Cairn raises 6m pounds for onshore buys

CAIRN Energy, the oil and gas independent, is raising pounds 6m via a placing and open offer to acquire stakes in several small onshore fields from Arco, the US giant, for a total pounds 1.2m.

The move, priced at 27p a share, was accompanied by a fall in interim losses from pounds 1.2m to pounds 161,000 for the half-year to 30 June on turnover down from pounds 6.1m to pounds 5.7m.

Cairn said the new funds would be used to buy 25 per cent stakes in Palmers Wood and Storrington oil fields, in Surrey and West Sussex.

The purchase takes Cairn's total interests in the fields to 75 per cent each. Its share of their output will jump from 500 to 750 barrels per day. The company is also acquiring other interests, including a 12.5 per cent stake in the Albury gas field, near Guildford. It will use the balance to develop other assets and repay debts.