Annual Report 2007 in PDF - Cairn Energy PLC
Annual Report 2007 in PDF - Cairn Energy PLC
Annual Report 2007 in PDF - Cairn Energy PLC
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NOTES TO THE ACCOUNTS<br />
CONTINUED<br />
18. Investments<br />
Subsidiary<br />
undertak<strong>in</strong>gs Total<br />
Company $’000 $’000<br />
Cost and net book value<br />
At 1 January 2006 24,829 24,829<br />
Exchange differences aris<strong>in</strong>g 33,564 33,564<br />
Additions 615,629 615,629<br />
Disposals (165,966) (165,966)<br />
––––––––––– –––––––––––<br />
At 1 January <strong>2007</strong> 508,056 508,056<br />
Exchange differences aris<strong>in</strong>g 1,461 1,461<br />
Additions 273,903 273,903<br />
Disposals (128,869) (128,869)<br />
––––––––––– –––––––––––<br />
At 31 December <strong>2007</strong> 654,551 654,551<br />
––––––––––– –––––––––––<br />
Dur<strong>in</strong>g 2006, the Company acquired various <strong>in</strong>vestments <strong>in</strong> subsidiaries from <strong>Cairn</strong> <strong>Energy</strong> Bangladesh Limited as settlement of<br />
a capital reduction by that company. Two further subsidiaries, <strong>Cairn</strong> Uk Hold<strong>in</strong>gs Limited and Capricorn (orig<strong>in</strong>ally <strong>in</strong>corporated<br />
as <strong>Cairn</strong> Resources Limited) were <strong>in</strong>corporated dur<strong>in</strong>g 2006, and the <strong>in</strong>vestments transferred to these companies through share<br />
for share exchanges. In addition, <strong>in</strong>ter-company loan balances due to <strong>Cairn</strong> <strong>Energy</strong> <strong>PLC</strong> from both <strong>Cairn</strong> Uk Hold<strong>in</strong>gs Limited<br />
and Capricorn were settled by an equity issue from the subsidiaries.<br />
Disposals <strong>in</strong> 2006 represent the elim<strong>in</strong>ation of the Company’s <strong>in</strong>vestment <strong>in</strong> <strong>Cairn</strong> <strong>Energy</strong> Bangladesh Limited on receipt of a<br />
dividend <strong>in</strong> specie follow<strong>in</strong>g a capital reduction <strong>in</strong> that company.<br />
Included <strong>in</strong> the total consideration for additions <strong>in</strong> 2006 of $615.6m is $63.6m directly settled by means of cash and cash<br />
equivalents.<br />
Additions <strong>in</strong> <strong>2007</strong> represent further <strong>in</strong>vestments <strong>in</strong> Capricorn. Included <strong>in</strong> the total consideration of $273.9m is $233.9m directly<br />
settled by means of cash and cash equivalents.<br />
Disposals dur<strong>in</strong>g <strong>2007</strong> represent a repurchase of share capital by <strong>Cairn</strong> Uk Hold<strong>in</strong>gs Limited. This was settled <strong>in</strong> full by offsett<strong>in</strong>g<br />
an <strong>in</strong>ter-company loan balance.<br />
Further details on these transactions are conta<strong>in</strong>ed <strong>in</strong> Note 36.<br />
108 CAIRN ENERGY <strong>PLC</strong> ANNUAL REPORT <strong>2007</strong>