Cairn India issues Interim Dividend declaration and Rajasthan exploration update

Cairn India Limited (CIL), the fastest growing energy company* in the world, declares interim dividend and announces three new oil discoveries in Rajasthan block.

Interim Dividend Declaration:

The Board of Directors at its meeting held today has declared interim cash dividend of ₹ 5 per Equity share of  ₹  10 face value. The dividend is proposed to be paid on or before 13th  October, 2014 to shareholders on record as on 23rd September, 2014. This will entail an outflow of ₹ 1,097 crore including the dividend distribution tax of ₹ 159 crore.

Update on Rajasthan Exploration:

Three new oil discoveries have been made in Block RJ-ON-90/1, taking the total number of discoveries in the block to date to 36. This further exemplifies the capabilities of Cairn's exploration team operating in this prolific onshore block.

Exploration well DP-1 has encountered 70m gross oil bearing interval in the Barmer Hill formation.  The well has  been fracced and tested, flowing oil @ 120 bopd. The DP structure is located 6 km NW of Mangala field and has an aerial extent of 21 km2. This is a significant discovery, in view of its proximity to the  Mangala oil field and fast track appraisal is planned to facilitate rapid commercialization of this discovery.

Exploration well Saraswati SW-1 has been tested in a Mesozoic sand interval and flowed oil @ 248 bopd. Well Aishwariya-46 flowed oil @ 182 bopd in Dharvi Dungar formation, making it the 36th Discovery in RJ-ON-90/1. This well represents the first Dharvi Dungar oil discovery in the northern part of Barmer basin.

Mr. Sudhir Mathur, Interim CEO, Cairn India said “The objective of our dividend policy is to continuously enhance value to our shareholders. In line with this policy, we are delighted to announce an interim dividend of INR 5 per share.”