Cairn North Sea update

Cairn is pleased to announce the completion of the farm out agreement to Dyas UK Limited for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea for a carry of Cairn’s exploration and development costs up to a cap of US$182 million effective 1 January 2014. The Catcher development is on track for first oil from 2017.

As a result of the transaction, Cairn has reduced its forward capital expenditure to the end of 2017 by ~US$380 million. Cairn retains a 20% working interest in the Catcher licence.

Cairn, through its wholly owned subsidiary Capricorn Norge AS, has also been awarded the following non-operated interests in five licences in the Norwegian 2014 APA Licensing Round. These licences do not carry firm well commitments and are in locations adjacent to current areas of interest in Norway.

PL 788: 34/9 and 35/4, 5, 7, 8, 10

Wintershall 50%

Cairn 50%

PL787: 35/9

Bayerngas 40%

Wintershall 30%

Cairn 30%

PL 790: 34/2, 5

Det norske 50%

Spike 25%

Cairn 25%

PL 159 E: 6507/3

Statoil 42%

E.ON 40%

Cairn 18%

PL 800: 6508/1, 2

EnQuest 35%

Cairn 35%

Skagen44 30%

Adapted from a press release by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/21012015/north-sea-update%E2%80%93completion-of-catcher-farm-out-and-norwegian-licence-awards/