CIL Q1 2008 Results
Cairn Energy PLC
29 April 2008
For Immediate Release
29 April 2008
Cairn Energy PLC
Cairn India Limited (Consolidated) First Quarter Results 2008
The attached release was issued today by Cairn India Limited ('Cairn India') to
the Bombay Stock Exchange and the National Stock Exchange of India.
In accordance with its Indian reporting obligations, Cairn India has today
issued its Q1 2008 financial results. This financial information is reported in
Indian rupees and is prepared under Indian GAAP.
Cairn Energy PLC has a 65% holding in Cairn India. Cairn Energy PLC released
group financial information to the UK market in its 2007 Preliminary results
announcement on 31 March 2008. These consolidated results were reported in US$
under IFRS and include the group's interest in Cairn India.
Key differences between the financials prepared under Indian GAAP to those under
IFRS are summarised in the table below:
IGAAP IFRS
Accounting
policy
Exploration Unsuccessful and other Unsuccessful costs are written
write off exploration costs (eg seismic) off; other exploration costs are
(income are expensed as incurred capitalised pending
statement) determination
Depletion & Based on working interest Based on entitlement interest
Decommissioning production and reserves production and reserves
Foreign Exchange gains and losses No exchange gains or losses
exchange recognised on translation of recognised on US$ transactions/
US$ transactions/balances into balances where US$ is also the
INR reporting currency functional currency
(income
statement
recognition)
Disclosure
Operator fees Included in income from Included within other operating
operations income
Interest income Included in other income Included in finance income
Group Production
The figures in the table below show group production for Q1 2008 (including 100%
of Cairn India's production).
Production (boepd) Ravva CB-OS/2 Sangu Total
Gross field 58,761 12,006 9,946 80,713
Working interest 13,221 4,802 3,730 21,753
Entitlement interest 6,900 4,595 2,982 14,477
The average realised price per boe for Q1 2008 is $61.85.
Group Net Cash
Group net cash at 31st March 2008 was approximately $698m (including 100% of
Cairn India's net cash balances; US$ 346m).
Group Accounting
Cairn Energy PLC's consolidated accounts include the results of its subsidiary
undertakings (including Cairn India) to the balance sheet date. The 35% interest
in Cairn India held by other shareholders is reflected as a minority interest
adjustment.
For Immediate Release 29 April 2008
Cairn India Limited (Consolidated) First Quarter Results 2008
The following commentary is provided in respect of the unaudited financial
results and operational achievements of Cairn India Limited and its subsidiary
companies (referred to as 'Cairn India') during the first quarter of 2008.
OPERATIONAL
O Rajasthan on track for first commercial production H2 2009
O Larsen and Toubro Limited (L&T) awarded contract for the Engineering
Procurement and Construction (EPC) services for the export crude oil
insulated pipeline and gas pipeline from Barmer, Rajasthan to Salaya,
Gujarat
O Bhagyam Field Development Plan (FDP) approved by Government of India -
resource potential to support plateau of 175,000 bopd from Mangala,
Bhagyam and Aishwariya (MBA) fields in Rajasthan
O Bids submitted for offshore acreage in Sri Lanka
O Exploration programme for 2008 underway -15 exploration/appraisal wells
planned plus 6 seismic surveys
CORPORATE
O Cairn India US$ 625 million private placement approved by shareholders at
Extraordinary General Meeting (EGM)
FINANCIAL
The gross production of the operating units was 70,766 barrels of oil equivalent
per day (boepd) in Q1 2008 (74,830 boepd in Q1 2007). The working interest
production was 18,023 boepd in Q1 2008 (19,811 boepd in Q1 2007) and was higher
in comparison to Q4 2007 (16,370 boepd).
'Cash flow from operations', worked out as profit after tax prior to non-cash
expenses (non-cash employee cost, depreciation, depletion, amortisation and
deferred tax) and exploration cost, was Rs. 2,514 million (US$ 63.1 million) for
Q1 2008 and for Q1 2007 was Rs 1,940 million (US$ 44.1 million)
Cash (net of borrowings) available as at 31 March 2008 was Rs. 13,767 million
(US$ 346 million)
The consolidated revenue of Cairn India Limited and its subsidiaries for Q1 2008
is Rs. 3,158 million (US$ 79.3 million) and for Q1 2008 was Rs. 2,364 million
(US$ 53.8 million)
The average oil price realisation in Q1 2008 was US$ 100.01 /bbl and for Q1 2007
was US $ 61.04 /bbl. The gas price realisation in Q1 2008 was US$ 4.08/mscf and
for Q1 2007 was 4.07/mscf).
Average price realisation per boe was US$ 73.32 in Q1 2008 and for Q1 2007 was
US$ 42.25
The consolidated Profit before tax for Q1 2008 was Rs. 1,824 million (US$ 45.8
million) and for Q1 2007 was Rs. 692 million (US$ 15.7 million)
The consolidated Profit after providing for tax (including deferred tax and FBT)
for Q1 2008 was Rs. 1,164 million (US$ 29.2 million) and for Q1 2007 was Rs. 376
million (US$ 8.5 million)
The Company has decided to retrospectively to account for stock options using
the Intrinsic Value Method as against the Fair Value Method (Black Scholes)
followed to the financial year ended 31December 2007. Accordingly, the excess
stock options provision has been reversed upto 31 December 2007 resulting in an
exceptional gain of Rs. 156 million (US$ 3.9 million). Further the provision for
the current quarter is lower by Rs. 68 million (US$ 1.7 million) due to this
change.
Deferred tax provision of Rs 554 million (US$ 13.9 million), arising mainly on
account of certain exploration and development expenses which is 100% allowable
for tax purposes in the year in which it is incurred, but depleted / depreciated
in the books of accounts from the year of production.
Tax (including current tax and deferred tax) is calculated at entity level and
not on a consolidated basis; losses arising within one jurisdiction are not
available for offset against profits arising in another.
Amounts shown in US$ are converted based on an average exchange rate for the Q1
2008 of 39.815 and a closing exchange rate as on 31st Mar 2008 of 39.815
(average rate of Q1 2007 was 43.967)
Rahul Dhir, Chief Executive Officer said:
'We are delighted that the FDP for Bhagyam, the second biggest field in
Rajasthan, has now been approved. Oil field development work in Rajasthan is
well underway. The major contractors for the integrated upstream and midstream
development are in place and on course to deliver first oil from Mangala in the
second half of 2009.'
OPERATIONAL REVIEW
Gross operated production in India for the first quarter of 2008 was 70,766
boepd
(18,023 working interest boepd).
RAJASTHAN BASIN - North West India
Block RJ-ON-90/1
Development - Upstream (Cairn India 70% (Operator); ONGC 30%)
The FDP for Bhagyam, the second largest field in the block, has been approved by
the GoI on the basis of a currently planned plateau production rate of 40,000
bopd. The Bhagyam and Shakti fields are contained within a second Development
Area of 430 km2.
Oil field development work at the Cairn India's world class discovery in
Rajasthan is in full flow. The integrated upstream and midstream development is
on course to produce first oil from Mangala in the second half of 2009.
All major civil and construction contracts have been awarded, long lead time
items have been procured and work on both the upstream and midstream (pipeline)
are well underway. Larsen and Toubro Limited (L&T) has been awarded the second
major contract by Cairn India for the Engineering Procurement and Construction
(EPC) services for the export crude oil insulated pipeline and gas pipeline from
Barmer, Rajasthan to Salaya, Gujarat.
Rajasthan is a major resource base and Cairn India and its Joint Venture (JV)
partner are focused on realising the full potential through conventional and
enhanced oil recovery techniques. Subject to regulatory approval, the latest
Field Development Plans for the three main fields assume a sustainable peak
plateau production of 175,000 bopd: Mangala 125,000 bopd, Bhagyam 40,000 bopd
and Aishwariya 10,000 bopd.
Interpretation of data from a 120 km2 high definition 3D seismic survey over
Mangala is underway. This data will be used for more detailed reservoir
characterisation for development drilling and for the application of future time
lapse monitoring techniques.
Development - Midstream (Cairn India 70% (Operator); ONGC 30%)
The Government of India (GoI) has agreed to grant Rights of Use (RoU) for the
pipeline in order to meet the planned schedule. The front end engineering and
design (FEED) and the procurement process for most of the long lead items have
already been completed.
The EPC for the pipeline has been issued. The land development contract for the
Viramgam Terminal has been awarded and site preparation work commenced at the
Viramgam Terminal site in mid February 2008.
The notification for a 212 kilometre stretch of the pipeline in Gujarat has
already been published by the GoI and the RoU now rests with the JV partners.
The remaining notifications for 154 kilometres in Rajasthan and a further 224
kilometres in Gujarat will be submitted to the GoI in due course. The available
RoU will allow us to commence pipe line construction as per the schedule,
starting in Gujarat in H2 2008.
The proposed routing of the pipeline will allow access to an extensive existing
pipeline infrastructure and refinery network, with a final coastal delivery
point that also affords access to the majority of India's refining capacity.
Discussions are ongoing with the GoI regarding the potential inclusion of the
Pipe line project infrastructure within the FDP for cost recovery purposes.
Enhanced Oil Recovery
The second phase of laboratory work for the Mangala field has commenced which is
designed to confirm and refine chemical selection for the pilot project Cairn is
currently studying the staged and early application of aqueous-based chemical
flooding EOR techniques for the MBA fields. Early application of EOR in these
fields would be designed to extend their crude oil production plateau periods,
reduce water production, mitigate future decline rates and potentially
accelerate crude oil production. A pilot for polymer and ASP flooding for the
Mangala field has been prepared and approvals will be sought in 2008 from the JV
partner and the GoI to commence the pilot once production has started from the
field in 2009.
Northern Appraisal Area (Cairn India 100%)
A Declaration of Commerciality (DoC) for the three discoveries made in this area
(Kameshwari West 2, 3 and 6) has been approved by the JV partners, along with a
proposed new Development Area of 1,178 km2. The DoC is now awaiting approval
from the GoI.
Exploration Overview Rajasthan and other assets
The 2008 exploration programme includes the drilling of 15 wells, seven of which
will be operated by Cairn India and the acquisition of three onshore 2D seismic
surveys a 200 km2 onshore 3D survey and two offshore 2D surveys comprising 6,150
km, all but one of which will be operated by Cairn India. The 2008 seismic
acquisition will position Cairn India for an extensive drilling programme in
2009.
Five wells are expected to be drilled in RJ-ON-90/1 from the third quarter of
2008, including appraisal of the 2003 Kameshwari Discovery and drilling of
under-explored plays within the basin. An important well in GV-ONN-2002/1, in
the state of Bihar, will test the potential of this part of the frontier Ganga
Basin.
Cairn India continues to invest a substantial amount of effort into exploration
new ventures. Two bid applications for blocks in the Sri Lanka bid round have
been submitted. The company is also actively evaluating the blocks available in
India as part of the NELP VII Round, which is now expected to close in May 2008.
Cambay Basin - Western India
Block CB/OS-2: (Cairn India 40% (Operator))
In the CB/OS-2 block the Lakshmi, Gauri and CB-X fields are primarily gas
producing, with some oil production. The average gross production for Q1 2008
was 12,006 boepd
(comprising average gas production of 36mmscfd and average oil/condensate
production of 6,042 bopd). CB/OS-2 oil production reached a daily record of more
than 10,000 bopd gross in February 2008.
In September 2007 a drilling campaign began in CB/OS-2 with four wells
successfully drilled and completed as part of the further development of the
Lakshmi and Gauri fields. By February 2008 all of these wells have been placed
on production. Three well workovers aimed at restoring production in wells with
mechanical problems or allowing access to other hydrocarbon pools were also
successfully completed.
A field development plan for the Ambe field has been submitted to the GoI.
CB-ONN-2002/1 (Cairn India 30% (ONGC Operator))
A three well drilling programme is expected to commence in 2008.
Krishna-Godavari Basin - Eastern India
Ravva (Cairn India 22.5% (Operator))
Average gross production from the Ravva field for Q1 2008 was 58,761 boepd
(comprising average oil production of 46,561 bopd and average gas production of
73 mmscfd). Ravva has reached the significant milestone of producing 200 million
barrels of oil from the field.
An infill drilling campaign commenced in the field in October 2006 and concluded
in the first quarter of 2008, and was aimed at extending the plateau and adding
reserves. The recent infill campaign, in which four new producers and three new
injectors have been drilled, has been successful in meeting the desired
objectives.
Production has now commenced from the four new infill wells. In addition, one
water injection well has been put into service to enhance the reservoir
water-flood scheme, while two others are planned to start injection in Q2 2009.
Two well workovers were also completed.
KG-ONN-2003/1 (Cairn India 49% (Operator - exploration phase))
The acquisition of a 500 km 2D seismic programme commenced in January 2008 to be
followed by the acquisition of a 200km2 3D programme. Planning has commenced in
support of drilling between three and five exploration wells from the beginning
of 2009.
KG-DWN-98/2 (Cairn India 10% (ONGC Operator))
The Joint Venture has approved a three well appraisal programme for 2008,
together with additional 3D seismic acquisition. Approval of an appraisal period
up to July 2010 under the PSC for appraisal of the discoveries made in the block
to date has been given by the GoI.
PR-OSN-2004/1 (Cairn India 35%, (Operator))
The acquisition of an offshore 3,100 km 2D seismic programme will be completed
shortly. An 800 km2 3D programme on the block is planned early in 2009.
Ganga Basin- Northern India
GV-ONN-2002/1 (Cairn India 50% (Operator) Capricorn 50%)
An exploration well will be drilled in 2009 .Site construction is expected to be
completed early in Q3 2009.
GV-ONN-97/1 (Cairn India 15% Capricorn 15% (ONGC, Operator))
Final logging is underway of the Banda-1 well, which was spudded at the end of
2007. The well is currently operating.
GV-ONN-2003/1 (Cairn India 49% (Operator - exploration phase) Capricorn 25%)
The acquisition of a 550 km 2D seismic programme is expected to commence in
2008.
Rest of India
VN-ONN-2003/1 (Cairn India 49% (Operator - exploration phase))
The acquisition of a 500 km 2D seismic programme is expected to commence in H2
2008.
KK-DWN-2004/1 (Cairn India 40% (ONGC, Operator))
A 3,500 km 2D seismic programme is expected to be acquired in 2008.
CORPORATE
At the EGM of the Company held on 16 April 2008, the shareholders of the Company
approved the Preferential Issue of 11, 30, 00,000 (Eleven Crores and Thirty
Lakh- US$ 625 million) equity shares of the Company of face value of Rs. 10/-
each at a premium of Rs. 214.30 per equity share aggregating to Rs. 2,534.59
Crores to Petronas International Corporation Limited and Orient Global Tamarind
Fund Pte Limited.
------------------------------------------------
Cairn India Limited
Consolidated Financial Results
Registered Office : 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai 400025
Corporate Office : 3rd & 4th Floors, Vipul Plaza, Sun City, Sector 54, Gurgaon 122 002
Unaudited Financial Results for the quarter ended 31 March 2008
(All amounts are in thousands of Indian Rupees, unless otherwise stated)
------------------------------------------------
Sr.No. Particulars 3 months ended 3 months ended
Year ended
31 March 2008 31 March 2007
(Unaudited) (Unaudited)
31 December
2007 (Audited)
------ -------------------- -------- --------
--------------
1 Income from Operations 3,158,375 2,363,933
10,122,627
2 Other Income 217,595 361,588
1,324,089
3 Total Income (1+2) 3,375,970 2,725,521
11,446,716
4 Total Expenditure
a) (Increase)/Decrease in stock-in-trade (32,717) 95,483
(111,714)
b) Operating expenses 466,327 472,978
1,945,812
c) Employees cost 252,153 308,507
1,257,398
d) Depreciation, Depletion, Amortisation & Site Restoration expenses 632,414 527,818
2,077,056
e) Other expenditure - Administration cost 192,663 14,647
359,595
f) Exploration cost 174,915 474,060
2,512,282
g) Foreign exchange fluctuation 18,913 138,038
2,120,011
h) Total 1,704,668 2,031,531
10,160,440
5 Interest and Finance cost 3,291 1,511
27,049
6 Exceptional items (155,723) -
-
7 Profit /(Loss) from ordinary activities before tax (3) - (4+5+6) 1,823,734 692,479
1,259,227
8 Provision for taxation
a) Current Tax 96,444 90,910
387,756
b) Deferred Tax 554,070 216,449
764,194
c) Fringe benefit Tax 8,905 9,500
352,719
9 Net Profit/(Loss) from ordinary activities after tax (7-8) 1,164,315 375,620
(245,442)
10 Extraordinary Items (net of tax) - -
-
11 Net Profit/(Loss) for the period (9-10) 1,164,315 375,620
(245,442)
12 Minority Interest - -
-
13 Net Profit/(Loss) for the period after Minority Interest (11-12) 1,164,315 375,620
(245,442)
14 Paid-up Equity Share Capital (Face value of Rs. 10 each) 17,791,917 17,783,994
17,783,994
------ -------------------- -------- --------
--------------
15 Reserves excluding Revaluation Reserves
276,084,115
16 Earning/(Loss) per Share (par value Rs. 10 each)* - in rupees
(a) Basic earnings/(loss) per share 0.65 0.21
(0.14)
(b) Diluted earnings/(loss) per share 0.65 0.20
(0.14)
17 Public Shareholding
- Number of shares 552,347,869 551,555,629
551,555,629
- Percentage of shareholding 31.04% 31.01%
31.01%
------ -------------------- --------- ---------
--------------
*not annualised
Notes :
1. The above unaudited financial results of the current quarter have been reviewed and recommended by the Audit
Committee and
approved by the Board of Directors at their meeting held on 29th April 2008. The limited review of the consolidated
financial results
for the quarter ended 31st March 2008 was conducted by the auditors of the Company. However, the results for the
quarter ended 31st
March 2007 were not reviewed by the auditors.
2. The Company and its subsidiaries operate in only one segment i.e. 'Oil and Gas Operations'
3. During the current quarter, the Company has written off Rs.174,915 thousands on account of exploration costs
as per the
'Guidance Note on Accounting for Oil and Gas Producing Activities' issued by the Institute of Chartered Accountants of
India,
pertaining to unsuccessful wells, geological/ geophysical studies, seismic and other surveys.
4. Foreign exchange fluctuation charge of Rs. 18,913 thousands includes the cost arising on the USD/INR options
settled or
marked-to-market as at 31st March 2008, taken for hedging foreign currency risks of the group and the net gain arising
on settlement
and translation of foreign currency monetary items at the rate prevailing at the end of the reporting date.
5. The Company has decided to retrospectively account for stock option using the Intrinsic Value Method as
against the Fair
Value Method (Black Scholes) followed till the financial year ended 31st December 2007. Accordingly, the excess stock
option provision
upto 31st December 2007 has been reversed, resulting in exceptional gain of Rs.155,723 thousands. Further the provision
for the
current quarter (included in employee cost) is lower by Rs. 68,221 thousands due to this change.
6. The Company and its subsidiaries ('Group') allocate and recover certain costs, viz, employee cost,
depreciation,
administration cost and finance cost from joint ventures operated by the Group and amounts shown above against these
costs represent
the net cost (Group's share) after allocation and recovery. Accordingly, Rs. 1,166,007 thousands, Rs. 1,197,569
thousands and Rs.
4,553,805 thousands have been allocated and adjusted against these costs on a proportionate basis during the quarter
ended 31st March
2008, quarter ended 31st March 2007 and the year ended 31st December 2007, respectively.
7. The current tax and deferred tax provisions have been computed on the basis of standalone financials of those
foreign
subsidiaries, which have operations in India i.e. not based on consolidated financials of Cairn India Limited and all
its
subsidiaries.
8. Previous quarter / year figures have been regrouped /rearranged wherever necessary to confirm to the current
quarter's
presentation.
For and on
behalf of the
Board
Place : New Delhi
Rahul Dhir
Date : 29th April 2008
Managing
Director and
Chief Executive
Officer
-----------------------------------------------
Cairn India Limited
Registered Office : 101, West View, Veer Savarkar
Marg,Prabhadevi, Mumbai 400025
Corporate Office : 3rd & 4th Floors, Vipul Plaza, Sun
City ,Sector 54, Gurgaon 122 002
-----------------------------------------------
Unaudited Financial Results for the
quarter ended 31 March 2008
(All amounts are in thousands of Indian Rupees,
unless otherwise stated)
-----------------------------------------------
Sr.No. Particulars 3 months ended 31 March 2008 (Unaudited)
3 months ended 31 March 2007 (Unaudited) Previous accounting year ended 31 December 2007 (Audited)
------ ------------------- --------
-------- --------------
1 Income from Operations 8,927
4,977 12,708
2 Other Income 61,963
121,047 326,915
3 Total Income (1+2) 70,890
126,024 339,623
4 Total Expenditure
a) Increase/Decrease in stock-in-trade -
- -
b) Operating expenses 36,125
- -
c) Employees cost 147,208
207,246 623,374
d) Depreciation, Depletion, Amortisation & Site Restoration expenses -
- -
e) Other expenditure - Administration cost 55,529
4,015 174,838
f) Exploration cost 74,495
- 8,879
g) Foreign exchange fluctuation 28
- -
h) Total 313,385
211,261 807,091
5 Interest and Finance cost 10
199 209
6 Exceptional items (155,723)
- -
7 Profit /(Loss) from ordinary activities before tax (3) - (4+5+6) (86,782)
(85,436) (467,677)
8 Provision for taxation
a) Current Tax -
- -
b) Deferred Tax -
- -
c) Fringe benefit Tax 590
- 320,489
9 Net Profit/(Loss) from ordinary activities after tax (7-8) (87,372)
(85,436) (788,166)
10 Extraordinary Items (net of tax) -
- -
11 Net Profit/(Loss) for the period (9-10) (87,372)
(85,436) (788,166)
12 Paid-up Equity Share Capital (Face value of Rs.10 each) 17,791,917
17,783,994 17,783,994
13 Reserves excluding Revaluation Reserves
276,084,115
14 Earning/(Loss) per Share (par value Rs. 10 each)* - in rupees
(a) Basic earnings/(loss) per share (0.05)
(0.05) (0.44)
(b) Diluted earnings/(loss) per share (0.05)
(0.05) (0.44)
15 Public Shareholding
------ ------------------- --------
-------- --------------
- Number of shares 552,347,869
551,555,629 551,555,629
- Percentage of shareholding 31.04%
31.01% 31.01%
------ ------------------- ---------
--------- --------------
*not annualised
Notes :
1. The above unaudited financial results of the current quarter have been reviewed and recommended by the Audit
Committee and approved by the Board of Directors at their meeting held on 29th April 2008. The
limited review was carried out by the auditors of the Company under the provisions of clause 41 of the Listing
Agreement.
2. The Company operates in only one segment i.e. 'Oil and Gas Operations'
3. The stock options outstanding as on 31st March 2008 were 6,714,233 options under Cairn India Senior Management
Plan 2006 ('CISMP'), 4,755,244 options under Cairn India Performance Option Plan 2006 ('CIPOP')
and 8,545,710 options under Cairn India Employees Stock Option Plan 2006 ('CIESOP'). 792,240 share options were
exercised under CISMP scheme and no new options were issued and cancelled by the Company during the
quarter Q1 2008. Employees cost for the quarter includes Rs.125,302 thousands representing amortisation of employee
compensation expenses pertaining to these stock option schemes.
4. During the current quarter, the Company has written off Rs.74,495 thousands on account of exploration costs as
per the 'Guidance Note on Accounting for Oil and Gas Producing Activities' issued by the
Institute of Chartered Accountants of India, pertaining to geological/ geophysical studies, seismic and other surveys.
5. The Company has decided to retrospectively account for stock option using the Intrinsic Value Method as
against the Fair Value Method (Black Scholes) followed till the financial year ended 31st December 2007.
Accordingly, the excess stock option provision has been reversed upto 31st December 2007, resulting in exceptional gain
of Rs.155,723 thousands. Further the provision for the current quarter (included in employee
cost) is lower by Rs. 68,221 thousands due to this change.
6. During the current quarter, the Company acquired interests in the following oil and gas blocks from its
subsidiary companies by way of assignment of interest.
(a) 30% interest in block CB-ONN-2002/1 from Cairn Energy Gujarat Block 1 Limited (b) 30% interest in block
RJ-ONN-2003/1 from Cairn Exploration (No. 2) Limited
(c) 25% interest in block KG-ONN-2003/1 from Cairn Exploration (No. 4) Limited
(d) 25% interest in block VN-ONN-2003/1 from Cairn Exploration (No. 6) Limited
(e) 49% interest in block GS-OSN-2003/1 from Cairn Exploration (No. 7) Limited
7. The number of investors' complaints received and disposed of during the quarter ended 31st March 2008 were as
follows-
a) Pending at the beginning of the quarter
23
b) Received during the period
57
c) Disposed of during the period
62
d) Pending at the end of the quarter
18
8. As on 31 March 2008, the Company and its subsidiaries together have utilised Rs. 75,405,585 thousands for the
purposes listed in the Prospectus, as against the projected utilisation of Rs.88,248,900
thousands. The funds utilised till 31st March 2008 were as follows-
Rupees in thousands
a) Acquisition of shares of Cairn India Holdings Limited from Cairn UK Holdings Limited
59,580,837
b) Exploration and Development expenses
14,006,899
c) General corporate purposes
218,230
d) Issue expenses
1,599,619
9. Previous quarter / year figures have been regrouped /rearranged wherever necessary to confirm to the current
quarter's presentation.
For and on
behalf of the
Board
Place : New Delhi
Rahul Dhir
Date : 29th April 2008
Managing
Director and
Chief Executive
Officer
Enquiries to:
Analysts/Investors
Anurag Mantri, Investor Relations Manager +919810301321
Media
David Nisbet, Director, Corporate Communications +91 99104 87715
About Cairn India Limited
O 'Cairn India' where referred to in the release means Cairn India Limited
and/or its subsidiaries, as appropriate.
O 'Cairn' where referred to in this release means Cairn Energy PLC and/or
its subsidiaries (including Cairn India), as appropriate.
O Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with
operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
O On 9 January 2007, Cairn successfully concluded the flotation of its
Indian business with the commencement of trading of Cairn India Limited on the
Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLC
currently holds a 65% shareholding in Cairn India Limited.
O Cairn India is currently focused on exploration and production in India
where it has a working interest in 14 blocks, two of which are producing
hydrocarbons. The company holds material exploration and production positions
in west India and east India along with new exploration rights elsewhere in
India.
O This focus on India 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. More than 20
discoveries have been made in Rajasthan block RJ-ON-90/1.
O In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production
Sharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858
km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is shared
between Cairn India and ONGC, with Cairn India holding 70% and ONGC having
exercised their back in right for 30%. A further Development Area (430 km2),
including the Bhagyam and Shakti fields, is also shared between Cairn India and
ONGC in the same proportion.
O The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and
ONGC.
O India currently imports approximately 2,000,000 barrels of oil per day
(bopd). It produces approximately 700,000 bopd itself of which approximately
50,000 bopd comes from the Cairn India operated Ravva field on the east coast of
India
O For further information on Cairn India Limited see www.cairnindia.com
Glossary
Technical
2P proven plus probable
3P proven plus probable and possible
2D/3D two dimensional/three dimensional
boe barrel(s) of oil equivalent
boepd barrels of oil equivalent per day
bopd barrels of oil per day
bscf billion standard cubic feet of gas
EOR enhanced oil recovery
FDP field development plan
mmboe million barrels of oil equivalent
mmscfd million standard cubic feet of gas per day
PSC production sharing contract
The Fatehgarh is the name given to the primary reservoir rock of the Northern Rajasthan fields of Mangala, Aishwariya
and Bhagyam.
The Barmer Hill is a lower permeability reservoir which overlies the Fatehgarh.
The Dharvi Dungar forms the secondary reservoirs in the Guda field and is the reservoir rock encountered in the recent
Kameshwari West discoveries.
The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbli is the primary reservoir for the
Raageshwari field.
These materials contain forward-looking statements regarding Cairn India, our
corporate plans, future financial condition, future results of operations,
future business plans and strategies. All such forward-looking statements are
based on our management's assumptions and beliefs in the light of information
available to them at this time. These forward-looking statements are, by their
nature, subject to significant risks and uncertainties and actual results,
performance and achievements may be materially different from those expressed in
such statements. Factors that may cause actual results, performance or
achievements to differ from expectations include, but are not limited to,
regulatory changes, future levels of industry product supply, demand and
pricing, weather and weather related impacts, wars and acts of terrorism,
development and use of technology, acts of competitors and other changes to
business conditions. Cairn India undertakes no obligation to revise any such
forward-looking statements to reflect any changes in Cairn India's expectations
with regard thereto or any change in circumstances or events after the date
hereof. Unless otherwise stated the reserves and resource numbers within this
presentation represent the views of Cairn India and do not represent the views
of any other party, including the Government of India, the Directorate General
of Hydrocarbons or any of Cairn India's joint venture partners.
This information is provided by RNS
The company news service from the London Stock Exchange
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