(Alliance News) - Cairn Energy PLC on Wednesday reported its 2020 net production from its Catcher and Kraken oil fields averaged just over 21,000 barrels of oil per day, in line with internal guidance.
The Edinburgh-based oil and gas exploration and development company said its 2020 oil and gas sales revenue was USD324 million at an average realised price of USD42.23 per barrel of oil equivalent. For comparison, oil and gas revenue for 2019 was USD504 million, at an average price of USD64.52 a barrel.
Cairn said its North Sea assets performed above expectations in the first half of 2020, with net production previously reporting 22,400 barrels of oil per day. Production in 2019 from the Catcher and Kraken fields averaged 23,000 barrels of oil per day.
Kraken continued to deliver strong performance throughout the rest of the year, the company said, however production from Catcher was constrained during the fourth quarter due to the produced water plant being offline. Consequently, Cairn's full year net production was just over 21,000 barrels of oil per day and crude sales from both fields averaged close to the dated Brent benchmark pricing or better during the period, it added.
Cairn said it estimates its 2021 net oil production to be between 16,000 and 19,000 barrels of oil per day due to both fields entering their natural decline phase this year. The company said the estimation is subject to ongoing discussions regarding the timing and duration of planned shutdowns, and understanding the impact of the Catcher ongoing gas injection trials.
"Cairn enters 2021 with balance sheet strength and financial flexibility. The sale of the company's interests in Capricorn Senegal Ltd and return of capital to shareholders demonstrates continued strategic delivery and differentiation. The company is well-positioned to be opportunistic in the current market as it seeks to diversify and grow its production base," said Chief Executive Simon Thomson.
"A significant milestone was achieved in December with a unanimous award in favour of Cairn in its arbitration with the government of India under the UK-India Bilateral Trade Investment Treaty. We have engaged with the government of India regarding adherence to the tribunal's ruling and are taking all necessary steps to protect our rights to the award," Thomson added.
Shares in Cairn Energy were down 0.4% at 189.40 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Capricorn Energy PLC (CNE)