Cairn doubles profit on high energy prices

Cairn Energy PLC, Edinburgh, Tuesday reported record results as high oil and gas prices drove its post-tax profits for 2000 up to �41.6 million, more than 2.5 times its 1999 results. Despite its average production falling to 20,206 boe/d from 21,196 boe/d, the Edinburgh-based independent saw its total turnover climb 51% from the year before to �116 million in 2000.


By the OGJ Online Staff


LONDON, Mar. 6�Cairn Energy PLC, Edinburgh, Tuesday reported record results as high oil and gas prices drove its post-tax profits for 2000 up to �41.6 million, more than 2.5 times its 1999 results.

Despite its average production falling to 20,206 boe/d from 21,196 boe/d, the Edinburgh-based independent saw its total turnover climb 51% from the year before to �116 million in 2000.

The company's overall production costs/boe stayed steady, rising to $5.28 from $5.23.

Cairn said it aimed to double its capital expenditure this year from �48.3 million in 2000, chiefly to build on its exploration programs in core areas, including the Indian subcontinent.

Bill Gammell, Cairn's chief executive, said, "Our continuing focus on exploration is materially increasing the value of our assets in the Indian subcontinent.

"Demand for energy in India remains unfulfilled and Cairn's assets in India and Bangladesh are strategically placed to supply this growing market," he said.

Gammell said the future of the company's exploration portfolio was "solidly underpinned" by its stakes in Ravva oil and gas field in India and Sangu gas field in Bangladesh.

Ravva, which Cairn operates, flowed 48,800 b/d of oil and 24.5 MMcfd of gas last year, while Sangu, where Cairn holds a 37.5%, produced 123 MMcfd.

The company made four hydrocarbon discoveries on Block CB-OS/2 off Western India last year.

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