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.

Credit Suisse comment today:
"Understanding risks presents opportunities
Positioning for a recovery in oil prices: Investors often look to the E&P sector as a way to play a recovery in the oil price, and we think some companies are smarter ways to play a recovery than others from a risk/reward perspective. When thinking of how to position for a recovery in oil prices, we analyse E&Ps through a five part framework involving: i) balancing oil price leverage with funding risk; ii) ability to refinance, iii) project execution risk, iv) exploration upside and v) M&A.

Cairn Energy (upgrade to Outperform from Neutral, TP 255p from 215p) is our top pick. It is on the verge of returning to production in 2017, re-establishing itself as a full-cycle E&P company that funds future exploration from organic cash flows. It also has exposure to an exciting oil discovery in Senegal, where the current ~500mmbbl resource has the potential to grow in size towards the large 2.74bn oil in place estimate."

This looks cheap at 185p.

StockMarketWire.com 19/05/17
Cairn Energy has a strong platform for further activity this year after excellent progress in 2016, shareholders at the annual general meeting today will be told.

Chief executive Simon Thomson will say: "Cairn's strategy is to deliver sustainable value growth for shareholders from a balanced portfolio of exploration, development and production assets.

"Our exploration focus is on acreage in frontier and emerging basins which offer the greatest value potential, funded from production assets and balance sheet strength.

"In the past year, we have made excellent progress on our strategic objectives.

"We have created a strong platform for future growth, with active positions in various geographies providing significant acreage positions of technical and commercial value.

"In Senegal, we have confirmed the scale and potential of the world class SNE field, having successfully drilled nine wells in three years.

"Following appraisal success in 2016 which saw us upgrade our resource estimates, we commenced the third phase of drilling in January and have drilled three successful wells this year with a further exploration well shortly commencing.

"The near-term focus in Senegal is defining the scale and phasing of the overall SNE field development including the balance between the number of drilling centres, type and number of wells and the subsea infrastructure.

"As previously indicated, we aim to submit an Exploitation Plan to the Government of Senegal in 2018 with a Final Investment Decision within twelve months thereafter and first oil in the period 2021 to 2023.

"Cairn currently anticipates providing an update on contingent resource estimates at the half year in August when the results of the latest wells will be further analysed and incorporated into the design and development plan for the SNE field.

"In the UK North Sea, both the Catcher and Kraken developments remain significantly below their original budgets and both are on schedule to target first oil this year.

"Together they will deliver around 25,000 barrels of oil a day on plateau net to Cairn, generating significant cash flows for reinvestment.

"Elsewhere, we have secured additional licences both in the North Sea and Barents Sea and farmed in to a number of interesting prospects offshore Ireland, where we plan to drill an exploration well in the Southern Porcupine basin this summer.

"We are fully funded to deliver this programme, and meet all our commitments.

"We currently have ~US$254 million cash on our balance sheet, while our Reserve Based Lending facility is undrawn.

"International arbitration proceedings are progressing in respect of Cairn's claim under the UK-India Bilateral Investment Treaty for the restitution of c. US$1billion of assets frozen in 2014, with a date set for the final arbitration hearing in January 2018.

"We expect a ruling soon thereafter and remain confident in our position.

"To conclude, 2016 was a year of excellent progress, providing a strong platform for further activity in 2017.

"This year, we will commence production in the North Sea, progress the SNE field towards development, drill material exploration wells in Senegal and Ireland, and continue to work on new exploration and development opportunities both from the existing asset base and from new ventures."

Macquarie today reaffirms its outperform investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 270p (from 246p).

StockMarketWire.com
Cairn Energy has issued an update on the tax dispute in India and said it had a high level of confidence in its claim under the UK-India Bilateral Investment Treaty.

Cairn announced in March that it had received confirmation from the Government of India (GoI) via the international arbitration tribunal that dividends of US$53m due from Cairn India Limited were no longer restricted, and Cairn requested the immediate release of that sum from CIL.

On 9 June, the tribunal issued a formal order memorialising the numerous confirmations from the GoI that the dividends were no longer restricted and authorising that order to be provided to CIL (now named Vedanta Limited following the merger of CIL and VIL). An update said: "However, on 16 June the Indian Income Tax Department (IITD) issued an order to VIL directing it to pay over any sums due to Cairn.

"Sums due to Cairn from VIL now total US$104m, including historical dividends of US$53m and a further dividend of US$51m after the merger of CIL and VIL.

"Notwithstanding this action by the GoI, international arbitration proceedings are progressing in respect of the group's claim under the UK-India Bilateral Investment Treaty."

Cairn said it was seeking full restitution for treaty breaches resulting from the expropriation of its investments in India in 2014, the attempts to enforce retrospective tax measures and the failure to treat the company and its investments fairly and equitably.

Cairn added that it "has a high level of confidence in its case under the Treaty and, in addition to resolution of the retrospective tax dispute, its claim seeks damages equal to the value of the group's residual shareholding in CIL at the time it was attached (approximately US$1bn)".

The seat of the arbitration is The Hague in the Netherlands and final hearings for the tribunal are scheduled for January 2018.

StockMarketWire.com
Cairn Energy has secured interests in two licences in the Mexico offshore bid round.

The group said the licences (one operated and one non-operated) covered around 1,100 sq km in the Gulf of Mexico in the shallow water Sureste basin. - Block 7: ENI (45% operator), Cairn (30%), Citla (25%)

- Block 9: Cairn (65% operator), Citla (35%)

Cairn Energy chief executive Simon Thomson said: "We are delighted with these awards which we believe provide an exciting opportunity to build a strategic portfolio over time in this highly prolific yet under-explored region.

"As we build on the success of discoveries in Senegal it is important to access new acreage to provide exploration drilling opportunities in the future.

"Cairn and its partners have identified and secured our favoured blocks with multiple stand-alone prospects and numerous follow-on tie-back opportunities based on 3D seismic data.

"We are partnered with ENI, an experienced explorer and operator in Mexico, as well as Citla Energy, a Mexican focused, exploration company and look forward to working with our new partners and the Government of Mexico to deliver the work programme in the coming years."

StockMarketWire.com
Cairn Energy has confirmed that oil samples have been obtained from the FAN South-1 well in the South Fan prospect offshore Senegal.

Cairn said the Stena DrillMAX drill ship performance continued to be excellent and operations had been safely and successfully completed ahead of schedule and under budget following drilling and wire line logging operations. The well encountered hydrocarbon bearing reservoir (Lower Cretaceous) and oil samples were obtained.

It said preliminary analysis indicated 31 degree API oil quality and further work was being undertaken to integrate this discovery with FAN-1 to establish the potential commerciality of the deep water, basinal resource seen in these two wells.

FAN South-1 - located in ~2,175 metres (m) water depth, ~90 kilometres (km) offshore in the Sangomar Deep Offshore block and 30 km south west of the FAN-1 exploration well - reached total depth of 5,343m, targeting dual prospects: an Upper Cretaceous stacked multi-layer channelised turbidite fan prospect and a Lower Cretaceous base of slope turbidite fan prospect, similar to the FAN-1 oil discovery in 2014.

Cairn said FAN South -1 was being plugged and abandoned.

It said the rig was now moving location to commence operations at the SNE North exploration prospect, 15 km north of the SNE-1 discovery well and the most northerly location yet tested, on trend with the highly successful SNE field.

SNE North is targeting a prospective volume of more than 80 mmbbls of total resource in multiple objectives.

The well is located in ~ 900m water depth and the projected total depth of the well is 2,800m.

Chief executive Simon Thomson said: "FAN South is our 10th well in Senegal in the last three years and our second well to encounter oil in the deep portion of the basin, adjacent to the FAN discovery.

"The results of FAN South will be integrated with FAN-1 and SNE to help the joint venture's ongoing evaluation of the large, deep water basin potential offshore Senegal.

"As planning for the phased development of the SNE field moves ahead, we will shortly commence operations on the SNE North prospect which has the potential to enhance our total resources in Senegal."

StockMarketWire.com
Cairn Energy is encouraged by results from the SNE North-1 exploration well offshore Senegal.

Cairn said the well encountered oil and gas in the primary objective and oil in the deeper secondary objective, in a separate accumulation to the SNE field.

It said further work was being undertaken to establish the potential commerciality of this discovery and to integrate the results with the block wide data gathered to date.

It said the well result had positive implications for further hydrocarbon potential to the north of the structural trend containing the SNE field and SNE North-1 discovery well, as well as for broader exploration potential in the permit.

The well is located in ~900 metres (m) water depth, ~ 90 kilometres offshore in the Sangomar Deep Offshore block and ~15km north of the SNE-1 discovery.

The well reached a total depth of 2,837m ahead of schedule and under budget.

Cair said its preliminary analysis indicated:

- ~24m of gross hydrocarbon column across three intervals

- ~11m net condensate and gas in high quality reservoir in primary objective

- ~4m net oil in good quality reservoir in deeper secondary objective (occurring below the SNE field Oil Water Contact)

- A slightly lighter oil type of 35� API than that encountered in the SNE field

Cairn said this marked the end of the five well 2017 drilling campaign and SNE North-1 was being plugged and abandoned and the Stena DrillMAX rig would be released.

It said the joint venture was reviewing the potential for further exploration drilling operations next year within the Rufisque, Sangomar and Sangomar Deep production sharing contract area.

Chief executive Simon Thomson said: "The SNE North well results are encouraging in terms of further prospectivity and implications for the full block potential offshore Senegal.

"We are delighted to have completed a safe and successful drilling programme in Senegal this year with the Stena DrillMAX.

"An update on resources and the SNE development plans will be provided at our interim results later this month."

StockMarketWire.com
Cairn Energy swung into profit after strong progress across its business in the six months to the end of June.

Cairn posted a profit of $314m for the period compared with a loss of $38m last time.

The group said that first oil production commenced from the Kraken field in late June and Catcher production was scheduled to be on stream by the end of 2017.

It said its funding position was enhanced during the first half of 2017 with the completion of a NOK500 million exploration finance facility which allowed the company to borrow against Norwegian tax refunds on exploration expenditure, and US$75m proceeds from a stream agreement with FlowStream Commodities in exchange for an initial 4.5% share of production from Kraken (stepping down to a 1.35% share once FlowStream achieved a 10% return).

Chief executive Simon Thomson said: "Cairn continues to deliver strong progress across the business.

"In the North Sea, Kraken has commenced production and Catcher is scheduled for first oil later this year.

"In Senegal, planning work has commenced on the phased development of the world class SNE field.

"Cairn has also added to its exploration portfolio with exciting new opportunities in Norway, Ireland and Mexico creating additional drilling prospects in the near term.

"With a strong balance sheet and imminent cashflows, Cairn remains well funded to create and capture value for our shareholders."

Up 8.5% at the mo on that news.

RBC Capital Markets today reaffirms its outperform investment rating on Cairn Energy PLC (LON:CNE) and cut its price target to 230p (from 270p).

Deutsche Bank today reaffirms its buy investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 240p (from 235p).

StockMarketWire.com
Cairn Energy has issued a procedural update on its dispute with the Indian government under the UK India Bilateral Investment Treaty.

Cairn said: 'The arbitration proceedings are well advanced, and the tribunal and parties have now agreed the process and timetable for finalising document production, submissions and hearings.

'This includes some extensions to the previously agreed schedule, and taking into account the tribunal and parties' availability, the final hearing has now been scheduled for August 2018.

'The tribunal stated that it expects the parties to strictly adhere to the deadlines set out in the amended procedural calendar and it will make appropriate arrangements to progress with the drafting of the award as expeditiously as possible.'

SYDNEY/DAKAR (Reuters) - Oil exploration company Cairn Energy (CNE.L) is in talks with BP to sell a 30 percent stake in its deepwater SNE field offshore Senegal, which could be valued at around $600 million, banking sources and a Senegal oil ministry source said on Monday. “We are aware that BP wants to acquire a stake in Cairn Energy, but they are awaiting validation by the state (of Senegal),” an adviser to Senegal’s oil minister, who declined to be named, told Reuters by telephone.

StockMarketWire.com
Cairn, one of Europe's leading independent oil and gas exploration and development companies, said both the Kraken and Catcher developments in the UK North Sea delivered first oil production while In Senegal it completed a successful third phase of drilling.

'Over the last twelve months, Cairn has achieved several strategic milestones and is well positioned to deliver on its strategy in 2018,' said Simon Thomson, Chief Executive, Cairn Energy PLC. 'Cairn is funded in respect of all capital commitments with a strong balance sheet and growing production cash flows.'

The company said the Catcher and Kraken developments in the UK North Sea both achieved first oil in 2017 and are ramping up to plateau production, following which they are expected to deliver significant cash flows for reinvestment. Full-year production, net to Cairn, for 2018 is estimated to be 17,000 to 20,000 bopd with plateau production from Catcher and Kraken achieved by mid-year.

'Cairn offloaded its first Kraken cargo of ~386,000 barrels (net of the Flowstream 4.5% share) in Q4 2017 recording revenue of ~US$20m,' Cairn said in a statement.

The company said that in Senegal its SNE field appraisal and concept select definition are concluding, for the first phase of development of the extensive resource base, and aims to have a government- approved exploitation plan in place by the end of 2018 with a target of first oil in 2021-2023.

In Norway an extensive exploration drilling campaign is underway for 2018, 2019, with plans to drill up to ten wells, targeting more than 1.5 boe gross unrisked resources across a variety of play types in the UK and Norway, including the Barents Sea,' Cairn said in a statement. 'The Skarfjell (Cairn 20% WI) JV plan for development and operation (PDO) is anticipated in H1 2018, with first oil targeted in 2021 and expected plateau production of 50,000 bopd (~10,000 bopd net to Cairn).'

Cairn secured two new licences in the Mexico offshore bid round in the first half of 2017. 'The licences, one operated and one non-operated, are located in the highly prolific yet under-explored Sureste basin,' Cairn said in a statement. 'Cairn anticipates exploration drilling to commence in 2019 on both blocks.'

Cairn reported group net cash at 31 December 2017 was about US$56m, while capital expenditure for second half of 2017 was about US$205m.

JP Morgan Cazenove today reaffirms its overweight investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 241p (from 228p).

Barclays Capital today reaffirms its overweight investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 280p (from 265p).

Morgan Stanley today upgrades its investment rating on Cairn Energy PLC (LON:CNE) to overweight (from equal weight) and raised its price target to 300p (from 270p).

StockMarketWire.com
Cairn Energy reported a profit of $263.1m in 2017, compared with a loss of $95m the previous year as production got underway from its Kraken and Catcher North Sea fields.

Catcher and Kraken developments in the UK North Sea achieved first oil production in 2017, with total project capex expenditure estimated by the operators to be about 30% and 25% below original estimates.

UK North Sea 2018 full year production, net to Cairn, is estimated to be 17,000 to 20,000 barrels of oil per day (bopd), while project commissioning on both fields expected to be completed in first half of 2018.

Full capacity production, meanwhile, is expected to be achieved by mid-year, with peak net production to Cairn of 25,000 bopd.

In Norway, Nova - formerly Skarfjell - first oil is targeted in second half of 2021 and expected to deliver plateau production of 50,000 bopd.

Cairn's North Sea exploration drilling campaign was said to be underway for 2018 to 2019 with plans to drill up to ten wells over the next two years targeting more than 1.5 billion boe gross unrisked resources.

In Senegal, five successful wells drilled in 2017 as the third phase of drilling took place, completing the appraisal activity for the development of SNE. Operations were delivered ahead of schedule and under budget.

The evaluation report is expected to be submitted to the government of Senegal in H1 2018 with the formal transfer of Operatorship (TOO) to Woodside expected to take place in H2 2018, subject to government approval.

Simon Thomson, Chief Executive, Cairn Energy PLC said: 'With first oil production from its North Sea developments, Cairn continues to deliver a strong and balanced business with a growing production base supporting further development and a multi-well exploration programme offering significant growth potential.'

'The SNE field in Senegal is now fully-appraised and the Joint Venture is targeting Government approval of the Exploitation Plan by the end of this year.'

'The company continues to maintain balance sheet strength and financial flexibility as we focus on creating, adding and realising value for shareholders from a portfolio of attractive exploration, development and production assets.'

Deutsche Bank today reaffirms its hold investment rating on Cairn Energy PLC (LON:CNE) and cut its price target to 230p (from 240p).

Jefferies International today reaffirms its hold investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 265p (from 235p).

UBS today reaffirms its buy investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 300p (from 280p).