30th Jul 2007 12:39
Cairn Energy PLC30 July 2007 The attached release was issued today by Cairn India to the Bombay StockExchange and the National Stock Exchange of India. In accordance with its Indian reporting obligations, Cairn India has todayissued its Q207 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 will nextrelease group financial information to the UK market in its 2007 interim resultsannouncement on 11 September 2007. These consolidated results will be reportedin US$ under IFRS and will include the group's interest in Cairn India. Key differences between the financials prepared under Indian GAAP to those underIFRS are summarised in the table below: IGAAP IFRSAccountingpolicyExploration Unsuccessful and other Unsuccessful costs are writtenwrite off exploration costs (eg seismic) off; other exploration costs are(income are expensed as incurred capitalised pendingstatement) 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 incomeInterest income Included in other income Included in finance income Group Production The figures in the table below show group production for H1 2007 (including 100%of Cairn India's production). Production (boepd) Ravva CB/OS-2 Sangu Total Gross field 60,879 15,238 16,057 92,174Working interest 13,698 6,095 12,043 31,836Entitlement interest 7,204 5,654 9,628 22,486 Group production during H1 2007 was 68% gas: 32% oil and condensate. This highgas weighting, combined with the contractual caps on the gas price received,means that the average price per boe for the H1 2007 is approximately $34. On commencement of oil production from Rajasthan, the majority of Groupproduction will be oil (currently estimated to be approximately 90%). As adirect consequence of this, the Group will become much more highly geared toprevailing oil prices. Group Net Cash Group net cash at 30 June 2007 was approximately $850m (including 100% of CairnIndia's net cash balances; $526m). Group Accounting Cairn Energy PLC's consolidated accounts include the results of its subsidiaryundertakings (including Cairn India) to the balance sheet date. The 31% interestin Cairn India held by other shareholders is reflected as a minority interestadjustment. For Immediate Release 30 July 2007 Cairn India Limited (Consolidated) Second Quarter Results 2007 The following commentary is provided in respect of the unaudited financialresults and operational achievements of Cairn India Limited and its subsidiarycompanies (referred to as "Cairn India") during the second quarter of 2007. OPERATIONAL • Cairn India/ONGC agreement at Operating Committee on Rajasthan midstream solution - awaiting Government of India (GoI) approval • Rajasthan Northern Appraisal Area extension awarded - seismic infill programme completed and further drilling underway • Field Development Plan (FDP) for Bhagyam approved by Operating Committee - under review by Management Committee, awaiting approval • Ravva infill drilling campaign ongoing - four development wells and one exploration well completed • Cambay Basin (CB/OS-2) drilling programme to commence in H2 2007 - rigcontracted • Gross operated production for Q2 2007 77,392 barrels of oil equivalent per day (boepd) (working interest 19,775 boepd) FINANCIAL The gross production of the operating units for Q2 2007 was 77,392 boepd, a 3%increase over Q1 2007 (74,830 boepd). The working interest production is 19,775boepd in comparison to 19,811 boepd in the first quarter of 2007. "Cash flow from operations", worked out as profit after tax prior to non-cashexpenses (non-cash employee cost, depreciation, depletion, amortisation anddeferred tax) and exploration cost was Rs. 2,234 million (US$ 54.1 million) forthe quarter as compared to Rs.1,801 Million (US$ 40.8 million) in Q1 2007. Theincreased cash flow was due to higher revenues and operating efficiencies. Cash (net of borrowings) available as at 30th June 2007 was Rs. 21,423 million(US$526 million). The consolidated revenue of Cairn India Limited and its subsidiaries for thequarter ended 30th June 2007 was Rs. 2,433 million (US$ 59.0 million) a 3%increase over Q1 2007 (Rs. 2,364 million, US $50.87 million). The average oilprice realisation in Q2 2007 was higher at US$ 71.11/bbl as compared to Q1 2007realisation of US$ 61.04/bbl. The gas price realisation in Q2 2007 was $ 4.35/mscf (Q1 2007 - $ 4.07/mscf). Average price realisation per boe was US$ 50.45 inQ2 as compared to US$ 42.25 in Q1. The profit before tax and foreign exchange loss was Rs. 1,093 million (US$ 26.5million), a 32% increase over Q1 2007 (Rs. 831 million, US$ 18.8 million). The strengthening of the Indian Rupee against USD resulted in the companyrecognising an accounting loss due to foreign exchange fluctuation of Rs. 1,405million (US$ 34.5 million). This arises on account of the deposits held in USDollar by the foreign subsidiaries, which are intended to be used for capitalimports. In this current phase of project implementation, we would ordinarilyhold US Dollars to match our projected dollar outflows for capital expenditure. 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. In the period underreview, the foreign currency fluctuation loss arises on USD cash deposits heldmainly by one entity and, for tax computation purposes, is not available forsetoff against any operating profits. The consolidated net loss for the quarter ended 30th June 2007 was Rs. 714million (US$ 17.3 million) as compared to profit of Rs. 376 million (US$ 8.5million) in Q1 2007. • Amounts shown in US$ are converted based on an average exchange rate for the second quarter of 41.26 and closing exchange rate as at 30th June 2007 of 40.73 (average rate for Q1 2007 44.14 and average rate for H1 of 2007 42.70). Rahul Dhir Chief Executive Cairn India said: "Discussions on the midstream solution continue to progress well. We areconfident that the Government of India will support the proposal for Cairn India(as operator of the field) to build a pipeline to transport crude oil fromRajasthan. Our target for first oil remains 2009 and we continue to place orders for longlead items for the Mangala processing facilities." OPERATIONAL REVIEW Gross operated production in India for the second quarter of 2007 was 77,392boepd (19,775 working interest boepd). RAJASTHAN BASIN - North West India RJ-ON-90/1 Rajasthan Midstream Cairn India and ONGC have agreed at the Operating Committee to a solution forthe midstream. The proposal which is now awaiting approval by the GoI is toinclude within the FDP a pipeline to transport the Rajasthan crude from Mangalato a coastal location in Gujarat. The proposed routing of the pipeline willallow access to the existing pipeline infrastructure and refinery network, witha final coastal delivery point that also affords access to the majority of India's refining capacity. It is proposed that the pipeline will fall within thedefinition of the field development activities and will accordingly be funded bythe Joint Venture partners Cairn India and ONGC in proportion to theirparticipating interest (70% Cairn India; 30% ONGC). If the pipeline is includedin the FDP and approved by the GoI, the costs would be recoverable under thePSC. The conceptual engineering and route identification for the pipeline are atan advanced stage. Development Area (Cairn India 70%, Operator; ONGC 30%) The upstream project in Rajasthan is progressing well. The first phase ofdevelopment drilling on Saraswati and Raageshwari has been completedsuccessfully. Development drilling on Mangala is scheduled to commence in 2008. A 120 km2 3D seismic survey was completed over the Mangala field and processingof the data has started. An addendum to the Mangala FDP is currently underpreparation for submission to the GoI. All the permits and permissions required to begin major construction work havebeen granted. Civil construction work is ongoing to meet the planned first oilproduction from Mangala in 2009. The FDP for Bhagyam, the second largest field in Block RJ-ON-90/1, was approvedby the Operating Committee in May 2007 and has subsequently been submitted tothe Management Committee for approval. The current 2P reserves base case for Bhagyam envisages a plateau productionrate of 40,000 bopd. The Bhagyam and Shakti fields are contained within a seconddevelopment area of 430 km2. The Saraswati-Crest-1 exploration well, located approximately 0.8 km west ofSarasawati-3, was drilled in April 2007 and encountered two hydrocarbon bearingformations. Approximately 7 metres (m) of net pay was encountered in theDharvi-Dungar formation and approximately 4.5 m of net pay was encountered inthe Lower Barmer Hill. Enhanced Oil Recovery (EOR) Work is ongoing to confirm the optimal EOR techniques to implement in theRajasthan block, with the aim of increasing ultimate oil recovery and extendingthe production plateau periods for each field. A first phase of third partylaboratory studies of the techniques for chemical flooding (polymer, alkaline,surfactant, or combinations of these) has been completed for Mangala. Further laboratory studies on Mangala will now take place and simulation work isongoing. A pilot project to be implemented in 2009-10 is currently beingdesigned to demonstrate field-scale applicability of these techniques. Additonallaboratory work continues for Bhagyam, to be followed by work on Aishwariya. Northern Appraisal Area (Cairn India 100%) The Ministry of Oil and Natural Gas (MoPNG), has awarded a six month extensionto the Exploration Phase of the Northern Appraisal Area (NAA) of Rajasthanlicence RJ-ON-90/1 from 8 May 2007. Appraisal drilling on the discoveries made in 2006 (Kaameshwari West-2 andKaameshwari West-3) has begun. These discoveries have opened up a new play inthe Barmer Hill/Lower Dharvi Dungar sands on the western margin of the basin.While reservoir quality is variable, an appraisal programme is underway tofurther delineate these discoveries and explore the full potential of the NAA.The area is covered by an exploration 3D seismic grid of 530 km2 acquired in2006. The Kaameshwari 220 km2 appraisal 3D seismic programme started in July2007. A further 88 km 2D seismic grid has just recently been completed to theeast of Barmer. RJ-0NN-2003/1 (Cairn India 30%, ENI Operator) In early January 2007, the Operator commenced acquisition of a 3D seismic surveyon this Rajasthan block, which was awarded in the New Exploration LicensingPolicy (NELP) V round. The 622 km2 3D programme has been completed and iscurrently being processed by the Operator. CAMBAY BASIN - Western India CB/OS-2: Lakshmi and Gauri Gas Fields (Cairn India 40%, Operator) Average gross production from the Lakshmi and Gauri fields for Q2 2007 was13,498 boepd (comprising average oil and condensate production of 4,261 bopd andaverage gas production of 55 mmscfd). A drilling rig, the "Offshore Courageous" has been contracted from ScorpionOffshore for the further development of the field, with a planned offshore fourwell infill development drilling programme scheduled to commence in H2 2007. An upgrade to the oil handling facilities is underway and is scheduled forcompletion in late 2007/early 2008. The onshore CB-X tie in project was completed and delivered first gas in Q22007. CB-ONN-2001/1 (Cairn India 30%, ONGC Operator) A final commitment well on this block was drilled and abandoned in April 2007. CB-ONN-2002/1 (Cairn India 30%, ONGC Operator) Three wells are scheduled to be drilled on this block during H2 2007 or early2008. GS-OSN-2003/1 (Cairn India 49%, ONGC Operator) The Operator has acquired a 3D marine seismic programme of 510 km2 on thisblock. KRISHNA-GODAVARI (KG) BASIN - Eastern India RAVVA (Cairn India 22.5%, Operator) Average gross production from the Ravva field for Q2 2007 was 63,894 boepd(comprising average oil production of 51,577 bopd and average gas production of74 mmscfd). An extensive offshore infill development and exploration drilling programme onRavva commenced in October 2006 and is ongoing. To date, production hascommenced from three new infill wells and one successful appraisal well. Inaddition, two water injection wells have also been drilled and put into serviceto enhance the reservoir water-flood scheme. The Ravva field has been on plateaufor a number of years and the current drilling programme is aimed at continuingthe strong production performance at Ravva. The rig is currently operating on an exploration well, RX-8, on the MM301prospect. A further three work over wells are planned with the rig to enhanceproduction capacity. KG-DWN-98/2 (Cairn India 10%, ONGC Operator) The KT-1 Cretaceous exploration well spudded in June and drilling is ongoing. 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) This block was awarded in the NELPVI licensing round and covers an area of 9,400km2. A 2D seismic programme is being planned for early 2008. KK-DWN-2004/1 (Cairn India Limited 40%, ONGC Operator) This block was awarded in the NELPVI licensing round and covers an area of12,324km2. A 2D seismic programme is planned by the Operator in early 2008. NORTHERN INDIA - Ganga Basin GV-ONN-2002/1 (Cairn India 50%, Operator) An aeromagnetic survey was completed on this block in April 2007 and a 500kilometre 2D seismic acquisition programme is ongoing. GV-ONN-97/1 (Cairn India 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 *) Subject to receipt of the requisite approvals, a 2D seismic acquisitionprogramme is scheduled to commence in late 2007/early 2008. VN-ONN-2003/1 (Cairn India 49%, Operator*) Seismic reprocessing is underway and planning will commence later in 2007 for a2D seismic acquisition programme which is expected to commence 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 Q2 2007:- Ajay Gupta was appointed as Head - Commercial and New Business Development from1st June 2007. Ajay, aged 38, graduated from the Birla Institute of Technology and Science,Pilani with a Master of Science in Economics and Management Studies. Ajay hasfourteen years of experience in corporate finance, capital markets and mergersand acquisition. He began his career with JM Financial and InvestmentConsultancy Services Ltd in 1993 which went on to form a joint venture withMorgan Stanley in April 1999. In his most recent role with JM Morgan Stanley PvtLtd, he was Associate Director - Corporate Finance and Head of the Energy andUtilities Group in India. Mike Walsh was appointed as Chief Corporate Counsel from 1st June 2007. Mike aged 40, graduated from the University of Aberdeen in Scotland with anHonours Degree in Law and is qualified in both Scots and English law. He has 15years commercial experience and has focused exclusively on the oil industry forthe last eight years. He began his career with Ledingham Chalmers in Scotlandbefore moving to Azerbaijan in 1998 to manage their Baku office. He returned toScotland in 2003 and he joined Cairn India from McGrigors LLP, where he was apartner in their oil and gas department. YB Sinha (formerly Exploration Director of ONGC) has also joined Cairn India asCorporate Exploration Advisor. Rajasthan Community Overview The International Finance Corporation (IFC) has strengthened its ties with CairnIndia by reaching agreement for a joint funding mechanism to support thesocio-economic development initiatives in Block RJ-ON-90/1. The agreement wassigned by Rahul Dhir and the Executive Vice President and CEO of IFC, LarsThunell, in Washington in June. The Enterprise Centre for local and vocationalskill development will be housed in the Industrial Training Institute in Barmerfollowing the kind agreement of the Government of Rajasthan to provide thefacilities. Cairn India Limited Registered Office : 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai 400025 Corporate Office : 3rd & 4th Floors, Orchid Plaza, Sun City, Sector 54, Gurgaon 122 002 Unaudited Financial Results for the Quarter ended 30 June 2007 (All amounts are in thousands of Indian Rupees, unless otherwise stated) -------------------------------------------------------- --------------------- --------- --------- ---------------- S.No. Particulars Quarter ended Half year Accounting year ended ended 30 June 2007 30 June 2007 31 December 2006 (Unaudited) (Unaudited) (Audited) -------- --------------------- --------- --------- ---------------- 1 Income from Operations 3,610 8,587 - 2 Other Income 84,859 205,906 59,065 3 Total Income (1+2) 88,469 214,493 59,065 4 Total Expenditure - a) Staff cost 132,471 339,717 345,962 b) Others 29,704 33,720 3,630 Total 162,176 373,437 349,592 5 Exploration costs 1,979 1,979 6 Interest and Finance costs - 199 1,714 7 Depreciation - - - 8 Profit/(Loss) before taxation (3-4-5-6-7) (75,686) (161,123) (292,241) 9 Provision for taxation - - - 10 Net Profit/(Loss) after tax (7-8) (75,686) (161,123) (292,241) 11 Paid-up Equity Share Capital (Face value of Rs. 10 17,783,994 17,783,994 17,653,144 each) 12 Reserves excluding Revaluation Reserves - - 275,017,837 13 Profit/(Loss) per Share (par value Rs. 10 each) - Basic/diluted* (Rs.) (0.04) (0.09) (0.94) 14 Aggregate of 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 : 1 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 30 July 2007. The limited review, under clause 41 of the Listing Agreement, has been carried out by auditors of the Company. 2 The Company was incorporated on 21 August 2006 and hence the comparison with the corresponding quarter and half year of the previous year is not applicable. 3 The Company operates in only one segment i.e "Oil and Gas Operations". 4 During the quarter ended 30 June 2007, staff cost includes Rs.131,303 thousands, representing amortisation of employee compensation expenses pertaining to Employee Share Options. 5 The Finance Act, 2007 requires payment of Fringe Benefit Tax ("FBT") on Employee Share Options benefit provided to employees. FBT is payable on the date when 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 been exercised. 6 During the quarter ended 30 June 2007, the Company commenced surveys and other exploration activities in one of the Oil & Gas blocks awarded under NELP-VI. 7 The number of investors' complaints received and disposed of during the quarter ended 30 June 2007 were as follows- 1) Pending at the beginning of the quarter 413 2) Received during the period 2,733 3) Disposed of during the period 2,941 4) Pending at the end of the quarter 205 8 As on 30 June 2007, the Company and its subsidiaries together have utilised Rs. 65,933,560 thousands for the purposes listed in the Prospectus, as against the projected utilisation of Rs.88,248,900 thousands. The funds utilised till 30 June 2007 were as follows- Rupees in thousands a) Acquisition of shares of Cairn India Holdings Limited from Cairn UK 59,580,837 Holdings Limited b) Exploration and Development expenses 4,731,427 c) General corporate purposes 28,048 d) Issue expenses 1,593,248 Place : Edinburgh For and on behalf of the Board Date : 30 July 2007 Rahul Dhir Chief Executive Officer Cairn India Limited Consolidated Financial Results Registered Office : 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai 400025Corporate Office : 3rd & 4th Floors, Orchid Plaza, Sun City, Sector 54, Gurgaon 122 002 Unaudited Financial Results for the Quarter ended 30 June 2007(All amounts are in thousands of Indian Rupees, unless otherwise stated)------------------------------------------------ ------------------------- -------- -------- ----------Sr.No. Particulars Quarter ended Half year Accounting ended year ended 30 June 2007 30 June 2007 31 December 2006 (Unaudited) (Unaudited) (Audited) ------ ------------------------- --------- --------- --------- 1 Income from Operations 2,433,131 4,797,064 387,417 2 Other Income 351,262 712,850 62,215 3 Total Income (1+2) 2,784,393 5,509,914 449,632 4 Total Expenditure a)( Increase)/Decrease in stock-in-trade (156,587) (61,104) 28,898 b) Operating expenses 340,978 813,956 53,119 c) Staff cost 287,996 596,503 361,126 d) Other Administration costs 65,837 80,474 8,579 Total 538,224 1,429,829 451,722 5 Interest and Finance costs 7,722 9,233 2,746 6 Exploration costs 740,916 1,214,976 59,481 7 Depreciation, Depletion, Amortisation & 404,431 932,249 61,226 Site Restoration expenses 8 Profit/(Loss) before foreign exchange 1,093,100 1,923,627 (125,543) fluctuation and taxation (3-4-5-6-7) 9 Foreign exchange fluctuation 1,405,594 1,543,642 4,588 10 Profit/(Loss) before taxation (8-9) (312,494) 379,985 (130,131) 11 Provision for taxation a) Current Tax 128,260 219,170 11,777 b) Deferred Tax 264,899 481,348 43,861 c) Fringe benefit Tax 8,768 18,268 789 12 Net Profit/(Loss) after tax (10-11) (714,421) (338,801) (186,558) 13 Minority Interest - - 25,184 14 Net Profit/(Loss) after tax and Minority (714,421) (338,801) (211,742) Interest (12-13) 15 Paid-up Equity Share Capital 17,783,994 17,783,994 17,653,144 (Face value of Rs. 10 each) 16 Reserves excluding Revaluation Reserves 17 Profit/(Loss) per Share (par value Rs. 10 each) - Basic/diluted* (Rs.) (0.40) (0.19) (0.68) ------ ---------------------- --------- --------- --------- Not annualised Notes : 1. The above unaudited financial results were reviewed and recommended by the Audit Committeeand approved by the Board of Directors at their meeting held on 30 July 2007. 2. The Company was incorporated on 21 August 2006; the Company acquired majority ownership ofCairn India Holdings Ltd (including its subsidiaries) on 20 December 2006 and subsequentlyon 29 December 2006, acquired 100% ownership of Cairn India Holdings Ltd. The auditedconsolidated financial results for the year ended 31 December 2006, incorporate the resultsof Cairn India Holdings Ltd (including its subsidiaries) for the period from 20 December2006 to 31 December 2006. The comparison with the corresponding quarter and half year ofthe previous year is therefore not applicable. 3. The Company and its subsidiaries operate in only one segment i.e."Oil and Gas Operations". 4. During the quarter ended 30 June 2007, the strengthening of the Indian Rupee against USDollar has resulted in recognition of an accounting loss due to foreign exchangefluctuation of Rs. 1,405,594 thousands. This arises on account of the deposits held in USDollar by the foreign subsidiaries, which are intended to be used for capital imports. Inthis current phase of project implementation we would ordinarily hold US Dollars to matchour projected dollar outflows for capital expenditure. 5. Tax (including current tax and deferred tax) is calculated at entity level and not on aconsolidated basis; losses arising within one jurisdiction are not available for offsetagainst profits arising in another. In the period under review, the foreign currencyfluctuation loss arises on USD cash deposits held mainly by one entity and, for taxcomputation purposes, is not available for setoff against operating profits. 6. During the quarter ended 30 June 2007, the Company has charged off Rs.740,916 thousands onaccount of exploration costs written off as per the "Guidance Note on Accounting for Oiland Gas Producing Activities" issued by the Institute of Chartered Accountants of India,out of which Rs.636,423 thousands pertain to geological / geophysical studies, seismic andother surveys, and balance of Rs.104,493 thousands pertains to unsuccessful wells writtenoff. Place : Edinburgh For and on behalf of the board Date : 30 July 2007 Rahul Dhir Chief Executive Officer Enquiries to: Analysts/Investors Preeti Chheda, Investor Relations Manager +91 9910894352 Media David Nisbet, Director, Corporate Communications +91 99104 87715 About Cairn India Limited O "Cairn India" where referred to in the release means Cairn India Limitedand/or its subsidiaries, as appropriate. O "Cairn" where referred to in this release means Cairn Energy PLC and/orits subsidiaries (including Cairn India), as appropriate. O Cairn India is headquartered in Gurgaon on the outskirts of Delhi, withoperational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan. O On 9 January 2007, Cairn successfully concluded the flotation of itsIndian business with the commencement of trading of Cairn India Limited on theBombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLCcurrently holds a 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 gasEOR enhanced oil recoveryFDP field development planmmboe million barrels of oil equivalentmmscfd million standard cubic feet of gas per dayPSC production sharing contract The Fatehgarh is the name given to the primary reservoir rock of the 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 ExchangeRelated Shares:
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