Edinburgh-based oil explorer Cairn Energy has slashed its half year losses in the six months ending Jun 2016 to $38 million – compared to $230 million last year.
In the North Sea, its Kraken development remains on schedule with first oil anticipated in H1 2017. The latest gross cap-ex estimate is of less than $300m is more than 10% lower than sanction estimate.
The Catcher field (Cairn 20% WI) is targeting first oil H2 2017 with the FPSO hull now in Singapore. Further cost reductions mean that the latest gross cap-ex estimate now 20% lower than at sanction.
Meanwhile, the Skarfjell JV (where Cairn has a 20% working interest) is working towards concept selection for field development, with a final investment decision expected by the end of this year.
Cairn also reported a positive series of exploration wells and drilling in its Senegal operations which have substantially increased 2C oil resources to 473 million barrels, with associated 2C oil in place in excess of 2.7 billion barrels.
Simon Thomson, Chief Executive, Chief Executive, said: “Cairn’s exploration and appraisal focus in Senegal is balanced with development assets in the UK, with first oil targeted from both Kraken and Catcher during 2017 and in the meantime Cairn remains fully-funded in respect of all of its capital commitments.”