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Cairn Energy

An oil giant’s road from Rajasthan to ruin

 FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

Michael Harrison’s Outlook: An oil giant’s road from Rajasthan to ruin

“Shell, by contrast, has endured the most humiliating, torrid and damaging period in its 100-year history. It is hard to think of a more spectacular fall from grace or a more abject example of management failure.”: “The deeper it dug itself into this hole, the more Shell was forced to lie” 

Fortunes; Failure; Scramble

14 August 2004

It is a long way from the arid deserts of Rajasthan to the Shell Centre on London’s South Bank. But two events this week provide a link.

One was the announcement by Cairn Energy that it had made yet another significant oil discovery in a region of India hitherto better known for its sumptuous pink palaces and backpacking tourists. The other was the disclosure that Shell’s former head of exploration and production, Walter van de Vijver, is to receive a £2.5m pay-off after being sacked for his part in the company’s reserves scandal. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

India success makes Cairn a worthy hold

FROM OUR ARCHIVES…

Combined with an oil price higher than ever, Cairn looks to be sitting very pretty. Much to the embarrassment of Shell, of course, which sold the Rajasthan field to Cairn two years ago for just £4m.

18 May 2004

The oilfields of India are proving to be more like gold to Cairn Energy, which yesterday announced yet more success in its Rajasthan site.

The second stage of drilling following its original find has not only confirmed initial expectations but led to an upgrade in its estimated reserves. The lowest hope had been for 50 million barrels from the site; now it is for 100 million barrels.

Combined with an oil price higher than ever, Cairn looks to be sitting very pretty. Much to the embarrassment of Shell, of course, which sold the Rajasthan field to Cairn two years ago for just £4m.
read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

PTT Exploration Offers $1.7 Billion for Cove, Beating Shell

PTT Exploration offered 220 pence for each Cove share, 13 percent more than Shell’s proposal, according to a statement today. Cove surged 21 percent to 235 pence in London trading, indicating investors are betting on further bids.

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Sir Bill’s treatment at Cairn will make every board quake

The giant oil field sold for a song by Shell… it sold its 50% share to Cairn for $7.5 million, now worth billions…

James Ashton 24 Jan 2012

The momentum gained by the Government’s war on executive pay meant it was bound to claim some victims. The only surprise is that Sir Bill Gammell has become its first. As the chief executive of Cairn Energy, he was a stock market darling. The success he enjoyed after buying an unwanted Indian exploration site from Royal Dutch Shell has passed into oil industry folklore.

Cairn, which now has a market value of £4 billion, can thank the £4.5 million acquisition of an Indian exploration site for its good fortune. Sir Bill, a former Scottish rugby international, saw potential there after the big boys had given up trying. A similar spirit has given it the confidence to hunt for oil in far-flung corners of the world such as Greenland. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The black gold Shell sold for peanuts

From a Shell retiree

Hello John

You may want to have a look here:

http://www.cairnindia.com/IR/Pages/QuarterResult.

A few years ago Shell got rid of this acreage for peanuts because it was not worth having.

Cairn thought differently….

Extracts from related articles:

(1): Its site in Rajasthan, India, bought from Shell for next to nothing, has turned into a significant oil find. More recently, Cairn has negotiated a deal with India’s Oil & Natural Gas Corporation (ONGC) that allows it to participate in a joint venture to build a major refinery in Rajasthan. Given India’s growing power, this is likely to become a rather valuable asset. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Royal Dutch Shell, the Anglo-Dutch group, signs landmark deal with Gazprom

THE TIMES (UK): Need to Know

“Royal Dutch Shell, the Anglo-Dutch group, has signed a landmark deal with Gazprom, the Russian gas monopoly, to swap an approximately 25 per cent stake in the Shell-led Sakhalin-2 gas project for a half share in the Zapolyarnoye-Neocomian field, which has an estimated 400 billion cubic metres of gas and 400 million barrels of gas condensate.”

Friday 8 July 2005

Royal Dutch Shell, the Anglo-Dutch group, has signed a landmark deal with Gazprom, the Russian gas monopoly, to swap an approximately 25 per cent stake in the Shell-led Sakhalin-2 gas project for a half share in the Zapolyarnoye-Neocomian field, which has an estimated 400 billion cubic metres of gas and 400 million barrels of gas condensate.

Oil and Natural Gas, India’s state-run company, said that it was planning to build a 150,000-barrel-a-day refinery in conjunction with Cairn Energy, the Edinburgh group. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The great oil rush of 2005

THE TIMES: The great oil rush of 2005

Posted 26 May 2005

By Rhys Blakely, Times Online

Cairn Energy is moving one step closer to unlocking the riches it discovered under a plot of Indian desert bought at a knock-down price from the hapless Shell. If only the rest of the oil sector could put in such a slick performance.

The Scottish minnow turned FTSE 100 oil giant is likely to receive approval from the Indian government to develop its three key onshore fields in western Rajasthan, Platts, the commodities news service, reported this morning. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Cairn’s lucky strike in the oil lottery

The Times: Cairn’s lucky strike in the oil lottery

““Still, it (SHELL) must have some regrets about giving away a winning lottery ticket.”

Indian find is akin to being given a free ticket and winning the lottery, says the exploration company.

Report by Peter Koenig

Posted August 15, 2004

TEN DAYS ago, on the morning of August 6, Bill Gammell and Kevin Hart, chief executive and finance director of the Scottish oil-exploration group Cairn Energy, arrived at their Edinburgh headquarters distracted.

Gammell, 51, who, to his chagrin, is as well known for his childhood friendships with George W Bush and Tony Blair as for his accomplishments as an oilman, was thinking ahead to a week’s holiday in Fife.

Hart, 35, a refugee from a City job at Deutsche Morgan Grenfell, wasn’t even supposed to be at work — he was meant to be taking the day off. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Telegraph: Cairn oil bonanza nets chiefs £4m bonus

Daily Telegraph: Cairn oil bonanza nets chiefs £4m bonus

“Cairn’s finds in India are a source of continued embarrassment to Shell, which sold its 50pc share in the concession to Cairn for just $7.25m.”

By Christopher Hope, Business Correspondent (Filed: 16/08/2004)

Cairn Energy, the Scottish oil explorer, will take a charge of more than £4m at its half-year results in three weeks’ time to cover the cost of paying out long-term bonuses to its management.

Cairn has been one of the biggest risers on the stock market this year after discovering 1.85billion barrels of oil in northern India. Last week the shares jumped 13pc after Cairn found oil for the fourth time.

Kevin Hart, finance director, told analysts last week that the cost of paying directors’ bonuses under its long-term incentive plan, which is linked to Cairn’s share price, was likely to be £4.3m for the six months to June 30. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Sunday Express: All’s well with Cairn in the Indian desert

Sunday Express: All’s well with Cairn in the Indian desert

It was an act of stupidity… You don’t sell off your golden eggs like that. Shell’s loss is Cairn’s gain.”: “Oil minnow’s £4m field is worth billions”

Oil minnow’s £4m field is worth billions, writes Robin Pagnamenta

15 August 2004

THE contrast between the fortunes of Shell and oil minnow Cairn Energy could not be starker. While Shell has been battling to soothe investor concerns about governance and its long-term supplies of oil and gas, Cairn has been moving from strength to strength.

Shares in the Edinburgh-based exploration company have soared since January when it revealed its 5,000 sq km field in India’s Rajasthan desert contained a major oil prospect. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

An oil giant’s road from Rajasthan to ruin

 FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

The Independent: Michael Harrison’s Outlook: An oil giant’s road from Rajasthan to ruin

“Shell, by contrast, has endured the most humiliating, torrid and damaging period in its 100-year history. It is hard to think of a more spectacular fall from grace or a more abject example of management failure.”: “The deeper it dug itself into this hole, the more Shell was forced to lie” 

Fortunes; Failure; Scramble

14 August 2004

It is a long way from the arid deserts of Rajasthan to the Shell Centre on London’s South Bank. But two events this week provide a link.

One was the announcement by Cairn Energy that it had made yet another significant oil discovery in a region of India hitherto better known for its sumptuous pink palaces and backpacking tourists. The other was the disclosure that Shell’s former head of exploration and production, Walter van de Vijver, is to receive a £2.5m pay-off after being sacked for his part in the company’s reserves scandal. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Times: Big shot

The Times: Big shot: “Another oil discovery in India, another 6 per cent jump in Cairn’s share price.”

August 11, 2004

WHILE Bill Gammell, Cairn Energy’s chief executive, was enjoying his summer holiday at the Fife seaside resort of Elie yesterday, his shareholders were basking in the FTSE’s sun. Another oil discovery in India, another 6 per cent jump in Cairn’s share price.

It has been a stellar year for all associated with Cairn, in particular Edinburgh-based Mr Gammell, who set up the company 24 years ago. Along with Cairn shareholders, who have watched the company’s share price almost quadruple this year, Mr Gammell, 51, can count the good fortune of some astute management. His million Cairn shares are now worth £14 million, a far cry from when he and his senior management team decided to buy Shell’s interest in the Rajasthan exploration block, western India, for £3.9 million two years ago. The move proved Cairn’s making. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Times: Tempus: Cairn Energy

The Times: Tempus: Cairn Energy: “and yesterday it announced its fourth, from a Rajasthani field it nabbed off Shell for just £4 million two years ago.”

By Angela Jameson

August 11, 2004

CAIRN ENERGY makes discovering oil in India look easy. It has declared three major discoveries in the sub-continent since January alone and yesterday it announced its fourth, from a Rajasthani field it nabbed off Shell for just £4 million two years ago. In that time, Cairn’s shares, up 6 per cent yesterday to £14, have leapt by 283 per cent. But now that the discoveries have been made, investors want to hear how all that oil in the ground can be turned into cash in the bank. Development of the fields will cost hundreds of millions of pounds, but given the City’s appetite for Cairn shares, fundraising should not be a problem. The question is whether Cairn will want to develop its own discoveries. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Cairn Energy… has made its fourth oil discovery in seven months

The Times: Need to know: “Cairn Energy… has made its fourth oil discovery in seven months at the western Indian exploration block that it bought from Shell two years ago for just £3.9 million.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Telegraph: City Comment: Cairn sucks Shell dry

Daily Telegraph: City Comment: Cairn sucks Shell dry

Four strikes and Cairn hits big time

Traditionally, Indian elephants have big tusks and small ears. Now the big game hunters at Cairn Energy have discovered a new species, and it’s enough to send the company into the FTSE 100 index next month.

This elephant is black, rather than grey, and is under the ground rather than on it. It is, of course, a big new oilfield, and the timing could hardly be better. Cairn’s latest drilling report means that it has found nearly two billion barrels on just one-tenth of the area of its concession in northern Rajasthan. It plans to drill 15 more wells on the 5,800 sq.km block. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

A £2.2bn Indian summer for rugby international who struck black gold

The Independent: Bill Gammell: A £2.2bn Indian summer for rugby international who struck black gold

“And Cairn’s success will be all the more satisfying because it came at the expense of the oil giant Shell, which sold it the Rajasthan field for the paltry sum of £4m.

By Saeed Shah

11 August 2004

As a tall, rangy winger who won five caps for Scotland at rugby union, Bill Gammell had achieved more by the age of 25 than most people manage in a lifetime. But sport was only the beginning of the adventure for the Edinburgh-born son of a financier. And yesterday came confirmation that the 51-year-old has struck gold again.

Or, more specifically, black gold. Cairn Energy, the company he set up in Edinburgh after his sporting career was ended by injury, announced its fourth major discovery of oil in Rajasthan, India. Cairn is now worth £2.2bn and stands on the brink of being admitted to the FTSE 100 index of Britain’s leading companies. Mr Gammell’s own share in the company is worth £14m. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Guardian: Filthy lucre: Oil, oil – everywhere!

The Guardian: Filthy lucre: Oil, oil – everywhere!

“And what about Rajasthan? Shell had more or less abandoned prospecting there, but oil minnow Cairn Energy made several major finds this year and reckons Rajasthan could be the new Texas”

Stephen Moss

Thursday August 5, 2004

Oil prices are soaring, stock markets are falling, the end of the world is nigh. Purnomo Yusgiantoro, the Indonesian president of Opec, has warned that the cartel will not be able to increase production to bring down prices, the rise in which has been fuelled by uncertainty over the future of Russian oil giant Yukos and attacks on pipelines in Iraq. Better fill up now before we hit $50 a barrel.

The 11 members of Opec – Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela – supply more than 40% of the world’s oil and have more than 75% of all proven reserves. They have us over a … well, they’ve certainly got us where they want us. Yusgiantoro’s statement may even be a bargaining ploy. So the answer, surely, is to start looking beyond Opec. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Telegraph: It’s a big bite for bureaucrats

Daily Telegraph: It’s a big bite for bureaucrats

“Shell shareholders are writing the cheques and, as the American lawyers get going, they will be writing more and bigger ones.”

City comment

Edited by Neil Collins, City Editor

(Filed: 30/07/2004)

Even given the salaries at the Financial Services Authority (pay peanuts and you get. . .) £17m should cover quite a few of them, so it was a good day for the bureaucrats yesterday. The fine, levied on Shell for breaching the catch-all rules on “market abuse” looks modest compared with the $120m hit from the Securities & Exchange Commission in America, but everything’s bigger over there.

In truth, the fines are a classic case of kicking the dog to punish the cat, since those in charge when Shell overstated its oil reserves have all gone (and we may be sure they have been well rewarded for their incompetence). Shell shareholders are writing the cheques and, as the American lawyers get going, they will be writing more and bigger ones. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Guardian: Cairn raises £103m for exploration in India

The Guardian: Cairn raises £103m for exploration in India: “Cairn bought its assets in the province from Shell last year for $7.2m (£4m) and its stock price has more than tripled since”

Richard Wray

Saturday July 3, 2004

Cairn Energy, the oil exploration firm that has seen its shares more than triple in value this year, yesterday raised just under £103m to fund the continued development of its operations in Rajasthan, western India.

Cairn bought its assets in the province from Shell last year for $7.2m (£4m) and its stock price has more than tripled since it reported its first discovery there in January.

Yesterday the company raised £102.9m in a placing priced at £13.70 a share. At the start of the year Cairn’s shares were changing hands at less than £4 each. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Daily Telegraph: Cairn raises £102m for India field

Daily Telegraph: Cairn raises £102m for India field: “Cairn shares have more than tripled since January, and the finds on the former Shell site”

By Philip Aldrick (Filed: 03/07/2004)

Cairn Energy, the Scottish oil and gas exploration company, yesterday raised £102.9m to fund the development of its vast oil field in Rajasthan, northern India.

The cash was raised by way of a placing with institutions of 7.5m new shares at £13.70. The fundraising was twice oversubscribed and increased the share capital of the company by 5pc.

Cairn has made three major strikes in the 3,125 sq mile field and drilled 25 wells. Chief executive Bill Gammell said there was still “an awful lot of drilling to do. We’ve certainly got at least another 30 wells ahead of us.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Cairn Energy share placing set to raise £100m

Financial Times: Cairn Energy share placing set to raise £100m: “fourfold jump in its share price”: “field it acquired from Shell”

By Friederike Tiesenhausen Cave

Jul 03, 2004

Cairn Energy yesterday cashed in on the fourfold jump in its share price since the start of the year by placing 7.5m shares to raise approximately £100m.

The Edinburgh-based company has become one of the outstanding successes on the London Stock Exchange this year after striking oil three times in Rajasthan, western India, in a field it acquired from Shell, the oil and gas group.

Bill Gammell, chief executive, said: “The proceeds of the placing will provide additional flexibility for ongoing operations, supporting accelerated development of existing discoveries and further exploration activities in Rajasthan.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell to take £180m charge

The Times: Shell to take £180m charge

“The news is a further blow to the company’s embattled shareholders”

By Andrew Ellson,

July 01, 2004

Shell, the Anglo-Dutch oil company, has announced its exploration and production business will take a charge to earnings of about $330 million (£180 million) after tax in the second quarter of this year.

The charge relates to the unsuccessful drilling and seismic studies of several exploration wells in the North Sea and off the coast of Ireland. Shell acquired these exploration rights with the purchase of Enterprise Oil in 2002.

The charge would not have not have an impact on the company’s proven reserves, Shell said in a statement. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Cairn director buys £624,000 of company shares

The Independent: Cairn director buys £624,000 of company shares

By Saeed Shah

23 June 2004

The deputy chairman of Cairn Energy splashed out nearly £624,000 on shares in the company yesterday, following large share purchases by other company directors recently.

Analysts said the amount of personal wealth being put into Cairn shares by directors indicated that the company’s huge discoveries at a field in India could be even more promising than previously thought.

The directors have been buying even though the stock has already trebled in value since the find was made public in January. Cairn is currently in the process of drilling appraisal wells at its field in Rajasthan, which was bought from the troubled oil giant Shell for just £4m before the discoveries. Any more positive news that emerges on the field will add to Shell’s embarrassment over the sale. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Cairn Energy

ThisIsMoney.com: Cairn Energy

Posted 21 june 04

Price: 1200p Monthly rise: 20.2%.

MAJOR oil finds in India have sent shares in Cairn soaring this year and its most recent update showed that the company expected to extract more from its field in Rajasthan than it had initially hoped.

Chief executive Bill Gammell pulled off a major coup when he picked up the field from Shell, but his company’s share price jump has also been helped by sharply higher oil prices in recent months.

The share price has tripled so far this year, and at last week’s closing price, the Scottish company was valued at £1.8bn, which means it is knocking on the door of the FTSE 100 index. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The Observer: Whose eyes are on Cairn Energy?

The Observer: Whose eyes are on Cairn Energy?

Sunday 6 June 2004

Is Cairn Energy about to become another British oil exploration and production company doing so well that it will attract predatory interest from one of the majors?

We have seen it happen with Lasmo and Enterprise, medium-sized exploration companies, swallowed by larger competitors. Cairn was yesterday’s minnow, but now it is growing fast thanks to promising discoveries off the Indian coast.

A year ago, Cairn’s stock traded at £3, now the price is £11; several brokers reckon £15 is not an unreasonable target in the short term. Cairn’s shares soared last week after a successful drilling report at its ‘appraisal’ well in north Rajasthan. But the firm produces just 32,000 barrels a day. Enterprise notched up 200,000 a day before it was taken over by Shell for £3.5 billion in 2002. So isn’t Cairn’s share price too high? read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

India fall eclipses Cairn’s oil boost

The find has been a source of continued embarrassment to Shell, which sold its share in the field to Cairn for $7.25m (£4m) 18 months ago.

Daily Telegraph: India fall eclipses Cairn’s oil boost

By Christopher Hope, Business Correspondent (Filed: 18/05/2004)

Investors’ concerns about the new left of centre government in India overshadowed news from Cairn Energy that its new find in Rajasthan will yield more oil than expected.

Cairn’s shares have jumped by more than 170pc since January when it unveiled the discovery of an enormous oil field in northern India, transforming the Scottish company into Britain’s biggest independent oil and gas business.
read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.