Resolution relating to proposed Share Award

RNS Number : 0286W

Cairn Energy PLC

24 January 2012

 



FOR IMMEDIATE RELEASE                                                                                            24 January 2012

CAIRN ENERGY PLC ("Cairn")

Decision to withdraw resolution relating to proposed Share Award in favour of

Sir Bill Gammell at General Meeting

Cairn announces that, following publication of the Company's circular to shareholders on 10 January 2012, it has noted the comments received from several institutional shareholders and their representative bodies in connection with the proposed Share Award in favour of Sir Bill Gammell.

In the light of those comments and as recommended by the Remuneration Committee of the Company, the Board has determined that it will withdraw resolution 2, which proposed approval of the Share Award, from consideration at the General Meeting to be held on 30 January 2012 and consult further with Shareholders on the matter.

Enquiries to:

Cairn Energy PLC                                                                    Tel: [phone]

Simon Thomson, Chief Executive

Jann Brown, Managing Director and CFO

David Nisbet, Corporate Affairs

Brunswick Group LLP

Patrick Handley                                                                         Tel: [phone]

David Litterick

NOTES TO EDITORS

All references to the share capital of Cairn India in this announcement are calculated on a fully diluted basis.

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. Following the IPO of Cairn India in January 2007, there are two separate arms to the business:

o  Cairn India limited ("Cairn India") is listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 11 acreage blocks in India and Sri Lanka. Cairn currently retains approximately 22% interest in Cairn India (on an un-diluted basis).

o  Capricorn Oil Limited ("Capricorn"), a 100% subsidiary of Cairn, is focused on exploration. Capricorn has assets in Nepal, Greenland, Albania and Spain.

Ø "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India and Capricorn), as appropriate.

Ø "Cairn India" where referred to in the release means Cairn India Limited and/or its subsidiaries, as appropriate.

Ø Cairn has focused its activities on the geographic region of South Asia, which has already resulted in a significant number of oil and gas discoveries.  In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn has now made more than 20 discoveries in Rajasthan block RJ-ON-90/1. Production from Rajasthan started in August 2009 and is expected to reach the approved plateau of 175,000 bopd.

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

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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