Cairn Oil & Gas, part of mining multinational Vedanta Ltd., announced a 19 percent year-on-year increase in its reserves and resources (R&R) portfolio, reaching 1.4 billion barrels of oil equivalent (Bboe).
Cairn's total reserve plus resource additions outstripped production, leading to a resource replacement ratio (RRR) of 533 percent, a fivefold increase over the RRR of 108 percent in the previous fiscal year, the private oil and gas explorer said in a press release.
It recorded a substantial increase in its gross contingent (2C, or unrisked estimate, as opposed to proven) resources to 1.126 Bboe, a year-on-year growth of 33 percent, the company said. Cairn said this signifies a larger pool of potentially recoverable oil and gas, fuelling future production and cash flow generation for the company, and increased domestic production for Aatmanirbhar Bharat.
“By focusing on exploration success and resource conversion, we are building a robust reserve base for continued growth and shareholder value,” said Steve Moore, deputy CEO, Cairn Oil & Gas.
“Our focus on responsible resource management, future-proofing our operations and ensuring long-term value creation is at the heart of our strategy to deliver on our goal of contributing to 50 percent of India’s oil and gas production,” he added.
Cairn has also announced a strategic resource management plan which the company said prioritises long-term sustainability and value creation for investors. The new plan will focus on maximising production from existing reserves to ensure consistent revenue streams, while exploration activities will lay the groundwork for future growth, it added.
Cairn said there would be a renewed emphasis on new discoveries in promising basins that would expand the company’s resource base and position it for long-term production.
Cairn has a portfolio of 62 blocks covering an acreage of more than 60,000 sq km in India. The company plans to drill up to 20 exploration wells by 2025 targeting approximately 500 MMboe gross unrisked prospective resources, said Cairn.
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