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Catcher & Kraken Stream (UK North Sea, Oil)

The Asset: Kraken

  • Operated by EnQuest (70.5%) with Cairn as JV partner (29.5%)
  • Expected by the operator to produce over 130 million barrels of oil
  • The operator is targeting a field plateau production rate of over 50 thousand barrels of oil per day
  • Field development plan based on a leased FPSO with 13 producers and 12 water injectors

The Asset: Catcher

  • Operated by Premier Oil (50%) with Cairn (20%), MOL (20%) and Dyas (10%)
  • Expected by Premier Oil to produce approximately 100 million barrels of oil equivalent
  • Targeted field plateau production rate of 50 thousand barrels of oil per day, utilising 14 producers and 8 water injectors
  • Field development plan utilizing a leased FPSO with gas to be exported by pipeline linked to North Sea
    gas infrastructure

The Counterparty (Cairn)

  • Cairn is one of Europe’s leading independent oil and gas exploration and development companies and is listed on the London Stock Exchange
  • Cairn has discovered and developed oil and gas reserves in a variety of locations around the world
  • US$1.4bn market capitalisation as of March 2017 when FlowStream entered into the stream
  • Cairn is one of the best capitalised independents with US$335m of net cash and a fully undrawn US$575m
  • RBL at the time of the transaction

The Deal

  • FlowStream entered into a stream agreement with Cairn in March 2017
  • Under the terms, either FlowStream or Cairn can exercise an option to provide up to US$125 million of cash in return for a percentage of Cairn’s production from the Catcher and Kraken fields

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