ST. HELIER, JERSEY 8TH MARCH 2017
FlowStream Commodities Ltd (“FlowStream”) is pleased to announce that it has reached agreement with Cairn Energy PLC (“Cairn”) on the terms of a two tranche stream for an aggregate amount of US$ 200 million. The stream is on Cairn’s interests in the Kraken and Catcher fields on the United Kingdom Continental Shelf. The first tranche of the stream, which is for US$75 million and is only on Cairn’s interest in the Kraken field, will be fully drawn at completion. The second tranche can be called upon at any point in a two year period following completion, subject to certain approvals, including the approval of Cairn’s banks.
Key attractions of the stream with Cairn include:
Kraken Oil Field Overview
The Kraken oil field is a key near term producing development project within Cairn’s portfolio. The field is located in UKCS Block 9/2b within the P1077 licence, approximately 350 km north east of Aberdeen in 110m of water.
Key highlights of the Kraken oil field include:
Catcher Oil Field Overview
The Catcher oil field, which is currently under development, is another key near term producing development project for Cairn. The field is located in UKCS Block 28/9a in Licence P1430, approximately 150 km east of Aberdeen in 90m of water.
Key highlights of the Catcher oil field include:
Jan Laubjerg, Chief Executive Officer of FlowStream, commented:
“We are delighted to have agreed a US$ 200 million stream with Cairn on their Kraken and Catcher fields interests. With net cash of circa US$ 335 million as of 31 December 2016 and an undrawn US$ 575 million reserves based loan, Cairn is one of the best capitalised European based independents, with a wide range of alternative sources of capital available to it. In light of this, we are particularly delighted that Cairn has recognised the risk management and balance sheet benefits of diversifying its sources of funding to now also include streaming. Having carried out comprehensive due diligence on the Kraken and Catcher fields and their respective developments extensively for some time now, we understand the projects and are confident in the respective joint ventures’ abilities to deliver these two landmark development projects on the UK Continental Shelf.”
Completion of the transaction is subject to OGA approval.
|FlowStream Commodities||Jan Laubjerg
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Notes to Editors
FlowStream is a streaming and royalty company focused on the oil & gas sector. FlowStream provides upfront cash for oil & gas companies and in return receives an oil and/or gas stream on a specific licence, lease or field. FlowStream also acquires existing streams and royalties in the oil & gas sector. FlowStream, with the support of its shareholders, who include KKR, Global Gate Capital and Anglo Pacific Group, intends to grow and diversify its portfolio of streams and royalties by sourcing primarily development and producing assets on a worldwide basis. For more information, please visit www.flowstreamcommodities.com
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. Cairn’s business operations are now focused on frontier exploration acreage in North West Europe, North West Africa, North Atlantic and Mediterranean, underpinned by interests in development assets in the North Sea. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London, Norway and Senegal.