RNS Number : 1890K
Cairn Energy PLC
12 July 2011
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
FOR IMMEDIATE RELEASE 12th July 2011
CAIRN ENERGY PLC ("Cairn")
Completion of the sale of a 10 per cent shareholding in
Cairn India Limited ("Cairn India") to Vedanta Resources plc ("Vedanta")
Cairn announces that it has yesterday completed the sale of 191,920,207 Cairn India shares to Vedanta, representing 10 per cent of the fully diluted share capital in Cairn India, for net proceeds of approximately $1,362 million in cash. The sale and purchase of a further 30 per cent of the fully diluted share capital of Cairn India remains subject to the necessary consents and approvals from the Government of India.
Following yesterday's sale, Cairn remains the majority shareholder of Cairn India with a 52.2 per cent shareholding. The Vedanta group now holds an aggregate 28.5 per cent stake in Cairn India.
Cairn Energy PLC
Simon Thomson, Chief Executive
Jann Brown, Managing Director and Chief Financial Officer
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Brunswick Group LLP
Tel: 0207 404 5959
NOTES TO EDITORS:
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 Following the IPO of Cairn India in January 2007, there are two separate arms to the Cairn business:
§ Cairn India limited ("Cairn India") which is headquartered in Gurgaon on the outskirts of Delhiis listed on the Bombay Stock Exchange and the National Stock Exchange of India. It has interests in a total of 11 acreage blocks in India and Sri Lanka. Cairn currently retains a 52.2% interest in Cairn India (on an un-diluted basis). Following completion of this 10% stake and the subsequent 30% stake in Cairn India, Cairn will hold a 21.9% interest in Cairn India (on an undiluted basis).
§ Capricorn Oil Limited ("Capricorn"), a 100% subsidiary of Cairn, is focused on exploration. Capricorn has assets in Nepal, Greenland, Albania and Spain.
Ø Under the sale agreement, Cairn gave certain non-compete undertakings, covering the territories of India, Sri Lanka, Pakistan and Bhutan in consideration for a non-compete fee payable on completion of the Transaction. Cairn and Vedanta have now agreed to remove the non-compete arrangements and the non-compete fee from the sale agreement.
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 previously focused its activities on the geographic region of South Asia, resulting 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.
Ø Cairn has commenced drilling operations on two wells offshore West Greenland.
§ The AT-7 well in the Atammik Block, approximately 160 kilometres offshore Nuuk, west Greenland and the LF-7 well in the Lady Franklin Block approximately 300 kilometres offshore Nuuk have both started operating.
§ The Leiv Eiriksson, a fifth generation semi submersible and the Ocean Rig Corcovado, a sixth generation drillship, are to carry out the drilling programme offshore Greenland this summer.
§ The AT-7 prospect in the Atammik Block and LF-7 prospect in the Lady Franklin Block are in water depths of 905 and 989 metres respectively.
For further information on Cairn please go to: www.cairnenergy.com
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