Cairn Sells Interest In Catcher, Kraken Fields For US$455 million

Oil and gas company Cairn Energy has completed the sale of its interests in the Catcher and Kraken fields located off the UK for US$455 million.

Cairn initially proposed the sale of its interests in the UK Catcher and Kraken fields to Waldorf Production in March 2021. This enabled the company to sell its entire 20 percent interest in the Catcher field and 29.5 percent interest in the Kraken field.

The completion of the transaction was announced on the 3^rd November, following a vote on Cairn Energy’s general meeting held on the 28^th October. The resolution passed with 95.4 percent of shareholder votes in favour.

The company said that firm consideration payable to Cairn is US$455 million and that it will be adjusted for working capital and interim period cashflows from the economic date of the 1^st January 2020.

Waldorf Production will pay additional, uncapped contingent consideration when Brent exceeds US$52/bbl on average in any of the five years 2021 to 2025.

“Assuming production is in line with Cairn forecasts, this contingent consideration is expected to generate approximately a further US$100 million at US$60/bbl Brent prices, US$175 million at US$70/bbl Brent prices and US$240 million at US$80/bbl Brent prices,” Cairn stated.

Brent crude futures fell US$1.03, or 1.2 percent, to US$83.69 a barrel as of 7:30 AM GMT on the 3^rd November.

In an announcement on the 2^nd  November, Waldorf Production said: “The addition of the interests in Kraken and Catcher brings the average production from the Company’s assets up to circa 22,000 boe per day and increases 2P reserves to 52 million boe as of year-end 2020.”

Source: Rigzone