Production
Production for Q1 2008 (boepd)
Ravva: 6,900
CB/OS-2: 4,595
Sangu: 2,982
Total: 14,477
Average price realised $/boe
Ravva: $84.12
CB/OS-2: $56.50
Sangu: $17.54
Total: $61.85
2007 production, on an entitlement interest basis, decreased by 19% to 19,809 barrels of oil equivalent per day (boepd) (2006: 24,523 boepd). This is primarily due to reduced field production at both Sangu and CB/OS-2.
The Group’s production continues to be predominantly gas (circa 63% on an entitlement basis). This production mix, together with price caps in the gas contracts, results in an average price realised by the Group for the year of $39.70 per boe (2006: $31.84 per boe). The increase is due primarily to the higher oil price environment in 2007.
The Group's average entitlement production for 2006 was 24,523 boepd net to Cairn compared to 28,240 boepd in 2005.
Reserves
On a direct working interest basis, reserves as at 31 December 2006 totalled 230.5 mmboe (2005: 275.7 mmboe), comprising 216.0 mmboe in India and 14.5 mmboe in Bangladesh.
India
FDPs for the Mangala, Aishwariya, Saraswati and Raageshwari fields have been approved by the GoI and the associated net entitlement 2P reserves until 2020 for Mangala, Saraswati and Raageshwari were booked in 2005. The current proposed development sequence for the Rajasthan northern fields is Mangala, Bhagyam and Aishwariya. The timing of the Aishwariya investment is dependent on the timing of the Bhagyam development, so a decision on the booking of the Aishwariya reserves will be deferred until the Bhagyam FDP and associated expenditure have been approved. It is planned to submit FDPs for Bhagyam and Shakti to the GoI in Q2 2007.
The downward revision to India reserves of 17.5 mmboe in 2006 is mainly as a result of the change in the Group's oil price assumption, which affects the Group's entitlement interest.
Bangladesh Reserves
Sangu gross proven and probable (2P) reserves have been reduced by a total of 213 bscf. Of this, 69 bscf is attributable to poorer than predicted production performance from the field after the infill drilling programme in 2005, with another 56 bscf being attributable to a decision to reclassify the reserves associated with Sangu gas compression to the contingent resources category. The remaining reduction of 88 bscf is associated with the reclassification from the probable (2P) to the possible (3P) reserves category.
The impact of these adjustments is to reduce current estimated Sangu gross 2P booked reserves to 116 bscf (10.3 mmboe on a net entitlement basis), which represents approximately 5% of the total estimated currently booked Group reserves for 2006.