discovery will now not be developed. The Sangu-10 well is currently operating behind schedule and as a result, theHatia-1 exploration well cannot be drilled in the current weather window. Aseparate potentially high impact exploration drilling campaign targeting boththe Hatia and Magnama prospects is therefore being planned for late 2007/early2008. In addition to the above, well intervention work has been undertaken on some ofthe existing producing wells at Sangu, increasing production by approximately10%. Blocks 5 & 10 (Capricorn 90% (Operator)). A 392 km 2D seismic survey has recently been completed on Block 10 and a further296 km 2D survey has been completed on Block 5. Processing of this data is closeto completion. Block 7 (Capricorn 45%) A 2D seismic survey of 1,054 km was acquired during 2006 and evaluation of thepotential of this block is ongoing. GROUP PRODUCTION The Group's average entitlement production for 2006 was 24,523 boepd net toCairn compared to 28,240 boepd in 2005. Gross field 61,595 21,176 22,257 105,028Working interest 13,859 8,470 16,693 39,022Entitlement interest 6,504 8,088 9,931 24,523 Cairn's current production is 73% gas: 27% oil. This high gas weighting,combined with contractual caps on the gas price received means that the averageprice per boe in 2006 was $31.84. On commencement of oil production fromRajasthan, the majority of Group production will be oil (currently estimated tobe approximately 90%). As a direct consequence of this, the Group will becomemuch more highly geared to prevailing world oil prices. GROUP RESERVES The table below shows reserves information at the end of 2006 on an entitlementbasis for the Group. For accounting and reserves purposes, the Group has used anoil price assumption of $30 per bbl (real) (2005: $20 per bbl). Reserves Produced in Additions in Revisions in Reserves 2006 2006 2006 31.12.05 mmboe mmboe mmboe 31.12.06 mmboe mmboeIndia 208.4 (5.3) 0.1 (17.5) 185.7Bangladesh 29.5 (3.6) 0.0 (15.6) 10.3 Total 237.9 (8.9) 0.1 (33.1) 196.0 On a direct working interest basis, reserves as at 31 December 2006 totalled230.5 mmboe (2005: 275.7 mmboe), comprising 216.0 mmboe in India and 14.5 mmboein Bangladesh. India Reserves FDPs for the Mangala, Aishwariya, Saraswati and Raageshwari fields have beenapproved by the GoI and the associated net entitlement 2P reserves until 2020for Mangala, Saraswati and Raageshwari were booked in 2005. The current proposeddevelopment sequence for the Rajasthan northern fields is Mangala, Bhagyam andAishwariya. The timing of the Aishwariya investment is dependent on the timingof the Bhagyam development, so a decision on the booking of the Aishwariyareserves will be deferred until the Bhagyam FDP and associated expenditure havebeen approved. It is planned to submit FDPs for Bhagyam and Shakti to the GoI inQ2 2007. The downward revision to India reserves of 17.5 mmboe in 2006 is mainly as aresult of the change in the Group's oil price assumption. Bangladesh Reserves Sangu gross proven and probable (2P) reserves have been reduced by a total of213 bscf. Of this, 69 bscf is attributable to poorer than predicted productionperformance from the field post the infill drilling programme in 2005, withanother 56 bscf being attributable to a decision to reclassify the reservesassociated with Sangu gas compression to the contingent resources category. Theremaining reduction of 88 bscf is associated with the reclassification from theprobable (2P) to the possible (3P) reserves category for the reasons set out inthe Chief Executive's Review on page 8. The impact of these adjustments is to reduce current estimated Sangu gross 2Pbooked reserves to 116 bscf (10.3 mmboe on a net entitlement basis), whichrepresents approximately 5% of the total estimated currently booked Groupreserves for 2006. FINANCIAL REVIEW Cairn continues to be well placed financially with a strong balance sheet,positive operating cash flows, a $850m syndicated revolving credit facility, andcash generated from the flotation of the Indian business to drive forward theRajasthan development and pursue opportunities in other business areas. Key financial performance indicators 2006 2005 % Increase/ (Decrease)Production (boepd)* 24,523 28,240 (13.2)Average price per boe ($) 31.84 25.44 25.2Revenue ($m) 286.3 262.6 9.0Average production costs per boe ($) 6.36 4.87 30.6Operating profit pre exceptional items 6.9 55.6 (87.6)Exceptional items **(71.5) 15.3 (567.3)(Loss)/profit before tax ($m) (90.6) 101.2 (189.5)(Loss)/profit after tax ($m) (82.0) 79.1 (203.7)Cash generated from operations ($m) 207.2 139.6 48.4Net assets ($m) 681.2 757.6 (10.1)Net cash ($m) ***701.3 95.5 634.3 * on an entitlement interest basis ** relates to impairment on Sangu *** includes $751.8m raised in pre IPO placing PROFIT AND LOSS Turnover Production for the year on an entitlement interest basis has decreased by 13% to24,523 boepd (2005: 28,240 boepd). This is primarily due to reduced gross fieldproduction at Sangu, with entitlement also impacted by reduced developmentexpenditure incurred in 2006. The Group's production mix continues to be gas biased (approximately 73% on anentitlement basis) with contractual caps on the prices realised. This results inan average price realised by the Group for the year of $31.84 per boe (2005:$25.44 per boe). The increase is due to a higher oil price environment and arevision of the pricing for gas sold from Ravva and CB/OS-2. Revenue for the year was $286.3m (2005: $262.6m). Gross Profit Cost of sales for the year was $222.4m (2005: $168.8m). This includes a writeoff of unsuccessful exploration costs and general exploration expenditures of$62.0m (2005: $26.9m) in accordance with the Group's successful efforts basedaccounting policies. The increase is partly due to the write off of expenditureon relinquished areas in Rajasthan. Production costs for the year were $56.9m (2005: $50.2m) with the increase duemainly to stock movements. Production costs for 2006 were $6.36 per boe comparedto $4.87 per boe in 2005. Production costs also include pre-exploration coststhat are expensed. The average Group rate for depletion and decommissioning has increased by 29.9%to $11.56 per boe (2005: $8.90 per boe), mainly as a result of the downwardreserves revision at the year end for Sangu as outlined in the Chief Executive'sReview on page 8. The Group generated a gross profit of $63.9m (2005: $93.7m). Profit for the Year Administrative expenses for the year were $60.3m (2005: $41.2m). This includes acharge of $18.5m (2005: $10.0m) for share based payments in accordance with IFRS2 (including IPO related awards to certain senior executives of Cairn India) andassociated national insurance contributions. Administrative expenses were alsoincreased by one-off reorganisation costs in connection with the IPO. Net finance costs for the year were $26.0m (2005: net finance income $30.3m),including a foreign currency exchange loss of $13.0m (2005: gain $27.1m) and a$9.7m (2005: nil) fair value charge in respect of foreign exchange optionsentered into to manage the currency exposure on funds raised in the IPO, whichhave since been unwound. Realised exchange rate losses arose primarily due tothe treatment under IFRS of exchange movements on intra-group funding arisingfrom the weakening of the US dollar against Sterling in the year. The $8.6m tax credit (2005: $22.1m charge) arises principally due to theexceptional oil and gas write down, increased depletion and decommissioningcharges and the write off of unsuccessful exploration costs, all of which reducethe deferred tax provision. Exceptional Items The exceptional oil and gas write down of $71.5m relates to impairment on Sanguarising under IAS 36 due to the downward reserves revision at the year end (asoutlined in the Chief Executive's Review on page 8). The prior year exceptionalgain of $15.3m relates to the gain arising on the sale of assets to ONGC. After the exceptional charge, the Group made a loss for the year of $82.0m(2005: profit $79.1m). BALANCE SHEET Capital expenditure Capital expenditure during the year was $284.0m, comprising $161.0m onexploration/appraisal activities, $110.5m on development activities and $12.5mon other fixed assets (2005: $241.8m - $193.1m exploration/appraisal, $41.0mdevelopment and $7.7m other). The exploration/appraisal expenditure during theyear relates principally to the continued drilling programme in Rajasthan. Themajority of the development expenditure was pre-development expenditure onRajasthan. Further development expenditure was incurred on Ravva and Sangupursuant to the drilling activites detailed in the Operational Review. CASH FLOW Cash flows from operating activities Cash generated from Group operations increased to $207.2m (2005: $139.6m).Interest paid was $5.6m (2005: $1.2m). Tax payments during 2006 were $12.2m(2005: $6.6m). Cash flows from investing activities Cash outflow from capital expenditure during the year was $281.6m, made up of$157.5m exploration/appraisal expenditure, $115.0m development expenditure and$9.1m other expenditure. (2005: $290.9m - $218.3m exploration/appraisal, $64.9mdevelopment and $7.7m other). Pre IPO placing proceeds of $751.8m were receivedprior to the year end and are also included in deferred income. The balance ofthe proceeds were received in 2007. Cash flows from financing activities Purchases of own shares by the ESOP Trust during the year were $21.7m (2005:$17.2m). Arrangement and facility fees were $17.1m (2005: nil). Net assets/net funds Net assets at 31 December 2006 were $681.2m (2005: $757.6m). At the year end,the Group had net cash of $701.3m, including $751.8m raised in the pre IPOplacing (2005: net cash $95.5m). The Group signed a $1bn syndicated revolving credit facility on 27 June 2006($845m unutilised at 31 December 2006). On 22 November 2006, an amendmentagreement was signed, which became effective on 31 January 2007, to cancel the$150m corporate facility and transfer the remaining $850m to Cairn India tofinance the Rajasthan development. Drawings under the facility are based onLIBOR. IPO Transaction On 9 January 2007, the Group's Indian business was floated on the Bombay StockExchange and the National Stock Exchange of India, pursuant to Cairn's strategyof increasing the autonomy of that business and of realising value forshareholders. The total proceeds raised in the flotation were $1.98bn with $751.8m pre-IPOplacing funds included in net cash at the year end. On 27 February 2007, theCompany announced the proposed return of £481m (approximately $940m) of thiscash to shareholders of Cairn Energy PLC (equivalent to £3 per share). CairnIndia has retained $600m, with the remainder of the proceeds currently beingheld to fund Cairn's ongoing business held by its wholly owned subsidiaryCapricorn. This provides financial flexibility to support the growth ofCapricorn, with the aim of creating and realising further value for shareholdersin the future. The expected $1.1bn gain on disposal of the 31% interest in Cairn India in theIPO will be included in the results for 2007. I would like to take this opportunity to thank all of the staff and advisersinvolved in this unique and complex transaction for their hard work andcommitment, without which the IPO could not have been achieved in such a shorttimescale; a remarkable achievement. Jann Brown Finance Director, 27 March 2007 Cairn Energy PLC Group Income Statement For the year ended 31 December 2006 Group Group 2006 2005 $'000 $'000______________________________________________________________________________ Revenue 286,304 262,562 Cost of salesProduction costs (56,931) (50,235)Unsuccessful exploration costs (62,018) (26,867)Depletion and decommissioning charge (103,487) (91,740)______________________________________________________________________________Gross profit 63,868 93,720 Other operating income 3,340 3,116Administrative expenses (60,323) (41,204)Exceptional impairment of oil and gas (71,455) -assetsExceptional gain on sale of oil and gas assets - 15,272______________________________________________________________________________Operating (loss)/profit (64,570) 70,904 Finance income 4,603 32,543Finance costs (30,609) (2,236)______________________________________________________________________________ (Loss)/profit before taxation (90,576) 101,211Taxation credit/(expense) on (loss)/profit 8,559 (22,139)______________________________________________________________________________ (Loss)/profit for the year attributable to the equityholders of the parent (82,017) 79,072______________________________________________________________________________ Earnings per ordinary share - basic (cents) (52.02) 50.37Earnings per ordinary share - diluted (cents) (52.02) 50.10______________________________________________________________________________ Cairn Energy PLC Group Statement of Changes in Equity For the year ended 31 December 2006 Group Group 2006 2005 $'000 $'000______________________________________________________________________________ Opening equity 757,598 711,197Currency translation differences 10,725 (23,893)Capital reduction in subsidiary - -______________________________________________________________________________Total income/(expense) recognised directly in equity 10,725 (23,893)(Loss)/profit for the year (82,017) 79,072______________________________________________________________________________Total recognised income and expense for the year (71,292) 55,179______________________________________________________________________________New shares issued in respect of employee share options 3,219 3,782Share-based payments 13,304 4,592Cost of shares purchased (21,659) (17,152)______________________________________________________________________________Closing equity attributable to the equity holders 681,170 757,598______________________________________________________________________________ Cairn Energy PLC Group Balance Sheet As at 31 December 2006 Group Group 2006 2005 $'000 $'000______________________________________________________________________________Non-current assetsIntangible exploration/appraisal assets 419,239 321,855Property, plant & equipment - development/producing 394,010 456,929assetsProperty, plant & equipment - other 5,891 4,158Intangible assets - other 6,724 2,601Investments 96 96Deferred tax assets 18,911 2,606______________________________________________________________________________ 844,871 788,245______________________________________________________________________________Current assetsInventory 4,615 5,533Trade and other receivables 218,159 124,725Bank deposits - 20,000Cash and cash equivalents 856,266 75,509______________________________________________________________________________ 1,079,040 225,767______________________________________________________________________________Total assets 1,923,911 1,014,012______________________________________________________________________________ Current liabilitiesTrade and other payables 897,232 94,736Obligations under finance leases 1,380 -Provisions 6,845 -Derivative financial instruments 9,694 -Income tax liabilities 6,064 7,550______________________________________________________________________________ 921,215 102,286______________________________________________________________________________Non-current liabilitiesLoans and borrowings 155,000 -Obligations under finance leases 3,092 -Provisions 24,740 17,456Deferred tax liabilities 138,694 136,672______________________________________________________________________________ 321,526 154,128______________________________________________________________________________Total liabilities 1,242,741 256,414_______________________________________________________________________________Net assets 681,170 757,598______________________________________________________________________________EquityCalled-up share capital 25,870 25,775Share premium 201,019 197,895Shares held by ESOP Trust (55,756) (37,311)Foreign currency translation 2,798 (7,927)Other reserves 37,284 37,284Capital reserves - non distributable 45,331 45,331Capital reserves - distributable 178,429 178,429Retained earnings 246,195 318,122______________________________________________________________________________Total equity attributable to the equity holders 681,170 757,598______________________________________________________________________________ Cairn Energy PLC Group Statement of Cash Flows For the year ended 31 December 2006 Group Group 2006 2005 $'000 $'000______________________________________________________________________________ Cash flows from operating activitiesCash generated from/(used in) operations 207,199 139,621Interest paid (5,599) (1,201)Income tax paid (12,184) (6,563)______________________________________________________________________________Net cash generated from/(used in) operating activities 189,416 131,857______________________________________________________________________________ Cash flows from investing activitiesExpenditure on exploration/appraisal assets (157,535) (218,324)Expenditure on development/producing assets (114,995) (64,921)Purchase of property, plant & equipment - other (1,346) (4,079)Purchase of intangible assets - other (7,779) (3,623)Purchase of investments - -Proceeds on disposal of exploration/appraisal assets - 91,930Proceeds on disposal of development/producing assets - 35,574Proceeds on disposal of property, plant & equipment 20 95Movement in funds on bank deposit 20,000 (5,656)Interest received 5,568 4,378______________________________________________________________________________Net cash from/(used in) investing activities (256,067) (164,626)______________________________________________________________________________ Cash flows from financing activitiesPayments for IPO costs (23,276) -Proceeds from IPO pre-placement 751,849 -Arrangement and facility fees (17,074) -Proceeds from issue of shares 3,219 3,782Purchase of own shares (21,659) (17,152)Payment of finance lease liabilities (285) -Proceeds from borrowings 155,000 -______________________________________________________________________________Net cash flows from/(used in) financing activities 847,774 (13,370)______________________________________________________________________________ Net increase/(decrease) in cash and cash equivalents 781,123 (46,139)Opening cash and cash equivalents at beginning of year 75,509 122,961Exchange (losses) on cash and cash equivalents (366) (1,313)______________________________________________________________________________Closing cash and cash equivalents 856,266 75,509______________________________________________________________________________ Reconciliation of operating (loss)/profit to net cash inflow from operating activities Group Group 2006 2005 $'000 $'000 Operating (loss)/profit (64,570) 70,904Depletion, depreciation, decommissioning and amortisation 110,494 96,680Share based payments charge 13,304 4,592Inventory movement 918 (3,373)Trade receivables movement (7,037) (16,590)Trade payables movement 15,139 14,551Exceptional gain on sale of oil and gas assets - (15,272)Movement in other provisions 5,762 (39,048)Gain on sale of other non current assets (2) (41)Impairment write off 71,455 -Unsuccessful exploration costs 62,018 26,867Foreign exchange differences (282) 351______________________________________________________________________________ Net cash inflow from operating activities 207,199 139,621______________________________________________________________________________ Net Funds Group At 1 January Cash flow New Finance Exchange At 31 2006 Leases movements December 2006 $'000 $'000 $'000 $'000 $'000 Bank deposits 20,000 (20,000) - - -______________________________________________________________________________Bank deposits 20,000 (20,000) - - -______________________________________________________________________________Cash at bank 15,831 12,779 - (1,037) 27,573Short termdeposits 59,678 768,344 - 671 828,693______________________________________________________________________________Cash and cashequivalents 75,509 781,123 - (366) 856,266______________________________________________________________________________Bank loans - (155,000) - - (155,000)______________________________________________________________________________Net cash 95,509 606,123 - (366) 701,266______________________________________________________________________________Finance leases - 953 (5,432) 7 (4,472)______________________________________________________________________________Net funds 95,509 607,076 (5,432) (359) 696,794______________________________________________________________________________ The segment results for the year ended 31 December 2006 are as follows: Cairn India Capricorn Energy Other Group Limited Group Limited Group 2006 $'000 $'000 $'000 $'000Revenue from sale of oil,gas and condensate 221,956 63,753 - 285,709Tariff income 595 - - 595Total revenue 222,551 63,753 - 286,304 Cost of sales (143,751) (78,685) - (222,436) Gross profit 78,800 (14,932) - 63,868 Segmental operatingprofit/(loss) 119,725 (143,675) (40,620) (64,570) Cost of sales in thesegment results aboveincludes:Production costs 38,585 18,346 - 56,931Unsuccessful explorationcosts 56,650 5,368 - 62,018Depletion anddecommissioning charge 48,516 54,971 - 103,487 Other segment itemsincluded in the IncomeStatement are:Impairment of oil and gasassets - 71,455 - 71,455Depreciation 2,393 3 749 3,145Amortisation 2,242 - 1,620 3,862 The segment assets and liabilities as at 31 December 2006 and capitalexpenditure for the year then ended are as follows: Cairn India Limited Capricorn Energy Other Group Group Limited Group 2006 $'000 $'000 $'000 $'000 Assets 1,092,022 151,250 680,639 1,923,911 Liabilities 1,132,689 35,620 74,432 1,242,741 Capital expenditure 249,622 31,624 2,715 283,961 NOTES: 1. A proposed dividend of £481,000,000 (300p per share) (2005: nil) wasannounced on 27 February 2007 and was approved at an Extraordinary GeneralMeeting of Cairn Energy PLC on 22 March 2007. This dividend will be paid bymeans of a B Share structure with the new B shares being created on 26 March2007. The B Shares will not be listed on the Official List or admitted totrading on the London Stock Exchange. The proposed dividend is not included as aliability in these Accounts. There are no income tax consequences arising fromthis proposal for the Cairn group of companies. 2. The earnings per ordinary share is calculated on a loss of $82,017,000(2005: profit $79,072,000) and on a weighted average of 157,654,751 ordinaryshares (2005: 156,995,878). The weighted average of ordinary shares excludesshares held by the Cairn Energy PLC Employees' Share Trust. In respect of 2006,587,128 potential ordinary shares were anti-dilutive. The 2005 diluted earnings per ordinary share were calculated on a profit of$79,072,000 and on 157,841,207 ordinary shares being the basic weighted averageof 156,995,878 ordinary shares and the dilutive potential ordinary shares of845,329 ordinary shares relating to share options. 3. Accounting policies - Basis of preparation Cairn prepares its accounts in accordance with applicable InternationalFinancial Reporting Standards (IFRS) as adopted by the EU. 4. The financial information contained in this announcement does notconstitute statutory accounts as defined in Section 240 of the Companies Act1985. However, the financial statements contained in this announcement areextracted from the audited statutory accounts for the financial year ended 31December 2006, which will be delivered to the Registrar of Companies. 5. The directors have considered the factors relevant to support a statementon going concern. They have a reasonable expectation that the Group willcontinue in operational existence for the foreseeable future and have thereforeused the going concern basis in preparing the financial statements. 6. Full accounts are due to be posted to shareholders on Tuesday 17 April2007 and will be available at the Company's registered office, 50 Lothian Road,Edinburgh, EH3 9BY, from that date. 7. The Annual General Meeting is due to be held on Thursday 17 May 2007 at12.00 pm. GLOSSARY OF TERMS The following are the main terms and abbreviations used in this announcement: Corporate Board the Board of Directors of Cairn Energy PLCBSE Bombay Stock ExchangeCairn Cairn Energy PLC and/or its subsidiaries as appropriateCairn India Cairn India LimitedCapricorn Capricorn Energy LimitedCompany Cairn Energy PLCGAIL Gas Authority of India LimitedGoI Government of IndiaGPEC Gujarat Powergen Energy Company LimitedGroup the Company and its subsidiariesGSCs gas sales contractsGTCL Gujarat Gas Trading Company LimitedIPO initial public offering (of shares in Cairn India Limited)NELP New Exploration Licensing PolicyNELP V Fifth New Exploration Licensing Policy roundNELP VI Sixth New Exploration Licensing Policy roundNSE National Stock Exchange of India LimitedONGC Oil and Natural Gas Corporation LtdPETRONAS Petroliam Nasional Berhad Technical 2P proven plus probable3P 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 Accounting bn billionESOP Employee Share Ownership PlanIFRS International Financial Reporting StandardsIFRS 2 International Financial Reporting Standard 2 "Share-based Payment"IAS 36 International Accounting Standard 36 "Impairment of Assets"LIBOR London Inter-Bank Offered Ratem million$ United States Dollars This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Capricorn Energy PLC