Cairn is an independent oil and gas exploration and production company. The main area of focus is South Asia.

            Red = 25 day moving average.           Green = 200 day moving average.

Cairn AGM was held on 19 May. They will host a visit to Greenland for analysts and investors from 23 - 25 May and will display a presentation on their web site on 24 May. They have agreed with Vedanta to extend the deadline for a deal to sell a 40% stake in Cairn India to Vedanta pending agreement from the Government of India.(See Interim Management Statement dated 19 May on Cairn web site) If this deal goes ahead, proceeds should amount to about 5.8B. Their current stock market value is about 6B. They will retain a stake of 22% in Cairn India. Drilling of 4 wells offshore Greenland is imminent. This news does not seem to be reflected in the share price.

i confess that i haven't followed CNE for many a long day, and indeed it seems to have fallen from the limelight in the last year or so.
the comparative chart over the last year shows how CNE (blue) performance has badly lagged behind TLW (red) and PMO (green)
i dare say the optimist would say that implies that CNE is undervalued or similar, but my own view is that i would not be overly-tempted to buy until there is some decent upside movement .... indeed it is arguably of some concern that sp is struggling to break back north of the 200 dma

i'll have to find an alternative to PMO as 4:1 share split this morning makes that chart meaningless

==============

i now see the chart has been corrected to allow for the share split

Thanks for your views, Cynic

Hey, where's the oil in Greenland?

Matrix has slashed its target price for Cairn Energy and maintained its hold rating on the stock, saying that chances are running out for the oil explorer.

There are now only three opportunities for drilling success this year in Greenland, and the chances for achieving it look slim, said analyst Charlie Sharp.

The comments come two days after the group announced that the well on the Lady Franklin Block offshore Greenland reached target depth and is being plugged and abandoned.

The target price is lowered from 410p to 370p.

Cairn abandons Greenland well
StockMarketWire.com
Cairn Energy has plugged and abandoned a well offshore Greenland.

Cairn said the Delta-1 well which was targeting the Cretaceous section beneath the Tertiary volcanic, reached a total depth at 2,977m still within Tertiary volcanics without encountering hydrocarbon shows.

The well was drilled by the Leiv Eiriksson semi-submersible rig which will move south shortly and start operations to re-enter the AT7-1 and drill to the planned TD.

The well, which is in the Atammik block, is located in 909m of water and 198km offshore Nuuk.

This well was temporarily suspended to allow the Leiv Eiriksson to drill the Delta-1 well to optimise the drilling time in the West Disko area.

Cairn also said the Ocean Rig Corcovado has moved 597km south from the Eqqua Block, to the Atammik block, and has started drilling the AT2-1 well, located in a water depth of 1,045m and approximately 198km offshore Nuuk, as a fifth well in the 2011 exploration drilling campaign.

At 9:48am: (LON:CNE) Cairn Energy share price was -13.25p at 282.35p

Cairn hits dry well, as Tullow makes new oil discovery



Rowena Mason, 18:30, Wednesday 28 September 2011

It was a tale of contrasting fortunes for the FTSE 100 (Euronext: VFTSE.NX - news) 's two biggest independent explorers, as Cairn Energy (LSE: CNE.L - news) came up with its sixth dry well in Greenland and Tullow Oil (Stuttgart: 591219 - news) made a new discovery in Ghana.

Cairn's share price dropped a further 5pc to 281.62p, after it did not find oil in the third well it has drilled this year.

The company did not find any success last year either and has only two more wells to go before the freezing Arctic winter weather stops work for the rest of 2011.‎

Cairn has placed all its hopes on finding oil off Greenland, after selling most of its Indian assets to Vedanta for $9bn (5.5bn). It has almost completed this deal after more than a year of delays. Some money will be returned to shareholders and the rest will be used to fund its drilling programme.

It has pledged to spend $600m this year drilling off Greenland, which it hopes will be the world's big new oil frontier. The company has found traces of oil in previous Greenland wells but not enough to make them worth developing.

Meanwhile, FTSE 100 rival Tullow Oil made an oil discovery in Ghana, where it started producing for the first time earlier this year. Tullow, which recently also struck oil off French Guiana, owns almost half the Enyenra discovery.

However, its share price dropped slightly to 13.20. Investors are waiting nervously to see whether the company can manage to strike a good deal with the Ugandan government over the $10bn development and infrastructure for its giant Lake Albert field with two partners - CNOOC (HKSE: 0883.HK - news) and Total (Euronext: FP.NX - news) .

Approval was meant to be given for CNOOC and Total's participation earlier this month, but the parties are still wrangling over a "stabilisation clause". This clause, opposed by the Ugandan government, would make the oil companies more protected from political instability, such as tax changes

Should have included Salamander they are experts at dusters.

Note from Oriel Secs:
"Cairn Energy (CNE, HOLD, 275p) - Greenland update, little further encouragement
Cairn has completed the AT7 well offshore Greenland.
Having encountered 53m of reservoir quality sands as previously announced, MDT samples taken revealed only mud filtrate. Further samples have been sent to labs for analysis but at this stage the interval is interpreted to be water wet.
The company also confirmed that the AT2 well has been plugged and abandoned with minor hydrocarbon shows as previously announced. This now concludes the latest drilling programme in Greenland which, whilst having some minor encouragement, has failed to yield a discovery. Activity on their licences will continue in 2012 with seismic acquisition and interpretation ongoing but with plans to farm-out their position it is highly unlikely in our view that we will see any drilling in Greenland next year.
Although this news should not be a surprise to the market, the shares are likely to come off but this could open up a buying opportunity with the Vedanta deal inching towards completion and a pro-forma NAV post the deal of c310-320p/sh."

Part sale of shareholding in Cairn India Limited ("Cairn India") to Vedanta Resources plc ("Vedanta")
Vedanta has confirmed that it has now satisfied the conditions under the Sale and Purchase Agreement for the acquisition of a controlling shareholding in Cairn India.

As previously announced, Cairn intends to return a substantial proportion of the proceeds from the sale to shareholders. A further announcement in this respect will be made in due course.

Cairn will now retain an approximate 22 per cent shareholding in Cairn India.

Cairn and Vedanta Transaction Completed
Cairn is pleased to announce that the Transaction has now completed. Net proceeds to Cairn from the sale of a 30 per cent shareholding in Cairn India were $4.1 billion in cash. In July 2011, Cairn completed the sale of a 10 per cent shareholding in Cairn India to Vedanta for net proceeds of approximately $1.4 billion in cash.

Following the Transaction, Cairn retains an approximate 22 per cent shareholding in Cairn India.

Cairn now proposes to return approximately $3.5 billion of the sale proceeds to shareholders. The return of cash is expected to be made in a manner that will provide shareholders with an element of choice as to when and in what form they receive the cash. A further announcement will be made in due course.

Monday =

• Cairn, the Edinburgh-based oil explorer, issues a pre-close trading update today. Investors will be watching for any clues on the company's strategy following a series of dry wells in Greenland last year. Cairn has been in talks with potential partners for its Greenland campaign, while looking for new ventures elsewhere. Rumours abound that it could buy a stake in Rockhopper's Falklands discovery.

SP on the move?

CNE have done a reverse split,approx 1 for 3. In the process they have landed CFD holders with an income tax bill. On 5th Feb my shares were worth £2,910, on 6th they were worth £1310 and my account was credited with a £1600 dividend payment. Cash position flat, but I may have to pay income tax on the £1600 divi.

I am mystified by the corporate action. Does anyone have an explanation??

Bobcolby..I shall double check but I am sure that for normal shares this CNE dividend is treated as a capital gain according to Barclays stockbrokers letter, not dividend income.

Tks JJ50

Cairn Energy (LSE: CNE.L - news) , which added 11.7 to 356.6p as two brokers upped their price target for the oil explorer after adjusting for a special dividend payment and share consolidation on Monday.

Having met with management last week, UBS (NYSEArca: DJCI - news) analysts added they were more comfortable with the Cairn story, but they still did not see a compelling enough reason to buy the stock and kept their “neutral” rating.

Time to climb aboard the ride back up!

StockMarketWire.com
Cairn Energy has confirmed that the FAN-1 exploration well, offshore Senegal, has discovered oil. The well, located in 1,427 metres (m) water depth and approximately 100 kilometres offshore in the Sangomar Deep block, has reached a Target Depth (TD) of 4,927 m and was targeting multiple stacked deepwater fans. Preliminary analysis indicates: - 29m of net oil bearing reservoir in Cretaceous sandstones

- No water contact was encountered in a gross oil bearing interval of more than 500m

- Distinct oils types ranging from 28° API up to 41° API indicated so far from a number of oil samples recovered to surface

- Initial gross STOIIP estimates for the FAN-1 well range from P90, 250 mmbbls, P50, 950 mmbbls to P10, 2,500 mmbbls and are broadly in line with pre-drill STOIIP estimates

As stated prior to the commencement of operations there are no plans for immediate well testing. Further evaluation will now be required to calibrate the well with the existing 3D seismic in order to determine future plans and optimal follow up locations to determine the extent of the discovered resource. Once operations are completed on the FAN-1 well, the rig will move to complete the second well, SNE-1 where the top hole has been drilled pending re-entry. This Shelf Edge Prospect targeting a dual objective in 1,100m water depth is in the Sangomar Deep block. The FAN-1 well was drilled using the semi-submersible drilling unit "Cajun Express". It is the third well in Cairn's North West Africa programme and first in Senegal. Cairn has a 40% Working Interest (WI) in three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore and Rusifique) ConocoPhillips has 35% WI, FAR Ltd 15% WI and Petrosen, the national oil company of Senegal 10% WI. The three blocks cover 7,490 km2.

Chief executive Simon Thomson said: "The oil discovered in the FAN-1 prospect is an important event for Senegal and the Joint Venture.

"£We have encountered a very substantial oil bearing interval which may have significant potential as a standalone discovery. Furthermore, this result materially upgrades the prospectivity of the block with a proven petroleum system and a number of deep fan and shelf prospects established.

"Work is already under way with the joint venture partners to determine follow up activity which is targeted for 2015 onwards.

"Cairn looks forward to working with the Government of Senegal and our partners to realise the full potential from this large acreage position off the West coast of Senegal."