Cairn Energy has entered into a farm out agreement for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea. With effect from Jan. 1, Dyas UK Ltd. will acquire 10% in each of the following UK Continental Shelf licenses P1430, P2040, P2070, P2077, and P2086, by funding Cairn’s exploration and development costs in respect of the licenses up to a cap of $182 million.
Following this transaction, Cairn will retain a 20% interest in the Catcher license and a reduced interest in each of the remaining licenses as detailed below. As a result of this transaction, Cairn will reduce its capital expenditure to the end of 2017 in the Catcher area by $380 million (inclusive of the carry payment detailed above) to $200 million.
License P1430 (Catcher) received UK Department of Energy and Climate Change approval of its field development plan in June. Licenses P2040, P2070, P2077, and P2086 are adjacent licenses in the Greater Catcher area.