Dyas pulls out of Capricorn

Cairn Energy has agreed to acquire the 9.99% interest Dyas owns in Cairn’s exploration-focused subsidiary, Capricorn.

Offshore staff

EDINBURGH, UK-- Cairn Energy has agreed to acquire the 9.99% interest Dyas owns in Cairn’s exploration-focused subsidiary, Capricorn. On completion of the transaction, Cairn will be the outright owner of Capricorn.

The value of this transaction is US $95 million, to be transferred to Dyas in the form of 1.8 million shares in Cairn with the balance payable in cash. Cairn will also assign to Dyas a percentage of the interests held by Capricorn offshore Tunisia and Albania, subject to the relevant government approvals.

This arrangement will leave Dyas with 15% of the Louza Permit and 7.5% of the Nabeul Permit (both in Tunisia), and 15% of the Block Joni-5 concession off Albania. Cairn/Capricorn gained interests in these permits in 2007 following the acquisition of medOil and Plectrum Petroleum.

Dyas acquired its stake in Capricorn in September 2007 on the same day as these transfers went through. Capricorn has since picked up license interests in Greenland, where it has been performing a pre-exploration program of seismic and lead development. In October, Cairn farmed down a minority interest in its Greenland acreage to Petronas.

According to Cairn’s Chief Executive BillGammell: “Dyas were early strategic investors in Capricorn at a time when it was envisaged that Cademerge from the Cairn Group. Given the materiality of our exploration position in Greenland to the Group as a whole, there is no longer an intention to demerge Capricorn. Dyas have therefore agreed to exchange their holding in Capricorn for a holding in Cairn.”

12/2/2009

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