Cairn secures two rigs for drilling programme

27th Jan 2011 08:28

Oil producer Cairn Energy said average daily production in 2010 was 70% higher than 2009's levels. Gross daily production last year was 130,952 barrels of oil equivalent per day (boepd), of which Cairn's entitlement interest was 65,292 boepd.In 2010 group production sold was 63,359 boepd on an entitlement basis, realising an average price per barrel of oil equivalent of US $69.18, up from $50.02 in 2009.In the fourth quarter production hit 176,815 boepd, of which Cairn's entitlement was 100,249 boepd. Net cash balance for the group at the end of 2010 stood at $404m, while for Cairn India had net cash of $217m, comprising $891m cash and $674m of debt. The Edinburgh-based company, which has made a big commitment to exploring the waters off the coast of Greenland after agreeing to sell a 51% stake in Cairn India to Vedanta in August of last year, said costs to Cairn for the 2010 Greenland drilling programme were in the region of $400m, in line with previous guidance.The Vedanta transaction has yet to complete, so the company has arranged a stand-by secured revolving debt facility of $900m to provide funding for the drilling programme, as well as for general corporate purposes."Cairn continues to work with the Government of India in a consensual manner to secure the necessary consents and approvals for completion of the Vedanta transaction," said Sir Bill Gammell, Cairn's chief executive."In Greenland the results from our 2010 drilling programme were encouraging and the goal of our future exploration efforts will be to establish reservoir and potential commercial resources," Gammell added.The company has secured two "state of the art" dynamically positioned drilling vessels for its planned 2011 dual rig exploration programme offshore Greenland.