Cairn Energy agrees farm-out deal with Dyas for Catcher licence

25th Sep 2014 07:49

Oil and gas group Cairn Energy has entered into a farm-out agreement for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea.The agreement with sector peer Dyas is in return for a 10% stake in five licences, including Catcher, on the UK Continental Shelf that will fund up to $182m-worth of Cairn's exploration and development costs.The deal will reduce the FTSE 250 company's capital expenditure to the end of 2017 in the Catcher area by approximately $380m to $200m.Cairn will retain a 20% interest in the Catcher licence and a reduced interest in the four other adjacent licences.Simon Thomson, the chief executive of the group, said: "Cairn remains focused on delivering value for shareholders from disciplined capital allocation and portfolio management across a balanced asset base."This value enhancing transaction provides us with significant additional operational flexibility to deliver the group's strategy."