Cairn Energy plc (CNE.L) reported Tuesday that its first-half loss before taxation from continuing operations was $57.0 million, narrower than last year’s loss of $234.7 million.
Advertisement
The group’s exploration and appraisal costs, meanwhile, are forecast at US$135mln of which US$55mln covers the now committed activity. Cairn is seeking restitution for losses resulting from the attachment of its shares in CIL and failure to treat Cairn and its investments fairly and equitably.
On the exploration front in Senegal, Cairn has drilled six wells in two years – two basin-opening discoveries and four successful appraisal wells. 2C goes to 473 million barrels with stock tank oil initially in place of 2.7 billion barrels, and with further upside of another 500 million bible in third phase of drilling.
Thomson highlighted that the exploration and appraisal focus on Senegal is being balanced by the ongoing development of oil fields in the UK North Sea.
The latest gross capital expenditure estimate is $300m, or more than 10% lower than the sanction estimate, the board confirmed.
Cairn said the Kraken project, which is operated by Enquest, is 10pc under budget after a drive to reduce costs, while Premier Oil’s Catcher project is 20pc below budget.
Further cost reductions have also been found on Catcher, with the latest gross capex estimate now 20% lower than at sanction.
Advertisement
The company, based in Edinburgh, also said drilling at its Senegal project is scheduled to re-commence shortly and the company continues to actively assess and pursue new ventures. The significant cash outflows in the period include total exploration costs of US$90m, of which Senegal exploration and appraisal costs were US$70m, and Kraken development costs of US$87m.
