Edinburgh-based international oil and gas company Cairn Energy said on Tuesday it has completed the sale of its interests in the Catcher and Kraken Fields in the North Sea to Waldorf Production Limited.
“The firm consideration payable to Cairn is US$455 million, to be adjusted for working capital and interim period cashflows from the economic date of 1 January 2020,” said Cairn.
“Additional, uncapped contingent consideration will be payable to Cairn 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 added: “Consideration at completion has been adjusted for the US$362m of interim period cashflow from the effective date, which is retained by Cairn, with cash received on completion of US$53m.
“The retained interim period cash to last balance sheet date of 30 June was US$272m as announced at the interim results, and retained interim period cash from 30 June to 1 Nov was a further US$90m.”