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Cairn Energy acquires stakes in two Irish oil and gas blocks

08 May 2013 Evaluate

Cairn Energy plc, the former parent company of Cairn India, has bought stakes in two Irish oil and gas blocks in a cost-and-carry deal. Under the terms of the deal, Capricorn Ireland, a subsidiary of Cairn Energy, acquired the rights to obtain a 38% in Porcupine Basin pair Frontier Exploration Licence and also six adjacent licencing option blocks. Meanwhile, Chrysaor will retain up to a 36% interest in partnership, though the farm-out agreement has yet to be approved by government.

The two licences - FEL 2/04, which includes the Spanish Point and Burren discoveries, and FEL 4/08 - together cover an area of 1,242 square kilometres and are currently operated by Chrysaor and SOSINA Exploration. In return, Cairn Energy will pay $4.1 million in pro-rated back costs and carry 63.33% of future exploration and appraisal costs for up to two wells, subject to a cap.

Peers
Company Name CMP
ONGC 279.25
Oil India 454.40
Jindal Drilling&Inds 535.85
Deep Industries 457.70
Asian Energy Service 297.85
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