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Shares in FTSE 250 oil explorer Cairn Energy (LON:CNE) fell by 4.63% to 221.46p (as of 10:30 BST) after the company recorded a $231 million loss and did not receive $396 million in expected income due its ongoing tax disputes with the Indian Income Tax Department. The company is currently awaiting the judgement of an arbitration tribunal in the Hague and management said that they were confident in their legal position.
Oil sales from the first half of the year generated revenues of $172 million, which compares with revenues of $10.8 million during the first six months of 2017.
Chief executive Simon Thompson commented: “Cairn has made strong progress across its balanced portfolio. Cash flow from the North Sea is now established and development projects in Senegal and Norway are well advanced to support the production base over the long term.
We are also delighted to have enhanced our exploration portfolio with potentially high impact opportunities across frontier and emerging basins. This additional acreage supplements our existing active programmes in the UK, Norway and Mexico.
This continued strategic delivery, together with our strong balance sheet, ensures Cairn remains well-positioned to access material value growth potential“.