Cairn to begin sustained drilling campaign in UK, Norway
Source - SMW
Cairn, one of Europe's leading independent oil and gas exploration and development companies, said both the Kraken and Catcher developments in the UK North Sea delivered first oil production while In Senegal it completed a successful third phase of drilling.
'Over the last twelve months, Cairn has achieved several strategic milestones and is well positioned to deliver on its strategy in 2018,' said Simon Thomson, Chief Executive, Cairn Energy PLC. 'Cairn is funded in respect of all capital commitments with a strong balance sheet and growing production cash flows.'
The company said the Catcher and Kraken developments in the UK North Sea both achieved first oil in 2017 and are ramping up to plateau production, following which they are expected to deliver significant cash flows for reinvestment. Full-year production, net to Cairn, for 2018 is estimated to be 17,000 to 20,000 bopd with plateau production from Catcher and Kraken achieved by mid-year.
'Cairn offloaded its first Kraken cargo of ~386,000 barrels (net of the Flowstream 4.5% share) in Q4 2017 recording revenue of ~US$20m,' Cairn said in a statement.
The company said that in Senegal its SNE field appraisal and concept select definition are concluding, for the first phase of development of the extensive resource base, and aims to have a government- approved exploitation plan in place by the end of 2018 with a target of first oil in 2021-2023.
In Norway an extensive exploration drilling campaign is underway for 2018, 2019, with plans to drill up to ten wells, targeting more than 1.5 boe gross unrisked resources across a variety of play types in the UK and Norway, including the Barents Sea,' Cairn said in a statement. 'The Skarfjell (Cairn 20% WI) JV plan for development and operation (PDO) is anticipated in H1 2018, with first oil targeted in 2021 and expected plateau production of 50,000 bopd (~10,000 bopd net to Cairn).'
Cairn secured two new licences in the Mexico offshore bid round in the first half of 2017. 'The licences, one operated and one non-operated, are located in the highly prolific yet under-explored Sureste basin,' Cairn said in a statement. 'Cairn anticipates exploration drilling to commence in 2019 on both blocks.'
Cairn reported group net cash at 31 December 2017 was about US$56m, while capital expenditure for second half of 2017 was about US$205m.
At 8:35am: (LON:CNE) Cairn Energy PLC share price was +1.6p at 217.6p