# Cairn Energy Sells Capricorn Norge AS for US$100 million to Solveig Gas Norway AS

- Link: https://www.directorstalkinterviews.com/cairn-energy-sells-capricorn-norge-as-for-us100-million-to-solveig-gas-norway-as/412799151
- Published: 2019-11-27T07:24:54+00:00
- Author: Giles Arbor

**Cairn Energy** (LON: CNE) has announced that it has entered into an agreement 
to dispose of the entire share capital of Capricorn Norge AS, the company’s wholly
owned subsidiary in Norway.

With effect from 1 January 2020, Solveig Gas Norway AS shall acquire all of the 
shares in Capricorn Norge AS by paying US$100 million (m) plus customary working
capital adjustments on completion (including an adjustment for the tax receivable
related to historical exploration activity).

Following this transaction, Cairn will have disposed of all of its assets in Norway
and will reduce its committed exploration and development capital expenditure by
~US$100m.

Cairn will use the proceeds of the transaction to fund its ongoing business.

> **Simon Thomson, Cairn Energy Chief Executive, said:**
> “This is a further attractive transaction for Cairn shareholders in line with 
> our consistent strategy to realise value and redeploy capital within our portfolio.
> We continue to have a material business in the UK North Sea where production performance
> of the Kraken and Catcher assets remains strong.
> We wish all of the team in Stavanger every success in the future.”

The transaction is expected to complete in early 2020 and remains subject to written
consent by the Norwegian Ministry of Petroleum and Energy, partner and third-party
approvals.

The gross asset value of the interests being transferred (as per Cairn’s Half-Year
Report issued on 10 September 2019) was US$207.4m, the net asset value was US$80.1m.
Capricorn Norge AS made a loss of US$6.5m for the period ending 30 June 2019.

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