(Sharecast News) – Oil and gas exploration and development Cairn Energy said on Wednesday that full-year oil production from its Catcher and Kraken fields was in line with guidance.
Combined 2020 oil production net to Cairn from the Catcher and Kraken fields averaged just over 21,000 barrels of oil per day, while 2021 oil production was estimated to be between 16,000 and 19,000 barrels per day.
The FTSE 250-listed firm highlighted that both fields were expected to enter into their natural decline phase during 2021, making its focus arresting the underlying decline rate and potentially extending field life by maximising FPSO performance efficiency, process optimisation and maturing further drilling opportunities.
Oil and gas sales revenue was $324.0m for the year, at an average realised price of $42.23 per barrel of oil equivalent, before hedging gains of $7.27 per barrel.
Chief executive Simon Thomson said: “Cairn enters 2021 with balance sheet strength and financial flexibility. The sale of the company’s interests in Senegal 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.”
As of 0905 GMT, Cairn shares were up 0.053% at 190.20p.
