LONDON, March 31 - Oil explorer Cairn Energy said on Tuesday it remained on track to produce the first oil from its Rajasthan development in India in the second half of this year and forecast growth across its business.
Cairn said the planned ultimate production capacity in Rajasthan had risen in the last 12 months and revenues from the development would be used to fund further development work in the area and pay off debt.
The group said planning for an exploratory drilling campaign in its other main area of focus, Greenland, was already under way.
"The group intends to continue to target material growth across its business," Cairn said in its full-year results statement.
"The next two years promise to be an exciting time for Cairn. With a marked increase in group production and cash flow, we will continue to evaluate the strategic options for further creation of shareholder value."
Annual net profit was $367 million, including a $356 million exceptional gain on 4 percent placement of shares in Cairn India Limited (CIL), against a restated figure of $1.55 billion in 2007 which included a $1.5 billion one-off gain on its IPO of CIL.
The discovery of oil in Rajasthan in 2004 transformed Edinburgh-based Cairn Energy, lifting it from obscurity into the FTSE 100 index of the UK's largest companies.
Cairn comprises two separate business arms, including Cairn India -- which has interests in India and Sri Lanka, is listed on the Bombay Stock Exchange and is majority owned by Cairn -- and Capricorn Energy, an exploration-focused unlisted subsidiary with assets in Bangladesh, Nepal, northern India, Greenland, Tunisia, the UK and elsewhere.
Cairn said the planned ultimate production capacity in Rajasthan had risen in the last 12 months and revenues from the development would be used to fund further development work in the area and pay off debt.
The group said planning for an exploratory drilling campaign in its other main area of focus, Greenland, was already under way.
"The group intends to continue to target material growth across its business," Cairn said in its full-year results statement.
"The next two years promise to be an exciting time for Cairn. With a marked increase in group production and cash flow, we will continue to evaluate the strategic options for further creation of shareholder value."
Annual net profit was $367 million, including a $356 million exceptional gain on 4 percent placement of shares in Cairn India Limited (CIL), against a restated figure of $1.55 billion in 2007 which included a $1.5 billion one-off gain on its IPO of CIL.
The discovery of oil in Rajasthan in 2004 transformed Edinburgh-based Cairn Energy, lifting it from obscurity into the FTSE 100 index of the UK's largest companies.
Cairn comprises two separate business arms, including Cairn India -- which has interests in India and Sri Lanka, is listed on the Bombay Stock Exchange and is majority owned by Cairn -- and Capricorn Energy, an exploration-focused unlisted subsidiary with assets in Bangladesh, Nepal, northern India, Greenland, Tunisia, the UK and elsewhere.
