Cairn India's 1Q Results for Period ended 30th June, 2014

Cairn India Limited (CIL), one of the fastest growing energy companies in the world, today announces its quarterly financial results for the period ending 30th June, 2014. Source: 2013 Platts Top 250

Global Energy Rankings.

Mr. Sudhir Mathur, Interim CEO, Cairn India said,“In line with our vision to contribute to the nation’s energy security, we are confident of not only achieving the stated exploration target of 3bn barrels of hydrocarbons in-place, ahead of schedule, but also of adding another 3 bn barrel to our un-risked prospect inventory. With multi-Tcf potential, we expect gas to be a significant contributor in our product mix. Before end of financial year 2015, we anticipate doubling of gas production from Rajasthan. Our two main projects of enhanced oil recovery and debottlenecking Mangala Processing Terminal are as per schedule.”

Q1 FY 15 Highlights
Financial:
*Profit After Tax (Excl exceptional items) of US$ 455 mn, Cash EPS of $.3
*Generated Cash Flow From Operations of US$ 474 mn
*High Gross capex US$ 412 mnled by development activity in RJ
*Gross contribution of >US$ 1 bn to the exchequer

Production:

*Average daily gross operated production of 217,869 boepd (226,597 boepd including internally consumed gas) during the quarter
*Rajasthan production at 183,164 boepd, in line with FY15 guidance
*Ravva production at 23,940 boepd, 4D infill wells contributing successfully
*Cambay production at 10,765 boepd, sustaining well
 

Rajasthan Exploration:
*Established 1.2bn boe of hydrocarbons in-place, since resumption of exploration in Rajasthan. An additional ~0.6bn boe has been discovered and is either currently undergoing testing or is awaiting testing
*Extended a significant existing gas play, with multi-TCF potential, in and around the Raageshwari Deep gas (RDG) field.
*We anticipate establishing an additional ~1.2bn boe hydrocarbons in-place during FY15/16, to achieve the stated in-place target of 3bn boe, significantly ahead of schedule and taking total Rajasthan discovered hydrocarbons in place to approximately 7 billion

*An additional un-risked prospect inventory potential of 3 billion boe identified, to be drilled up in future exploration campaigns, beginning FY16
* A significant shift from exploration to appraisal drilling is underway in the current financial year, to accelerate 2C-2P conversion and monetization
* All 7 new exploration and appraisal wells drilled in Q1 FY15 encountered hydrocarbons, opening up important new discoveries and adding significant potential resources
 

Rajasthan Gas Development:
*Acquiring equipment to double RDG production volumes by Q4 FY15
*Significant progress made towards technical alignment with JV on the RDG Field Development Plan
*Front End Engineering and tendering for construction of new pipeline and facilities underway for the gas development considering the large gas potential
 

Rajasthan Oil Development:
*MBA EOR project witnesses unprecedented development activity
*On track for first polymer injection at Mangala by Q4 FY15, to enhance oil recovery rates
*Construction of surface facilities including the central polymer facility has commenced,
major equipment at site
*Drilling by two high performance rigs has begun for EOR wells
*Initial assessment of ASP pilot for EOR successful, suggest good oil bank formation
*Barmer Hill and Satellite fields - Undertook the largest tight oil development activity to date
*Dedicated horizontal wells drilling campaign for tight oil initiated successfully
*Adopt tight oil drilling technologies in Northern BH, pumped ~250,000 lbs of proppant
*Production commenced from Mangala and Aishwariya BH fields; initial production rates encouraging
*Three satellite fields including Raag S-1 contribute to production; NI and Guda to start production in Q2 FY15