This year, 2017, should see Cairn progress to become a balanced E & P business, adds the Canadian broker.
Kraken (Cairn 29.5%) and Catcher (20% Cairn) in the North Sea are expected to come onstream later this year with net plateau production in 2018 of 20–25,000b/d (barrels per day).
Majors such as Total buying into fields in Africa, meanwhile, have highlighted the value of the 2.7bnbbl SNE deepwater field in Senegal (40% Cairn and operator), which shares many similar characteristics.
The conclusion of the upcoming SNE-6 interference test should crystallize industry interest believes RBC.
Deal flow could create the potential for shareholder returns worth 40–80p/share, adds RBC, which has a price target of 270p (from 250p) and outperform rating.
Cairn shares rose 1% to 208.2p.