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.

StockMarketWire.com
Cairn Energy Tuesday swung to a loss for the first half of the year as output at its Kraken development in the North Sea was hurt by disruptions.

For the six months to 30 June, the company reported a loss before tax of $602.9m compared with a profit of $77.7m a year earlier. Revenue rose to $182.4m from $10.8m for the first half of 2017.

The downturn in performance comes as average gross production at Kraken during the half came in at about 30,700 barrels of oil per day, weighed down by disruptions, owing to downtime and other factors.

Gross production improved, however, rising to levels in a range of 35,000 and 40,000 barrels of oil in August. Demand for cargoes continued to be strong as pricing relative to Brent is in line with expectations, the company said.

The company also reported an operating loss of $34.5m, compared with an operating loss of $52.4m a year earlier.

The company forecast a capital expenditure of US$124m on the Kraken, Catcher, Senegal and Nova developments and estimated exploration and appraisal expenditure of US$72m across the portfolio.

The company said its non-operated Nova development in Norway is expected to deliver first oil in 2021 with peak net production to Cairn of 10,000 bopd.

JP Morgan Cazenove today reaffirms its overweight investment rating on Cairn Energy PLC (LON:CNE) and raised its price target to 306p (from 241p).

Peel Hunt today reaffirms its add investment rating on Cairn Energy PLC (LON:CNE) and cut its price target to 260p (from 280p).

StockMarketWire.com
Shares of Cairn Energy edged higher on Tuesday after it forecast a rise in annual oil and gas production for 2019.

Full year production, net to Cairn, for 2019 was estimated to be 19,000 to 22,000 barrels of oil equivalent, above the production of 17,500 boepd averaged reported in 2018.

Oil and gas sales revenue was $395m at an average realised price of US$68 per boe and average production cost was US$20 per boe for the year ended December 2018.

Capital expenditure for 2019 was estimated at about $305m, below the $335m seen in 2018.

The company said it would target 'significant' exploration opportunities for 2019, backed by a strong balance sheet and cash flow.

'The SNE and Nova development projects are progressing on track, evaluation of the recent Agar discovery is ongoing and we look forward to commencing a material exploration drilling programme in 2019 with up to seven wells offshore Mexico, the UK and Norway targeting a total gross volume in excess of one billion barrels,' said Simon Thomson, Chief Executive, Cairn Energy.