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Cairn to spend up to $300m a year on exploration

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Oil and gas firm Cairn Energy plans to spend an average of $250 million (£158m) to $300m a year on exploration and appraisal work over the next five years.

The group also said today that it expects to invest between $1.5bn and $2bn on its development assets over the same period, partly funded through debt.

In a trading update ahead of its annual results, which are due to be published on 19 March, Edinburgh-based Cairn said it was sitting on a net cash balance of $1.6bn as of 31 December.

Chief executive Simon Thomson said: “Our balance sheet strength means we are funded for all planned exploration and development – whilst retaining the flexibility to consider further opportunities.

“Our North Sea properties Catcher and Kraken, now at late pre-development stage, will, when on stream, provide cash flows to sustain future exploration programmes.”


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