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Cairn India
Falling crude price will impact cairn...
Posted by :
HarikrishnanTracked by: 0 Boarder
Falling crude price will add pressure on stocks like RIL and Cairn, as Merrill Lynch cut target by 15% for RIL....
sell
Posted by :
retrobrokerTracked by: 0 Boarder
true --- 89 levels for cairn were MUST BUY levels...however i am waiting for it to break 130 -- and see it grind lower all the way to 110 ---- cant say the same for crude though---- last yr this time the bull run for crude was building up -- and as all analysts said --- oil was going to dry up and Goldman sachs said it wud touch $200--- well its arnd 45 now and i dnt see it breachin 45---i see it faitrly priced at arnd 65-70 --nuff said...
In reply to:
sell
Posted by :
viperexpress
One the fateful day in october 3rd week it went to Rs89 levels, then the price has clawed back to 130-140 levels in 4-5 sessions and stayed there inspite of crude nosediving from 60-70$ (oct) to 45$ (now). That means it has out performed crude in the last one and half month. I agree 100-110 levels are great to enter this script. 
sell
Posted by : viperexpressTracked by: 0 Boarder
One the fateful day in october 3rd week it went to Rs89 levels, then the price has clawed back to 130-140 levels in 4-5 sessions and stayed there inspite of crude nosediving from 60-70$ (oct) to 45$ (now). That means it has out performed crude in the last one and half month. I agree 100-110 levels are great to enter this script....
In reply to:
sell
Posted by : retrobroker
rightly said..but it will not fall below 100...though it had when markets wer arnd 2200---at 45-50$ crude it is trading at 130-140--- 130 is a resistance but again this does not count in the current market scenario..110 level is a veryyy level to enter this stock...for risk free returns.
sell
Posted by : retrobrokerTracked by: 0 Boarder
rightly said..but it will not fall below 100...though it had when markets wer arnd 2200---at 45-50$ crude it is trading at 130-140--- 130 is a resistance but again this does not count in the current market scenario..110 level is a veryyy level to enter this stock...for risk free returns....
sell
Posted by :
marketbearTracked by: 0 Boarder
Cairn will be weak in short term as crude is going to touch low again and cairn is purely linked with crude prices. Stock can even fall below 100...
ICICI Securities has rated Cairn a `buy`
Posted by : HarikrishnanTracked by: 0 Boarder
Harikrishnan. ICICI Securities has rated Cairn a `buy`
ICICI Securities has rated Cairn a ‘buy’ while reducing its fair value estimates by 6% to Rs 245 per share.
“We maintain Cairn as our top pick in the sector on the back of impending commencement of production from its oil blocks at Rajasthan and significant free cashflow generation going forward. At present, Cairn’s stock price implies long-term crude price of /bl vis-à-vis /bl for ONGC,” the outfit said in a report.
Explaining the logic behind trimming Cairn fair value estimates, ICICI Securities said: “In line with our revisiting crude price and exchange rate estimates, we are revising our long-term INR-US$ exchange rate estimates to 40 (from 39) and increasing the cost of equity for Cairn to 15.2% from 14%.” ...
Buy Cairn India:Harikrishnan.k
Posted by : HarikrishnanTracked by: 0 Boarder
Harikrishnan.. Buy Cairn India.
Cairn India Limited is an India-based company engaged in oil and gas exploration and production. As of December 31, 2007, the Company had two significant producing assets: at CB/OS-2 in the Cambay Basin, off the Gujarat coast in western India, and Ravva, located in the Krishna-Godavari Basin in the Bay of Bengal, off the Andhra Pradesh coastline. Cairn’s gross operated production across India, during the year ended December 31, 2007, was 73,188 barrels of oil equivalent per day (boepd). The Company’s net working interest was 18,698 boepd. In the CB/OS-2 block, the Lakshmi, Gauri and CB-X fields are primarily gas producing, averaging a combined 50 million standard cubic feet of gas per day (mmscf/d) sales gas rate. Average gross production from the Ravva field, for 2007, was 60,441 boepd (comprising average oil production of 48,078 boepd and average gas production of 74.18 mmscf/d)....
Cairn to start seismic work in Ravva fields
Posted by : HarikrishnanTracked by: 0 Boarder
Cairn India is in the process of finalising plans to take up time lapse 4D seismic studies in the deeper sands of the Ravva Oil fields in the Krishna Godavari basin region.
This is aimed at enhancing the recovery in the oil wells for the next phase of growth. The Ravva fields have been a cornerstone for Cairn’s growth in India, even as the company takes up other fields in India and the region.
“The 4D seismic time lapse study will be taken up early 2009 and help assess additional potential in the region and thereafter chart out investment plans,” a senior company official told Business Line.
Ravva fields have sustained an average production level of 50,000 barrels a day, contributing to country’s oil production and through various taxes.
Evaluating options
As is the case with oil fields faced with the prospect of plateau and decline, the Cairn consortium is evaluating various options to upgrade reserves.
These include enhancing the recovery through water injection and gas lift support, undertaking 4D seismic work in discovered reservoirs aimed at adding incremental reserves and developing them through drilling campaigns.
The company also plans to explore deeper wells and to tap into potential development of satellite pools and discoveries, he explained.
Already two exploration wells have been drilled. Four small-sized oil and gas discoveries made.
These new wells are under test production yielding 525 barrels a day.
Technical work is underway to convert these discoveries into commercially extractible assets.
Investments
A modelling study by WesternGenco indicated that the Ravva fields are ideal for time lapse (4D) seismic acquisition, he said.
Cairn and its partners have invested .01 billion so far in Ravva for exploration, development and production yielding 200 million barrels of oil.
This resulted in .07 billion to the Central Government in profit petroleum, royalty and cess.
In addition, the Centre secured gas royalty of million and the field also generated sales tax of Rs 1,335 crore for the Andhra Pradesh Government.
What was seen as marginal field has helped generate significant revenues over the years and also in the form of taxes and royalty.
Efforts will now be stepped up to sustain production in these wells, he explained.
Ravva field is known for lowest cost of production, which is now about .5 a barrel.
In fact, it was less than in 2007. While the company builds on its investments in other parts of the country including Rajasthan, any incremental gain will add value, he felt.
...
Cairn urges Ministry to decide fast on nominee refineries
Posted by : sharepredictorTracked by: 0 Boarder
sell and get out. Oil sector will be out of favor for the next 2-3 years. Oil wont go above 60$ and that will eat away cairn`s profits. Buy when the price reaches Rs40 or Rs50...
In reply to:
Cairn urges Ministry to decide fast on nominee refineries
Posted by : readarticle
whats the impact on the stock price and does this benefit the company?
Cairn down taget=60....
Posted by : sharepredictorTracked by: 0 Boarder
sell the stock. It is trading today at a PE of 75. If we consider normal PE of 25, it should be trading around Rs50. Current stock price is not justified. I think the stock will correct seriously now. Also it formed a h&f pattern, so it should theoretically slide to 90 soon before another leg of down move starts....
In reply to:
Cairn down taget=60....
Posted by : viperexpress
Marketman is our friend. His prediction is needed to make sure that your wallet is ready to buy when the prices are near his predictions. But even he couldnt predict Unitech`s current levels. I hope his predictions on Cairn comes true as I will then buy in tons.
Cairn down taget=60....
Posted by : viperexpressTracked by: 0 Boarder
Marketman is our friend. His prediction is needed to make sure that your wallet is ready to buy when the prices are near his predictions. But even he couldnt predict Unitech`s current levels. I hope his predictions on Cairn comes true as I will then buy in tons....
In reply to:
Cairn down taget=60....
Posted by : marketman
The stock of cairn india may drop to 60 levels in coming sessions....
India`s cabinet has rejected an oil ministry proposal to award a deepwater block off the west coast to Cairn India Ltd (CAIL.BO: Quote, Profile, Resea
Posted by : HarikrishnanTracked by: 0 Boarder
India`s cabinet has rejected an oil ministry proposal to award a deepwater block off the west coast to Cairn India Ltd a unit of U.K. explorer Cairn Energy Plc a government source said on Thursday.
The oil ministry official, who could not be named, told Reuters the company had not offered the government an attractive enough share of potential production.
Earlier, Oil Secretary R.S. Pandey said the federal cabinet had approved the award of 44 out of 45 blocks as recommended by the oil ministry. "One Mumbai basin block has not been approved by the cabinet
...
Govt canceles Cairn India bid for Mumbai basin
Posted by : HarikrishnanTracked by: 0 Boarder
Govt canceles Cairn India bid for Mumbai basin.... more news??...
Cairn urges Ministry to decide fast on nominee refineries
Posted by : readarticleTracked by: 0 Boarder
whats the impact on the stock price and does this benefit the company?...
In reply to:
Cairn urges Ministry to decide fast on nominee refineries
Posted by : Harikrishnan
Cairn India Ltd (CIL) has approached the Petroleum Ministry to take an early call on the refineries it will nominate to lift Rajasthan crude. The company wants a clear picture, so that a decision on the valuation of crude can be taken before the production commences, official sources said.
Cairn, which follows the January-December financial year, is targeting second quarter of 2009 to start commercial production from its Barmer fields in Rajasthan. “Since the price of the crude is to be decided between the Government nominee/nominees and the contractor, it is important to have a clear indication,” sources told Business Line.
production sharing contract
The production sharing contract (PSC) signed with the Union Government stipulates that the parities – the buyers and sellers – should meet six months prior to the commencement of commercial production, to establish an appropriate basket of crude oil to calculate the price.
Cairn India plans to produce 8.25 million tonnes a year of crude at its Barmer oil field. ONGC is a 30 per cent partner in the field.
Official sources said that “discussions on nominee refineries are going on.”
The situation arose since Mangalore Refinery and Petrochemicals Ltd (MRPL), which is the official nominee, has indicated that it can lift only up to 1.2 million tonnes. This has lead to the Government considering having more than one nominee.
While Indian Oil Corporation Ltd has said it can take up to two million tonnes of crude, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation can take up to one million tonnes each.
However, now MRPL has indicated that it can take more of Cairn’s crude if it is given higher quantity of ONGC’s Mumbai High crude for blending with Rajasthan crude.
Benchmarking
Both Cairn and ONGC, as sellers, have agreed on a sellers’ benchmark offer price consisting of a basket of crude oils, whose blend is similar to the Rajasthan crude and which is actively traded in the international oil market and reported in Platts. The refiners are comparing Cairn’s crude with Maya (Mexican crude variety) or Ratawi (neutral zone), currently sold at a substantial discount.
The PSC requires price to be fixed by references to a basket of f.o.b. (free on board) crude adjusted for differences in quality, delivery time, quantity and payment terms.
Cairn urges Ministry to decide fast on nominee refineries
Posted by : HarikrishnanTracked by: 0 Boarder
Cairn India Ltd (CIL) has approached the Petroleum Ministry to take an early call on the refineries it will nominate to lift Rajasthan crude. The company wants a clear picture, so that a decision on the valuation of crude can be taken before the production commences, official sources said.
Cairn, which follows the January-December financial year, is targeting second quarter of 2009 to start commercial production from its Barmer fields in Rajasthan. “Since the price of the crude is to be decided between the Government nominee/nominees and the contractor, it is important to have a clear indication,” sources told Business Line.
production sharing contract
The production sharing contract (PSC) signed with the Union Government stipulates that the parities – the buyers and sellers – should meet six months prior to the commencement of commercial production, to establish an appropriate basket of crude oil to calculate the price.
Cairn India plans to produce 8.25 million tonnes a year of crude at its Barmer oil field. ONGC is a 30 per cent partner in the field.
Official sources said that “discussions on nominee refineries are going on.”
The situation arose since Mangalore Refinery and Petrochemicals Ltd (MRPL), which is the official nominee, has indicated that it can lift only up to 1.2 million tonnes. This has lead to the Government considering having more than one nominee.
While Indian Oil Corporation Ltd has said it can take up to two million tonnes of crude, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation can take up to one million tonnes each.
However, now MRPL has indicated that it can take more of Cairn’s crude if it is given higher quantity of ONGC’s Mumbai High crude for blending with Rajasthan crude.
Benchmarking
Both Cairn and ONGC, as sellers, have agreed on a sellers’ benchmark offer price consisting of a basket of crude oils, whose blend is similar to the Rajasthan crude and which is actively traded in the international oil market and reported in Platts. The refiners are comparing Cairn’s crude with Maya (Mexican crude variety) or Ratawi (neutral zone), currently sold at a substantial discount.
The PSC requires price to be fixed by references to a basket of f.o.b. (free on board) crude adjusted for differences in quality, delivery time, quantity and payment terms.
...
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