Completion of Acquisition

RNS Number : 9160C

Cairn Energy PLC

09 May 2012

 



EMBARGOED FOR RELEASE AT 0700

                                                                                                                                        9 May 2012

CAIRN ENERGY PLC

("Cairn" or the "Company")

Completion of acquisition of Agora Oil & Gas AS

Cairn is pleased to announce that, further to the announcement made on 3 April 2012, it has received all required approvals and today completed the acquisition of Agora Oil & Gas AS ("Agora"). Agora is now part of the Cairn group of companies.

Agora is a Norwegian company with non-operated exploration, appraisal and development assets in the UK and Norwegian North Sea.  Agora's portfolio is made up of interests in 11 licenses in the North Sea basin, with an active drilling programme in 2012. 

The total consideration is approximately US$453 million, satisfied through a combination of approximately 43.3% / US$196m cash and 56.7% / 47,662,603 Cairn shares (which are expected to be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's main market at 8am today).  Following the issue of these shares, the total issued share capital of Cairn will be 602,375,300 shares.

Simon Thomson, Chief Executive of Cairn Energy PLC said:

"The value of the acquisition of Agora has already been demonstrated with the significant light oil Skarfjell discovery in the Norwegian North Sea. 

This is an important initial transaction for Cairn, demonstrating our intention to build a balanced portfolio. 

The Agora team's experience and proven track record in identifying opportunities in a relatively mature basin, has the potential to add significant value for Cairn."

Enquiries:

Analysts/Investors Simon Thomson, Chief Executive Jann Brown, Managing Director & CFO Mike Watts, Deputy Chief Executive David Nisbet, Corporate Affairs	Tel: [phone]
Media Patrick Handley, David Litterick Brunswick Group LLP	Tel: [phone]

NOTES TO EDITORS

Agora Oil & Gas

Ø Agora is now 100% owned by Cairn

Ø Formed in October 2009 by the former management team of Revus Energy ASA and based in Stavanger, Norway.  Agora has focused on creating exploration and appraisal value in mature parts of the North Sea in areas of low-moderate geological and operational risk.

Ø Agora Gross Assets were NOK 717,941,000 which at 31 December equated to $120,101,208.  The Group had no profits for the year.  Loss for the year was NOK 50,347,000 or $8,978,700.

Ø Agora's Board of Directors is led by Chairman Andrew Armour and Chief Executive Svein Ilebekk.  The senior management team includes Tim Sullivan (Deputy CEO and UK Manager), Chris Elliott (Exploration Manager), Erik Samuelsen (Commercial Manager), Ingrid Landråk (Chief Financial Officer) and Callum Smyth (HSE & Operational Manager). 

Ø Agora has 15 employees who are based in Stavanger and the UK.

Cairn Energy PLC

Ø Cairn Energy PLC ("Cairn") is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange.

Ø "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries as appropriate.

Ø Cairn currently holds approximately 22% of the issued share capital of Cairn India Limited (CIL).  Production from CIL's Rajasthan operations is 175,000 bopd.

Ø Cairn Energy PLC (including Capricorn) is run from Edinburgh with operational offices in Kathmandu, Nuuk, Madrid and Stavanger.

Cairn in Greenland

Ø Cairn through its subsidiary, Capricorn, operates 11 blocks offshore Greenland.

Ø Cairn carried out extensive Environmental and Social Impact Assessments to identify how potential environmental and social impacts of its drilling programme can be avoided or mitigated.

Ø A total of 14 exploration wells have been drilled offshore Greenland to date, five of which were drilled in the 1970s, one in 2000, three in 2010 by Cairn Energy and five by Cairn Energy in 2011.

For further information on Cairn please see: www.cairnenergy.com 

 

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