MUMBAI, India, September 17, 2014 /PRNewswire/ --
The following release was issued today by Sesa Sterlite Limited's subsidiary Cairn India Limited.
Cairn India Limited
Interim Dividend Declaration and Rajasthan Exploration Update
Cairn India Limited (CIL), the fastest growing energy company* in the world, today declares interim dividend and announces three new oil discoveries in Rajasthan block.
Interim Dividend Declaration
The Board of Directors at its meeting held today has declared interim cash dividend of INR 5 per Equity share of INR 10 face value. The dividend is proposed to be paid on or before 13th October, 2014 to shareholders on record as on 23rd September, 2014. This will entail an outflow of INR 1,097 crore including the dividend distribution tax of INR 159 crore.
Update on Rajasthan Exploration
Three new oil discoveries have been made in Block RJ-ON-90/1, taking the total number of discoveries in the block to date to 36. This further exemplifies the capabilities of Cairn's exploration team operating in this prolific onshore block.
Exploration well DP-1 has encountered 70m gross oil bearing interval in the Barmer Hill formation. The well has been fracced and tested, flowing oil @ 120 bopd. The DP structure is located 6 km NW of Mangala field and has an aerial extent of 21 km2. This is a significant discovery, in view of its proximity to the Mangala oil field and fast track appraisal is planned to facilitate rapid commercialization of this discovery.
Exploration well Saraswati SW-1 has been tested in a Mesozoic sand interval and flowed oil @ 248 bopd.
Well Aishwariya-46 flowed oil @ 182 bopd in Dharvi Dungar formation, making it the 36th Discovery in RJ-ON-90/1. This well represents the first Dharvi Dungar oil discovery in the northern part of Barmer basin.
Mr. Sudhir Mathur, Interim CEO, Cairn India said:
"The objective of our dividend policy is to continuously enhance value to our shareholders. In line with this policy, we are delighted to announce an interim dividend of INR 5 per share."
* Source: 2013 Platts Top 250 Global Energy Rankings
Cairn India Limited Fact Sheet
On 9 January, 2007, Cairn India Limited was listed on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn India is now part of the Vedanta Group, a globally diversified natural resources group.
Cairn India is headquartered in Gurgaon in the National Capital Region. The Company has operational offices in India including Andhra Pradesh, Gujarat, Rajasthan, Tamil Nadu and International offices in Colombo and London.
Cairn India is one of the largest independent oil and gas exploration and production companies in India. Together with its JV partners, Cairn India accounted for ~28% of India's domestic crude oil production in FY14. Average gross operated production was 217,869 boepd in Q1 FY15. The Company sells its oil and gas to major PSU and private buyers in India.
The Company has a world-class resource base, with interest in seven blocks in India, one in Sri Lanka and one in South Africa. Cairn India's resource base is located in four strategically focused areas namely one block in Rajasthan, two on the west coast of India, five on the east coast of India (including one in Sri Lanka) and one in South Africa.
The blocks are located in the Barmer Basin, Krishna-Godavari Basin, the Palar-Pennar Basin, the Cambay Basin, the Mumbai Offshore Basin, the Mannar Basin and Orange Basin.
Cairn India's focus on India has resulted in a significant number of oil and gas discoveries. Cairn India made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. To date, thirty six discoveries have been made in the Rajasthan block RJ-ON-90/1 and the exploration and appraisal drilling campaign is targeting over 3 billion barrels of gross oil in place resources.
In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a PSC signed on 15 May, 1995 comprising of three development areas. DA 1 (1,859 km2) includes discoveries namely Mangala, Aishwariya, Raageshwari and Saraswati, DA 2 (430 km2), includes the Bhagyam and Shakti fields and DA 3 (822 km2) comprising of the Kaameshwari West Development Area, is shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having exercised their back in right for 30%.
The total resource base supports a long term vision to produce 300,000 boepd, subject to exploration success, further development investments and regulatory approvals.
In Andhra Pradesh and Gujarat, Cairn India on behalf of its JV partners operates two processing plants, 11 platforms and more than 200 km of sub-sea pipelines with a production of over 34,000 boepd as of Q1 FY 15.
Block SL-2007-01-001 was awarded to Cairn Lanka in the bid round held in 2008. This offshore block is located in the Gulf of Mannar. The water depths range from 400 to 1,900 meter. The signing of the Petroleum Resources Agreement (PRA) to explore oil and natural gas in the Mannar Basin was undertaken in July 2008 in Colombo.
The farm-in agreement was signed with PetroSA on 16 August, 2012 in the 'Block-I' located in Orange basin, South Africa. The block covers an area of 19,898 sq km. The assignment of 60% interest and operatorship has been granted by the South African regulatory authorities.
India's gross imports of crude oil stood at 3.8* million bopd in 2013. India's domestic crude oil production for FY2013-14 was approximately 0.76** million bopd of which Cairn India operated assets (Ravva, CB/OS-2 and the RJ-ON-90/1) contributed ~28%.
For further information on Cairn India Limited, kindly visit http://www.cairnindia.com
*BP Statistical Review of World Energy 2014
**MoPNG March 2014 production statistics
Cairn India Limited and/or its subsidiaries Cairn India as appropriate Company Cairn India Limited Refers to Cairn Lanka (Pvt) Ltd, a wholly owned subsidiary of Cairn Lanka Cairn India PAT adjusted for DD&A, impact of forex fluctuation, MAT credit Cash EPS and deferred tax Cash Flow from Operations includes PAT (excluding other income and exceptional item) prior to non-cash expenses and exploration CFFO costs. Central Processing CPT Terminal CY Calendar Year Declaration of DoC Commerciality Exploration and E&P Production Earnings before Interest, Taxes, Depreciation and Amortisation includes forex gain/loss earned EBITDA as part of operations EPS Earnings Per Share FY Financial Year GBA Gas Balancing Agreement GoI Government of India GoSL Government of Sri Lanka The Company and its Group subsidiaries JV Joint Venture MC Management Committee Ministry of Petroleum MoPNG and Natural Gas New Exploration NELP Licensing Policy Oil and Natural Gas ONGC Corporation Limited OC Operating Committee Petroleum Resources PRA Agreement Petroleum Planning & PPAC Analysis Cell qoq Quarter on Quarter SL Sri Lanka Vedanta Resources plc Vedanta and/or its subsidiaries Group from time to time yoy Year on Year
2P Proven plus probable Proven plus probable and 3P possible Two dimensional/three 2D/3D/4D dimensional/ time lapse Barrel(s) of oil Boe equivalent Barrels of oil Boepd equivalent per day Bopd Barrels of oil per day Billion standard cubic Bscf feet of gas Trillion standard cubic Tcf feet of gas EOR Enhanced Oil Recovery FDP Field Development Plan MDT Modular Dynamic Tester million barrels of oil Mmboe equivalent million standard cubic Mmscfd feet of gas per day Mmt million metric tonne Petroleum Resources PRDS Development Secretariat PSU Public Sector Utilities Production Sharing PSC Contract
Lower permeability Barmer Hill reservoir which overlies Formation the Fatehgarh Secondary reservoirs in the Guda field and is the reservoir rock encountered in the Dharvi recent Kaameshwari West Dungar discoveries Name given to the primary reservoir rock of the Northern Rajasthan fields of Mangala, Aishwariya and Fatehgarh Bhagyam Located in the Gulf of Mannar, situated on the NE shallow continental Mannar Basin shelf of Sri Lanka Mangala, Bhagyam, Aishwariya, Raageshwari, MBARS Saraswati Youngest reservoirs encountered in the basin. The Thumbli is the primary reservoir for the Raageshwari Thumbli field
This material contains forward-looking statements regarding Cairn India and its affiliates, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward- looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are by their nature subject to significant risks and uncertainties; and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations 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 and use of technology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within this document represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India's joint venture partner.
About Sesa Sterlite Limited
Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's largest diversified natural resources companies. Our business primarily involves exploring, extracting and processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.
Sustainability is at the core of Sesa Sterlite's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behavior of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Sesa Sterlite Limited
(Formerly known as Sesa Goa Limited)
Vedanta, 75, Nehru Road,
Vile Parle (East), Mumbai - 400 099
Sesa Ghor, 20 EDC Complex,
Patto, Panaji (Goa) - 403 001
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SOURCE Sesa Sterlite Limited