Cairn Energy PLC Half Year Results Presentation ... - The Group

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Cairn Energy PLC Half Year Results Presentation ... - The Group

DISCLAIMERThese materials contain forward-looking statements regarding Cairn, our corporate plans, future financialcondition, future results of operations, future business plans and strategies. All such forward-lookingstatements are based on our management's assumptions and beliefs in the light of information availableto them at this time.These forward-looking statements are, by their nature, subject to significant risks and uncertainties andactual results, performance and achievements may be materially different from those expressed in suchstatements. Factors that may cause actual results, performance or achievements to differ fromexpectations include, but are not limited to, regulatory changes, future levels of industry product supply,demand and pricing, weather and weather related impacts, wars and acts of terrorism, development anduse of technology, acts of competitors and other changes to business conditions.Cairn undertakes no obligation to revise any such forward-looking statements to reflect any changes inCairn's expectations with regard thereto or any change in circumstances or events after the date hereof.09S0053GH00 Discovering hidden value through entrepreneurial exploration2


AGENDA■ Introduction Sir Bill GammellGroup Chief Executive, Cairn Energy PLCGroup Financial Overview Jann BrownGroup Finance Director, Cairn Energy PLC■ Rajasthan Project Rick BottChief Operating Officer, Cairn India Ltd■ Future Resource and Dr Mike WattsValue PotentialGroup Deputy Chief Executive, Cairn Energy PLC■ Concluding Remarks Sir Bill GammellGroup Chief Executive, Cairn Energy PLC09S0053GH00 Discovering hidden value through entrepreneurial exploration3


IntroductionSir Bill Gammell, Group Chief Executive - Cairn Energy PLCDiscovering hidden value through entrepreneurial explorationDiscovering hidden value through entrepreneurial exploration


GROUP OVERVIEW■India■Focus on delivering material and growing resource base■Government of India to inaugurate Rajasthan firstGreenlandPapuaNew Guineaoil production■Initial Rajasthan pricing agreed■Greenland■Initial prospect and lead inventoryconfirms multi million barrel unriskedexploration potentialHead OfficeEdinburghIndiaSouth AsiaBangladesh,Nepal, Sri Lanka■Corporate■Financial and operational flexibility■Long term growth potentialMediterraneanAlbania, TunisiaApplications: Spain09S0053GH00 Discovering hidden value through entrepreneurial exploration5


Financial OverviewJann Brown, Group Finance Director - Cairn Energy PLCDiscovering hidden value through entrepreneurial explorationDiscovering hidden value through entrepreneurial exploration


FINANCE - OverviewKey Accounting Numbers* H1 2009$mH1 2008$mRevenue 81 180Gross Profit 18 109Impairments / unsuccessful exploration (24) (25)Transaction gains and losses - 359Net finance (costs) / income (7) 4(Loss) / Profit after tax (20) 375Clean net income ** 30 56* Excludes the exceptional Ravva provision** Excludes unsuccessful exploration costs, impairment, foreign exchange, negative goodwill and gains on disposal09S0053GH00 Discovering hidden value through entrepreneurial exploration7


FINANCE – Cash BalancesPeriod end net cash position:CIL$mPLC / Capricorn$mGroup$mCash 1,058 423 1,481Debt (850) - (850)Net Cash 208 423 631Additional debt capacity if required09S0053GH00 Discovering hidden value through entrepreneurial exploration10


FINANCE – Full Year Capex Guidance2009 India Total ~$920m 2009 Greenland / elsewhere Total ~$65mDevelopment /Producing93%Other1%Exploration /Appraisal6%Exploration /Appraisal96%Other4%■■Rajasthan 2009 Development spend ~$860mGreenland exploration spend ~$30m09S0053GH00 Discovering hidden value through entrepreneurial exploration11


FINANCE – Summary■Balance sheet strengthened by placing■Rajasthan cash flows provide platform for future growth■Reinvestment opportunities in both Rajasthan and Greenland09S0053GH00 Discovering hidden value through entrepreneurial exploration12


Rajasthan ProjectRick Bott, Chief Operating Officer - Cairn India LimitedDiscovering hidden value through entrepreneurial explorationDiscovering hidden value through entrepreneurial exploration


RAJASTHAN - Overview■■■■■■■25 Fields - 3 largest Mangala, Bhagyamand Aishwariya (MBA) under developmentCombined Upstream / Midstreamworkforce >16,000Phased integrated development focusedon Mangala Processing Terminal (MPT)Processing capacity 205,000 bopdFirst Mangala production by truckingQ3 2009;■ By pipeline target end 2009MBA peak production 175,000 bopd>3,000 km 2 approved Development Area09S0053GH00 Discovering hidden value through entrepreneurial exploration14


RAJASTHAN - Building For GrowthProjectedProduction60,000 –100,000bopdCurrentGovernmentApprovedProduction175,000bopdCurrentGovernmentApprovedProductionCapacity205,000bopd* Flexibilityto cater forpotentialfuture growth* Subject toadditionalinvestment andGovernmentapprovalMangalaDiscoveryMBAFieldsMangalaProcessing TerminalInfrastructureCapacity09S0053GH00 Discovering hidden value through entrepreneurial exploration15


RAJASTHAN - Realising The PotentialBarmer Hill unconventional resources■ Studies: cores analysis ongoing■ Initial pilot project:■■■Re-entry of Mangala and Aishwariya wellsTest stimulation and completions techniquesTest / drill / core selected further wells basedupon results3D oil and gas migration modelPlay based exploration and basin analysis■ Additional Data:3D Acquisition and depth imaging■ Studies: Major basin re-evaluationdefining new plays and prospects■ Drilling: High-grade near field prospectsand identify new play tests for multi-yearprogrammesSmall field development plans progressing09S0053GH00 Discovering hidden value through entrepreneurial exploration17


RAJASTHAN - Integrated Development■Train 1 facilities and truckinglogistics readyBhagyamMangala■Key elements to enable productionnow in place■ Safety systemsMPTAishwariyaWaterSystem■Intrafield pipelines■■■■Separation facilitiesExport facilities and tanksSteam generators and powerDevelopment drilling and Subsurface■ Three rigs(two development, one completion)■ 28 wells drilled■ 16 wells completed■ Reservoirs in line with expectationsTotal area under longterm contract:3,111 km 2 OilRaageshwariExport OilPipelineGasRaageshwariGas Terminaland Well Pads09S0053GH00 Discovering hidden value through entrepreneurial exploration18


RAJASTHAN - Upstream Construction Train 1 Ready09S0053GH00 Discovering hidden value through entrepreneurial exploration19


RAJASTHAN - Upstream Construction09S0053GH00 Discovering hidden value through entrepreneurial exploration20


RAJASTHAN - Commercial Production■ Trucking■ Government of India toinaugurate productionstart up August 2009■ Insulated tankers■ Coastal delivery point■ Small initial volumes■ Safe and operationallyefficient ramp-up09S0053GH00 Discovering hidden value through entrepreneurial exploration21


RAJASTHAN - Pipeline Construction■Line pipe laying ongoing■9 construction spreadscurrently active in Gujaratand RajasthanRajasthan MPTPanipat■Terminals andrelated facilitiesconstructionongoingKandlaRadhanpurViramgamMathura■Pre commissioningand pressure testinghas commencedMarineFacilities(2011)SalayaEssarRelianceKoyaliSchematicExisting PipelinesTruckingRefineryCairn Pipeline under constructionNodal point09S0053GH00 Discovering hidden value through entrepreneurial exploration22


RAJASTHAN - Pipeline Construction09S0053GH00 Discovering hidden value through entrepreneurial exploration23


RAJASTHAN - Crude Sales■ Highest realised price maximises Government of India(GoI) take and royalty for Government of Rajasthan■ Commercial terms and pricing negotiations for initial offtakeconcluded with GoI nominated buyers - IOC and MRPL■ Pricing based on comparable low sulphur crude - Bonny Light■ Multiple delivery points■ Pricing subject to GoI approval - Implied price realisationrepresents a 10-15% discount to Brent on basis of pricesprevailing for 6 months to June 2009■ Negotiations for further volumes with refiners ongoing09S0053GH00 Discovering hidden value through entrepreneurial exploration24


RAJASTHAN - Concluding Remarks■ Production due to start August 2009■Initial sales volumes and pricing agreed■ Trucking ramp up throughout H2 2009■Construction of Train 2 and Pipelinetargeted for completion end 2009,Train 3 by H1 2010■Schedule risk remains■Target current approved peak production of175,000 bopd by 2011■ Contribute >20% of India's domestic production■ Offset India's crude oil import dependency by ~7%09S0053GH00 Discovering hidden value through entrepreneurial exploration25


Cairn Group - Future Resource and Value PotentialDr Mike Watts, Group Deputy Chief Executive, Cairn Energy PLCDiscovering hidden value through entrepreneurial explorationDiscovering hidden value through entrepreneurial exploration


Group Future Resource and Value Potential - Rajasthan■■Focus on maximizingvalue throughstrategic prioritisationof activitiesGoal to add newreserves andproduction via:■ New play exploration■ Near field appraisal andexploitation■ Unconventional reservoirexploitation22fields2.132Billionboe3fields1,293mmbbls468mmbbls293mmbbls* SaraswatiandRaageshwari78mmbblsContingentOilResourceSTOIIPContingentGasResourceGIIPUnriskedProspectiveOil and GasResourcesSTOIIPBasinProspectiveIn PlaceResourceBasinContingentIn PlaceResourceSar. and Raag. STOIIPMBASTOIIPMangala*Aishwariya*Bhagyam** FDP Approved09S0053GH00 Discovering hidden value through entrepreneurial exploration27


GREENLAND - Overview■ USGS places Greenland inthe top ten “yet to find”hydrocarbon destinations ofthe worldDisko blocksBaffin Bay BasinBaffin BayBid Round2010North East GreenlandBid Round 2012Cairn BlocksCairn Prospecting LicenceWells■ Cairn initial prospect andlead inventory confirmsmulti-billion bbl unriskedexploration potential in theDisko areaGREENLAND■ Disko electromagnetic andwell site surveys underwayEncana blocksWest GreenlandBasin■ Variety of geological playtypes identified for the firsttime in south Greenland■ Further seismic infill andreconnaissance surveysunderway and planned■ Participation in future bidroundsSouthGreenlandBasins / SubBasinsProspectingLicenceEast Greenland09S0053GH00 Discovering hidden value through entrepreneurial exploration28


GREENLAND - July 2009East Coast Reconnaissance SeismicEast CoastBoard visitField tripIlulissat09S0053GH00 Discovering hidden value through entrepreneurial exploration29


GREENLAND - Ongoing Work ProgrammeBaffin Bay Basin■ 2008 Disko Seismic survey■ 2009 Seismic interpretation underwayProspects and leads inventoryCSEM, well site and multi beam surveysGradiometric gravity and magnetic surveyPreliminary pipeline route surveyWell planning for 2011 wells underway■ 2010 Licensing roundWest Greenland■ 2008 JV CSEM Survey■ 2009 CSEM results evaluationProspects and leads inventory in preparationWell planning underwaySouth Greenland■ 2008 Seismic Survey■ 2009 Seismic interpretation underwayInfill seismic SeptemberEast Greenland■ 2009 Prospecting licence awardedReconnaissance seismic survey underway■ 2012 Licensing round2010LicensingRoundSiggukEqquaAtammikLadyFranklinKingittoqNuukIlulissatQaqortoqSaqqamiutSalliitUummannarsuaqGREENLANDProspectingLicence2012LicensingRoundCairn Blocks09S0053GH00 Discovering hidden value through entrepreneurial exploration30


BAFFIN BAY BASINPotential Hydrocarbons GeneratedBaffin Basin and sub-basinsBaffin BayBasinNORWAY■Offshore undrilledBaffinBayGREENLAND■Basin modelling* of thekitchen area for the Diskoblocks indicatesCANADASiggukEqquaQaarsutIlulissatAasiaatUK■Hydrocarbon generativepotential of manyhundreds of billions of boeAtammikCentral Graben system at same scale■The fetch area for thelargest prospect has agenerative potential of>200 billion boeLadyFranklinNuukKingittoqSaqqamiutQaqortoqSalliit* Based on reasonable source rock thicknessesand quality assumptionsLABRADORUummannarsuaq09S0053GH00 Discovering hidden value through entrepreneurial exploration31


BAFFIN BAY BASINDisko Area ActivityCairn■ Electro magnetic (CSEM) survey■ 3 well site and multi-beam surveys■ Gradiometric gravity and magnetic survey■ Reconnaissance pipeline survey■ Ice management study and observation■ ~300 km 2D seismic■ Prospect and lead inventory■ Planning for 2011 wells underwaySiggukCairn (Op) 87.5%Nunaoil 12.5%Eqqua13 4Husky,Nunaoil5 6Hellefisk-1BaffinBayExxon,Chevron,Dong,NunaoilExxon,Husky,NunaoilP.A.ResourcesGRO-3DiskoGREENLANDQaarsutIlulissatAasiaatIndustry Activity■ Chevron, Dong, ExxonMobil drilling expected ~2011 / 2012■ Husky Energy 3D survey summer 2009Ikermiut-1Husky,Nunaoil78KangerlussuaqSisimiut■ TGS seismic survey Baffin Bay■ Pre qualification for Baffin Bay bid round H2 2009■ Baffin Bay bid round H1 2010Kangamiut-1Nikuk-2Nikuk-109S0053GH00 Discovering hidden value through entrepreneurial exploration32


BAFFIN BAY BASINDisko Area Current Prospect and Lead InventoryUnrisked In Place Potential■Disko blocks 1 and 3 currentinventory of 14 prospects andleadsProspects/ LeadsArea ofMaximumClosure(km 2 )ColumnHeight(m)WaterDepth(m)AVOResponse1 275 400* 340 2 145 400* 670 3 77 400* 370 4 166 400* 450 ■■Structures have very large areas ofmaximum closurePlays and individual prospectshave multi-billion barrel ormulti-Tcf in place potential *2009 well site surveys* Reservoir parameters taken from adjacent basins5 234 220 380 6 298 400* 370 7 185 150 500 8 156 400 430 9 213 400* 630 10 299 370 610 11 373 370 510 12 74 280 390 13 288 300 830 14 326 300 510 Assumptions: * 400m cut off column height09S0053GH00 Discovering hidden value through entrepreneurial exploration33


WEST GREENLAND BASINJV Joint Venture Activity(Operator Encana)SiggukQaarsutGREENLANDEqquaIlulissat■■2008 electro magnetic (CSEM) surveyresults evaluatedProspect and lead inventory inpreparationCANADAWestGreenlandBasin andsub-basinsEncanablocksLadyFranklinAtammikAasiaatNuukKingittoqCairn BlocksEncana / Cairn BlocksWells09S0053GH00 Discovering hidden value through entrepreneurial exploration34


SOUTH GREENLANDCairn Activity■ 2008 survey 30km grid■ 3,600 km 2D seismic infillprogramme (PGS) to commenceSeptember, 2009■ Conceptual gas developmentstudy completedPlate ReconstructionGREENLANDNuukSouth GreenlandIndustry ActivityQaqortoq■ Labrador licensing round September 2008■4 Blocks awarded■ ~12,000 km 2■■ ~equivalent to two UK North Sea quadrants■ ~$200 million work obligationsTGS regional gravity surveyLABRADORCairnblocks09S0053GH00 Discovering hidden value through entrepreneurial exploration35


SOUTH GREENLAND - Play TypesWater depths 80m - 2500m+WNWESESWNE2008 2D seismic, 30 km gridspacingCanyonPlay Types• Rifted fault blocks• Transpressional structures• Sediment drape• Slope and basin floor fans30 kmCompressionalStructureRotated Fault BlocksDrape55 kmNWSESWNEWNWESEGas cloudsabovestructuresDeep WaterFault Blocks20 kmCompressionalStructure55kmPossible Paleozoicsub basin25 kmWNWESESWNEWNWESESWNEMio – Plio?UnconformityChannelCutSedimentaryLobeFootwall ofLarge rotatedFault block?30 kmRotated Fault BlocksRotated Fault Blocks25 km09S0053GH00 Discovering hidden value through entrepreneurial exploration3625 km25kmSlumpedFault block


EAST GREENLANDCairn Activity■ Prospecting licence awarded■ ~4,000 km 2D seismicreconnaissance programme (PGS)underwayPlate ReconstructionGREENLANDEast GreenlandIndustry Activity■ German research vessel active■ ION GX technology 2D reconnaissanceseismic survey north east Greenland■ Shell Norway discovery likely reservoirprovenance East Greenland■ Pre qualification for Bid round 2011■ Bid round 2012UKShell NorwayDiscoveryMay 2009NORWAYCairn BlocksCairn Prospecting LicenceWells09S0053GH00 Discovering hidden value through entrepreneurial exploration37


Concluding RemarksSir Bill Gammell, Group Chief Executive - Cairn Energy PLCDiscovering hidden value through entrepreneurial explorationDiscovering hidden value through entrepreneurial exploration


CONCLUDING REMARKS■ India■ Focus on delivering material and growing resource base■ Government of India to inaugurate Rajasthan first oil production■ Initial Rajasthan pricing agreed■ Greenland■ Initial prospect and lead inventory confirms multi million barrel unriskedexploration potential■ Corporate■ Financial and operational flexibility■ Long term growth potential09S0053GH00 Discovering hidden value through entrepreneurial exploration39


Appendix09S0053GH00Discovering hidden value through entrepreneurial explorationDiscovering hidden value through entrepreneurial exploration


REST OF GROUP - MediterraneanTunisia■ Louza (Capricorn 100%)■ Exploration well 2010■ 20 million bbls unrisked prospect■ Nabeul (Capricorn 50%)■ Exploration well 2012■ 30 million bbls unrisked prospectJONI-5ALBANIAAlbania (Capricorn 100%)■ Joni-5■ 3D seismic 2009■ Exploration well 2010 / 2011■ 130 million bbls unrisked prospectTUNISIANABEULLOUZA09S0053GH00 Discovering hidden value through entrepreneurial exploration41


REST OF GROUPCarbonate Reef Build Up Play in Albania and Papua New GuineaAlbania■ Joni-5 prospect■ 3D seismic 2009RovestiMedusaAquilaFalcoJoni-5prospect■■Exploration well2010/11Unrisked 130 millionbblsITALYGioveExplorationwell 2010/11ALBANIACarbonate reefJONI-5APULIANPlatformPapua New Guinea(PNG)Capricorn 12.73%■Pandora gas fieldPAPUANEWGUINEA■ 3D seismic (2008/9)■ + 2 wells 1988/1992■ ~ 1Tcf+ under reviewPRL-1Carbonate reefPandoragas field09S0053GH00Discovering hidden value through entrepreneurial exploration42


REST OF GROUP - Iraq Second Bid Round■43 companies qualified for 2 nd Round■ 14 green field projects targeting ~40billion bbls + 17 Tcf of reserves■Iraqi Government presenting to 2 nd roundqualifiers in Istanbul today (Aug 25, 2009)■ Data packages for review Q3 2009■ Bid submissions Q4 2009■Presentation of offers, evaluation of bidsand awards 201009S0053GH00 Discovering hidden value through entrepreneurial exploration43


FINANCE - Cashflow$54m$158mPLCplacing$26mExpenditure on CapexCASH IN $238mFX Movement $35mCASH OUT ($540m)Decrease in Net Cash$267mExploration/ Appraisal$31mOther$2mExpenditureOnCapexDevelopment/ Producing$428m($12m)($461m)($67m)09S0053GH00 Discovering hidden value through entrepreneurial exploration44


PRODUCTIONboepd H1 2009 H1 2008Gross field production 68,941 80,873Entitlement 11,573 13,88615,0002009 Production (entitlement basis)11,573Prices realised H1 2009 H1 2008Oil per bbl ($) 51.89 114.73Gas per mcf ($) 3.38 3.74Per boe ($) 38.68 71.192009 forecast entitlement basis (boepd)Sangu 2,000 - 2,50010,0005,000Oil58%8,85346%CB/OS-2(4,033)Ravva 4,500 - 5,000CB/OS-2 3,500 - 4,00010,000 - 11,500boepd0GasLiquids42%54%Ravva(4,820)2,720SanguGas@ $65 oil price (real); revised from $75 per boe in 2008Group India Bangladesh09S0053GH00 Discovering hidden value through entrepreneurial exploration45


REVENUE AND GROSS PROFIT■Production costs $7.76 (2008: $14.09) per boe(excluding stock movements)■ Workover and infill well expenditure in H1 2008■ Fixed cost base over lower productionin Ravva, CB/OS-2 and Sangu200$180m(revenue)$36m■DD&A rate $10.90 (2008: $11.58) per bbl■Minor reserve revisions in Sangu and CB/OS-2150$6m$29m■ Unsuccessful exploration $24m100$81m(revenue)■■Review of general (non well specific) expenditurein RajasthanExploration activity in India*Production costs*Gross profit* Excludes the exceptional Ravva provisionUnsuccessful exploration costsDepletion and decommissioning charge09S0053GH00 Discovering hidden value through entrepreneurial exploration46$ million500$109mH1 2008 H1 2009*$16m$24m$23m$18m


CAIRN INDIA BALANCE SHEET - CAPITAL EXPENDITURE■Cairn India work programme capex fundedfrom:■$210m net cash on balance sheet(net of $850m debt drawn)1,000800~$920m1%■Revolving $850m credit facility(US LIBOR based)$850m currently drawn,first repayment June 2010600~$417m93%4001%2009 Development and Exploration Forecast20095%RajasthanDevelopment93%Other India7%0H1 2009Development / ProducingOther4%6%2009 GuidanceExploration / Appraisal09S0053GH00 Discovering hidden value through entrepreneurial exploration47


PLC / CAPRICORN BALANCE SHEET - CAPITAL EXPENDITURE80■ Cash on balance sheet $416m■ March 2009 placing $161m60~$65m4%402009 Exploration ForecastOther6%20~$12m4%96%Greenland60%South Asia17%Mediterranean17%0H1 200996%2009 GuidanceExploration / AppraisalOther09S0053GH00 Discovering hidden value through entrepreneurial exploration48


CLEAN NET INCOMEH1 2009*$mH1 2008$mPost Tax (Loss) / Profit – as reported (20) 376Add back non-recurring (income)/expenditureForeign currency exchange loss 26 15Exceptional gain on deemed disposal of subsidiaries - (359)Impairment of oil and gas assets - 19Unsuccessful exploration costs 24 6Clean Net Income 30 57* Excludes the exceptional Ravva provision09S0053GH00 Discovering hidden value through entrepreneurial exploration49


INCOME STATEMENTProduction (boepd)Average price ($/boe)H1 2009 H1 2008Revenue 17.1 180.4Production costs (16.3) (35.6)Includes exceptionalRavva provisionUnsuccessful exploration costs (24.0) (6.3)Depletion and decommissioning charge (22.8) (29.3)Cost of sales (63.1) (71.2)Gross (loss) / profit (46.0) 109.2Other operating income 6.4 5.8Administrative expenses (37.3) (52.0)Impairment / sale of oil and gas assets (0.5) (19.5)Reversal of impairment of oil and gas assets - 0.7Operating (loss) / profit (77.4) 44.2Includes intereston principle ofRavva provisionExceptional gain on deemed disposal of subsidiaries - 358.7Foreign currency exchange loss (26.4) (14.6)Other finance (expense) / income (11.8) 18.7(Loss) / profit before taxation (115.6) 407.0Taxation on (loss) / profit 40.6 (31.7)Includes taxcredit associatedwith Ravva provision(Loss) / profit for the period (75.0) 375.3Earnings per ordinary share – basic (cents) (45.54) 279.08Earnings per ordinary share – diluted (cents) (45.54) 278.31Year end exchange rate $ / £ 1.65 1.9911,57338.68$’m13,88671.19$’m09S0053GH00 Discovering hidden value through entrepreneurial exploration50


BALANCE SHEETH1 2009 H1 2008Oil and gas exploration / appraisal assets anddevelopment/producing assets2,062.2 1,419.5Other non-current assetsExploration $549.2mDevelopment $1,513.0m18.3 27.8Total non-current assets 2,080.5 1,447.3$’m$’mCash and deposits 1,480.6 1,291.6Net other current (liabilities) / assets (63.4) 35.4Deferred tax liabilities (209.2) (226.8)Loans and borrowings (non-current) (850.0) (115.0)Provisions (non current) (30.2) (44.7)Net assets 2,408.3 2,381.809S0053GH00 Discovering hidden value through entrepreneurial exploration51


CASHFLOW STATEMENTH1 2009 H1 2008$’m$’mNet cash (used in) / from operating activities (24.8) 104.9Oil and gas capital expenditure (459.4) (345.1)Other capital expenditure (1.9) (3.0)Interest received 26.2 27.9Cash outflow from investing activities (excluding deposits) (567.9) (375.6)Proceeds fromCairn Energy PLCplacementProceeds from deemed disposal of subsidiaries less costs - 636.8Arrangement and facility fees - (7.3)Proceeds from placing of shares 157.7 -Proceeds from issue of shares 0.2 7.7Proceeds from / (repayments of) borrowings (less finance lease obligations) 348.6 38.8Includes $350mCIL loan drawdownCash inflow from financing activities 506.5 676.0Cash (outflow) / inflow after financing (86.2) 405.3Opening cash and cash equivalents at beginning of year (including deposits) 1,113.0 872.3Exchange gains / (losses) (including deposits) 35.4 (70.0)Closing cash and cash equivalents (including deposits) 1,062.2 1,207.6Borrowings (850.0) (115.0)Closing cash and cash equivalents (including borrowings) (630.6) 1,176.609S0053GH00 Discovering hidden value through entrepreneurial exploration52


H1 2009 CAPITAL EXPENDITURE BY TYPE OF SPENDTOTAL 2009 CAPEX $429m (based on additions to fixed assets)Development / Producing$397m92%Exploration / Appraisal$30m7%Other$2m1%09S0053GH00 Discovering hidden value through entrepreneurial exploration53


H1 2009 CAPITAL EXPENDITURE BY BUSINESSTOTAL 2009 CAPEX $429m (based on additions to fixed assets)Cairn India Limited Group$417m97%Capricorn Oil Limited Group$12m3%09S0053GH00 Discovering hidden value through entrepreneurial exploration54