Will write more tomorrow but worth saying a few words this morning, albeit from a platform at Victoria station!
CNE has increased Senegal numbers but remains in the ultra conservative camp and is still lower than both Woodside and Far. 2C goes to 473mmbls with STOIIP of 2.7bn bbls with further upside of another 500m bible in third phase of drilling. Of more interest is the reduction in break even cost down from $40 to $35. NPV also revised up since cap markets day and 2C resources are guiding to a potential production rate of 120,000 b/d.
With Catcher and Kraken on track for next year and cash of $414m Cairn probably doesn’t need to raise any money but don’t rule it out, India position still a shambles but RBL has $260m undrawn, a bit of an equity top up at 2 quid a share might be just too tempting and advisors are hardly likely to demure…….
Cairn is a key stock in the bucket list as is Far which stands to gain even more from the world class discovery in Senegal, watch this space.