H1 2021 Strategic and Operational highlights

• Near term India resolution will enable further shareholder returns and acceleration of strategy: up to US$700m to be returned to shareholders via special dividend and buyback, subject to approval, with remainder retained to further enhance the producing asset base
• Securing long-term sustainable production, significant exploration potential and supporting cashflow growth: Egypt acquisition advancing to completion with transition planning underway
• Effective operational delivery: further oil find in Block 10 offshore Mexico
• Energy Transition: Net Zero roadmap developed with key senior appointments to deliver Cairn’s energy transition strategy
• Balance sheet strength and financial flexibility: Group cash at 30 June 2021 US$341m and no debt drawn following special dividend in January 2021 of US$257m
• Proposed divestment of UK North Sea producing assets: progressing towards Q4 2021 completion
• Cash outflows on capital expenditure of US$25m during first half of 2021

2021 Outlook

• Proposed capital return of up to US$700m following India resolution
• Egypt completion expected Q3 2021
• UK North Sea disposal expected Q4 2021
• Full year forecast net capital expenditure US$125m*; Exploration & Appraisal US$85m, Development & Production US$40m
• Expect to end 2021 net cash positive excluding India proceeds

*Includes US$20m for Kraken and Catcher which is refundable on sale completion

Simon Thomson, Chief Executive, Cairn Energy PLC said:
“Our significant acquisition in Egypt, which we expect to complete shortly, adds material gas-weighted production, low-cost, near-term growth and attractive exploration potential, in a region with strong demand trends. We intend to use our differentiated financial flexibility to add further scale to our production base and look forward to the next phase of strategic delivery.

Progress in resolving our Indian tax issue and active portfolio management leave Cairn well-positioned to deliver growth from a sustainable business, focused on generating further value and returns for shareholders.”