Cairn is pleased to announce the completion of the farm out agreement to Dyas UK Limited for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea for a carry of Cairn’s exploration and development costs up to a cap of US$182 million (m) effective 1 January 2014. The Catcher development is on track for first oil from 2017.

As a result of the transaction, Cairn has reduced its forward capital expenditure to the end of 2017 by ~US$380m. Cairn retains a 20% working interest in the Catcher licence.

Cairn, through its wholly owned subsidiary Capricorn Norge AS, has also been awarded the following non-operated interests in five licences in the Norwegian 2014 APA Licensing Round. These licences do not carry firm well commitments and are in locations adjacent to current areas of interest in Norway.

About Cairn

Cairn is one of Europe's leading independent oil and gas exploration and development companies. Cairn has its headquarters in Edinburgh (Scotland) and operational offices in London (UK), Nuuk (Greenland), Stavanger (Norway) and Madrid (Spain).