Edinburgh-based oil explorer Cairn Energy reported a $62 million loss after tax over the first half of the year, a reduction in losses from the same time last year when it was hit hard by impairments booked in its Indian business.
The company reported a $219 million loss after tax in the year-earlier period.
Cairn’s Indian subsidiary remains under investigation by the Indian tax authorities, meaning the parent firm is unable to tap its $1.1 billion stake in the business.
Cairn said its group cash position of $1.1 billion was adequate to pay for its operations in the foreseeable future.
However, Cairn plans to drill seven exploration and appraisal wells in the coming 12 months, with around $300 million earmarked to be spent in the second half of this year and another $110 million for its 2015 drilling campaign.
And tree non operated exploration wells are planned in the UK and Norwegian North Sea and Barents Sea over the next twelve months:
- Aragon (UK Continental Shelf (UKCS), MPX (20%) operator during exploration phase) is currently operating (Cairn 32.5% WI)
- Ensis (Barents Sea, Statoil operator, Cairn 25% WI) is currently operating
- West of Kraken (UKCS, EnQuest operator, Cairn 25% WI) due to commence Q3/Q4 2014
Cairn’s entry into the Barents Sea aims will join an emerging oil-rush in the region and to expand in a country where Cairn already has a significant portfolio of assets and fiscal terms offer a significant rebate on all exploration expenditure.
Cairn also said it plans to seek to pre-qualify as an oil driller/ operator in Norway and to apply for additional acreage in the Barents Sea in the 23rd licence round.
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