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Sesa Sterlite Limited: Cairn India Announces Annual Financial Results for the Period Ended 31st March, 2014

April 23, 2014

PANJIM, India, April 23, 2014 /PRNewswire/ –

The following release was issued today by Sesa Sterlite Limited’s subsidiary Cairn
India Limited.

Cairn India Limited

Annual Financial Results for the period ended 31st March, 2014

Cairn India Limited (CIL), one of the fastest growing independent oil exploration and
production companies in the world*, today announces its annual financial results for the
period ending 31st March, 2014.

(Logo:
http://photos.prnewswire.com/prnh/20140117/663814 )

                          Annual FY 14 Highlights

Financial:

        - Record revenue of INR 18,762 crore (US$ 3.1 bn), up 7% YoY on account of
          enhanced volumes
        - EBITDA of INR 13,877 crore (US$ 2.3 bn) driven by low operational cost of US$
          3.9/bbl in onshore RJ block
        - Profit After Tax of INR 12,432 crore (US$ 2.1 bn), Diluted EPS of INR 64.95 up
          3% YoY
        - Generated Cash Flow From Operations of INR 11,093 crore (US$ 1.8 bn), up 0.3%
          YoY
        - Record Gross capex INR 5,471 crore (US$ 0.9 bn) led by all-time high
          exploration activity
        - Achieved Reserve Replacement Ratio of 100%
        - Gross contribution of INR 24,299 crore (>US$ 4 bn) to the exchequer for the
          year

Exploration:

        - Rajasthan
             - Drilled out 50% of gross risked prospective resources in the fiscal year
             as planned
             - Opened up 5 new play types and added oil in place resources of over 1
             billion boe
             - Of the 17 wells drilled to date, 14 wells have found hydrocarbons
             - Established 6 discoveries (2 in the quarter and 1 in April 2014) since
             resumption of exploration in 2013
                - 29th Discovery, Guda-South-7 well flowed oil at an initial rate of 92
                bopd from two zones in the DDCS formation
                - 1 discovery in the Barmer Hill formation- the company's 30th,
                NR-3-2100 well, flowed oil at an initial rate of 62 bopd
                - 1 discovery was also established in April 2014; our 31st discovery,
                Kaameshwari West-8, flowed oil at 117 bopd from the Dharvi Dungar formation
        - KG Onshore
             - Extended flow test on Nagayalanka-1z-ST well completed with maximum flow
             rate of 850 bopd and further evaluation is in progress
        - High level of seismic activity across the portfolio especially in South
          Africa
             - Completed 2,378 square km of 3D seismic data acquisition, 42% of the plan
             - Completed 3,000 line km of 2D seismic data acquisition, 31% of the plan

Production and Development:

        - Achieved 6% yoy growth in average daily gross operated production
             - Highest ever crude oil production of ~76 mmbbls (~11 MMT) for the year,
             contributing to ~30% domestic crude oil production**
             - Achieved the targeted production rate of 200,000 boepd in the prolific
             Rajasthan block in March 2014, a sequential growth of 2% at 190,881 boepd in the
             quarter
        - Raag-S-1 well, 26th discovery in Rajasthan brought on test production
          within a year of discovery under IDP

* Platts 2013 Global rankings, ** based on data from MoPNG, February 2014

Mr. Elango P, Interim CEO and Whole time Director, Cairn India said:

“Our performance over the last fiscal reflects of our unique position of delivering
industry-leading production growth which has contributed to reduction in imports and has
also benefited all stakeholders.

In Rajasthan, by combining a world-class asset with our proven technical expertise and
disciplined approach to execution, we achieved a landmark cumulative oil production of 200
million barrels and a 200,000 boepd production milestone in March 2014.

We have also significantly added to our resource base by delivering a rapid
exploration and appraisal drilling program with a success ratio of 50%, establishing 6
discoveries and adding over 1 billion barrels of oil and gas in-place.

Going forward, we continue to remain focused on executing multiple projects especially
in Barmer Basin, by deploying talent and technology to achieve world class recovery and
discovery rates.”

                   Corporate and Regulatory Developments

Corporate

In line with our strategy to consistently reward the shareholders of the company, the
Cairn India Board recommended a final dividend of INR 6.50 per Equity share, entailing an
outflow of approximately INR 1,451 crore including dividend distribution tax. This is
subject to approval of shareholders at the ensuing Annual General Meeting of the Company
scheduled to be held on 23rd July, 2014. This along with the interim dividend paid in
October 2013 cumulatively amounts to around 22.46% of our annual consolidated net profit
according to our stated dividend policy.

On the backdrop of strong cash flows generated through our operational excellence and
world class asset base, we have also opened the Equity Share Buyback programme as a
shareholder reward mechanism, at a price not exceeding INR 335 per share. Till 31st March
2014, we have bought back 3,270,549 shares for a total consideration of approximately INR
106 crore from the open market through stock exchanges.

We received a show cause notice from the Income Tax Department for an alleged failure
to deduct withholding tax on alleged capital gains in 2006-07, arising in the hands of
Cairn UK Holdings Limited, erstwhile parent company. We have responded appropriately to
the said notice and the matter is under consideration. Cairn India has always been fully
compliant with all Indian income tax laws.

Regulatory

During the year, we continued to engage effectively with all Government stakeholders
for an informed policy discourse. FY 14 saw increased engagement between Ministry of
Petroleum & Natural Gas and industry associations to improvise regulatory and operational
environment.

To help India in energy security, the Government undertook initiatives such as
Integrated Development Policy, introduced policy guidelines for exploration and
exploitation of shale gas under the nomination regime, and constituting a Standing
Committee on Petroleum Industry Practices, among others.

Industry is looking forward to PSC extension policy, fiscal model for the next round
of NELP auctions and shale gas policy for Pre-NELP and NELP blocks.

                              Financial Review

        INR Crore           Q4 FY 14 Q4 FY 13 y-o-y (%) Q3 FY 14 q-o-q (%)

        Revenue              5,049    4,363      16%     5,000      1%
        EBITDA               3,654    2,912      26%     3,555      3%
        Margin (%)            72%      67%                71%
        PAT                  3,035    2,564      18%     2,884      5%
        Margin (%)            60%      59%                58%
        EPS (INR) - Diluted  15.85    13.41      18%     15.05      5%
        Cash EPS (INR)       17.75    13.30      33%     16.90      5%

        US$ million         Q4 FY 14 Q4 FY 13 y-o-y (%) Q3 FY 14 q-o-q (%)

        Revenue               817      806       1%       806       1%
        EBITDA                592      538       10%      573       3%
        Margin (%)            72%      66%                71%
        PAT                   491      474       4%     465         6%
        Margin (%)            60%      59%                58%
        EPS (US$) - Diluted   0.26     0.25      4%       0.24      8%
        Cash EPS (US$)        0.29     0.24      21%      0.27      7%

Revenue reported for Q4 FY14, post profit sharing with the Government of India and the
royalty expense in the Rajasthan block, was INR 5,049 crore up 1% QoQ driven by higher
entitlement revenue. During the quarter, profit petroleum of INR 1,201 crore (US$ 194
million) and the royalty of INR 1,097 crore (US$ 178 million) was for Rajasthan block and
profit petroleum of INR 107 crore (US$ 17 million) for other blocks.

The operating expense during Q4 FY14 was higher at INR 345 crore due to maintenance
activities carried out; Expenditure on Cess is lower at INR 683 crore on account of
reversal of levy of Education Cess and SHE cess of 3% on Oil Cess following the order of
Central Bureau of Excise & Customs. Consequently, Earnings before Interest, Tax,
Depreciation and Amortisation for the quarter was INR 3,654 crore (US$ 592 million), up 3%
QoQ. Profit After Tax in Q4 FY14 was INR 3,035 crore, up by 5% QoQ primarily due to
increase in investment income consequent to realisation of gains on maturity of investible
funds and one time charge of ESOP policy change accounted in previous quarter. The cash
earnings per share was INR 17.75. Overall capex incurred was higher at ~US$ 362 million
(gross) and US$ 237 million (net).

                            Year end Year end       Year end Year end
                             FY 14    FY 13   y-o-y  FY 14    FY 13   y-o-y

                                INR Crore      (%)     US$ million     (%)

        Revenue              18,762   17,524   7%    3,106    3,223   (4%)
        EBITDA               13,877   13,012   7%    2,297    2,394   (4%)
        Margin (%)            74%      74%            74%      74%
        PAT                  12,432   12,056   3%    2,058    2,218   (7%)
        Margin (%)            66%      69%            66%      69%
        EPS (INR/US$) -
        Diluted              64.95    63.06    3%     1.08     1.16   (7%)
        Cash EPS (INR/US$)   64.11    58.86    9%     1.06     1.08   (2%)

Revenue reported for FY 14, post profit sharing with the GoI and the royalty expense
in the Rajasthan block, was INR 18,762 crore up 7% YoY driven by increase in working
interest volume to 137.1 kboepd (PY – 127.8 kboepd) and benefit from rupee depreciation.
This increase has been partly offset by higher profit sharing with GoI in DA1 consequent
to tranche change. During the year, profit petroleum for Rajasthan block was INR 4,770
crore (US$ 788 million) and the royalty for the Rajasthan block was INR 4,180 crore (US$
689 million) and profit petroleum of INR 825 crore (US$ 137 million) for other blocks.

FY 14 Earnings before Interest, Tax, Depreciation and Amortisation was INR 13,877
crore, up 7% compared to the previous year. The operating expenses for the year increased
to INR 1,174 crore primarily due to increase in production from Rajasthan block and
increased maintenance and operation activities. Employee benefit expense for the year was
higher at INR 274 crore primarily due to change in measurement of outstanding stock option
liabilities using the Fair value method (Black-Scholes) as against the previously followed
Intrinsic value method. Forex gain for the year was higher at INR 739 crore on account of
over 10% rupee depreciation against the dollar.

Profit After Tax for the year was INR 12,432 crore, up by 3% YoY. The cash earnings
per share for the year were up 9% at INR 64.11. The company wide capex incurred was ~US$
899 million (gross) and US$ 601 million (net) in the year of which 41% pertains to
exploration and balance to development. Cumulative Capex in RJ at the end of FY14 stands
at US$ 4.3 bn of which US$ 3.8 Bn pertains to DA1 and US$ 0.5 Bn to DA2.

Cash and Cash equivalents as at period end were ~INR 13,707 crore in rupee funds and
~US$ 1,530 million in dollar funds, part of which is expected to be used for share
buy-back and dividends.

Operational Activity across the Portfolio

              Asset          Basin           Exploration Development Production
        India

          1   RJ-ON-90/1     Barmer              Y           Y          Y
          2   CB/OS-2        Cambay                          Y          Y
          3   KG-ONN-2003/1  KG Onshore          Y
          4   KG-OSN-2009/3  KG Offshore         Y
          5   PKGM-1 (Ravva) KG Offshore         Y           Y          Y
          6   MB-DWN-2009/1  Mumbai Offshore     Y
          7   PR-OSN-2004/1  Palar - Pennar      Y

        International

                             Mannar, Sri
          8   SL-2007-01-001 Lanka               Y
                             Orange, South
          9   Block 1        Africa              Y

                             Exploration Review

                                                                             Area
                                            Cairn India's
            Asset          Basin            Interest (%)  JV partners      (in km2)

        India

        1   RJ-ON-90/1     Barmer                70%      ONGC              3,111
                                                          ONGC, Tata
        2   CB/OS-2        Cambay                40%      Petrodyne          207
                                                          ONGC, Ravva Oil,
        3   PKGM-1 (Ravva) KG Offshore          22.5%     Videocon           331
        4   KG-ONN-2003/1  KG Onshore            49%      ONGC              1,273
        5   KG-OSN-2009/3  KG Offshore          100%      -                 1,988
        6   MB-DWN-2009/1  Mumbai Offshore      100%      -                 2,961
                                                          ONGC, Tata
        7   PR-OSN-2004/1  Palar-Pennar          35%      Petrodyne         9,417

        International

                           Mannar, Sri
        8   SL 2007-01-001 Lanka                100%      -                 3,000
                           Orange, South
        9   Block 1        Africa                60%      Petro SA          19,922
            Total                                                           42,210

Cairn India is the Operator in all the blocks with varying participating interests.

During the year, we made significant achievements in our exploration activities paving
the way for exploration led future growth opportunities.

Rajasthan (Block RJ-ON-90/1)

Since resumption of exploration in March 2013, we have drilled out 50% of gross
prospective resource base of 530 million barrels of oil equivalent. The on-going
exploration program has been successful in opening up 5 new play types, proving up a
resource base of over 1 billion boe in place, in addition to existing 4.2 billion boe. Of
the 17 exploration wells drilled to date, over 80% have shown hydrocarbons. Till date, 6
discoveries have been established and the testing of the other hydrocarbon bearing wells
is underway. The evaluation of the discoveries in the tight reservoirs is on-going to
establish recovery rates.

During Q4 FY14, we have tested three exploration wells, leading to two new discoveries
in the block. The Guda-South-7 well flowed oil at an initial rate of 92 bopd from two
zones in the Dharvi Dungar Carbonaceous Shale (DDCS) formation, making it the 29th
Discovery and establishing DDCS as a significant play in the southern part of the block.
The Barmer Hill formation was tested through a well , NR-3-2100, which flowed oil at 62
bopd and was established as the 30th discovery.

In April 2014, another new discovery has been established, Kaameshwari West 8 in
Dharvi Dungar formation, flowing oil at 117 bopd.

With the addition of higher capacity rigs in our drilling program, we have been able
to drill two high impact prospects to test potential gas accumulation in the deeper
section. The initial results obtained are encouraging and testing is underway.

The two year 3D seismic data acquisition programme for ~1,900 square kilometres that
is currently underway will further help in identifying new exploration leads and
augmenting the prospective resource base. As at 31st March, 2014, we have acquired 266
square kilometres of 3D seismic data.

Ravva (Block PKGM-1)

Results from the adoption of established technologies such as 4D seismic at Ravva
Block were encouraging, delivering tremendous value in terms of interpretation of internal
reservoir structure and the identification of depleted and un-swept zones leading to
further development activity.

In November 2013, we commenced drilling of the ‘high temperature, high pressure’ deep
exploration prospect LO110 in Ravva which is intended to test the hydrocarbon potential
within the Late Oligocene sands. The maximum total depth estimated is 4140m of which 2720m
has been drilled, as at 31st March. The campaign has witnessed some weather and
operational challenges; however we expect to complete the drilling activity before the
onset of monsoons.

KG Onshore (Block KG-ONN-2003/1)

The Declaration of Commerciality for the Nagayalanka discovery is currently under
Management Committee review. The Field Development Plan (FDP) is being prepared and is
expected to be submitted in FY 15.

The extended flow test on Nagayalanka-1z-ST appraisal well was completed in March 2014
and the maximum combined flow rate achieved was ~850 bopd. The well has contributed
~14,500 bbls of oil to the domestic oil output in FY14. The evaluation of the results is
in progress with the objective of optimizing development. Drilling is on-going on the
second appraisal well, Nagayalanka-NW-1, with a view to increase the resource base in the
block.

Work is progressing on rebuilding the Exploration portfolio including several
additional exploration prospects within the block. Planning for 315 square km of 3D
seismic data acquisition is underway and is expected to begin in Q4 FY 15.

KG Offshore (Block KG-OSN-2009/3)

With the conditional clearance received from the Government last quarter, the
exploration activity has resumed in the block in March 2014. Approximately, 1050 square km
of 3D seismic data is expected to be acquired over the course of FY 15 with an objective
of building an exploration portfolio across multiple play types. Planning, well
construction design and long lead procurement for the drilling of exploration wells is
expected to begin.

Mumbai Offshore (Block MB-DWN-2009/1)

With the conditional clearance received from the Government last quarter, the
exploration activity has resumed. The tender for acquisition of ~2,000 line-km of 2D
seismic programme has been awarded and the same is expected to begin in the near term.
Planning for acquisition of additional 500 square kilometres of 3D seismic data is
underway.

Palar-Pennar (Block PR-OSN-2004/1)

The application for the shift of the restricted boundary has been accepted by
government authorities paving the way for further exploration activity.

Sri Lanka (Block SL 2007-01-001)

In 2013, we concluded appraisal and commercial studies to determine the next steps for
the gas discoveries made on the block. We continue discussions with the Sri Lankan
Government regarding commercial terms necessary to monetize the discovered gas resources
on the block, urging the policy makers to take a holistic view to maximize benefits from
the maiden natural gas discoveries in the Mannar Basin.

We also participated in Sri Lanka’s offshore bidding round for M-5 block, south of our
current block in the Mannar Basin in November 2013.

South Africa (Block 1)

Following farm-in and assignment of participating interest in the block in early 2013,
we acquired 1,981 square kilometres of 3D seismic data in FY 14. Initial processing of the
data is now complete and advanced processing is ongoing. Additionally, acquisition of
3,000 line kilometres of 2D seismic data was concluded in early March, 2014. Processing of
the new 2D seismic data is now under way. Both the surveys were completed without incident
and on time.

Based on the preliminary assessment of the seismic data, a working petroleum system
with multiple oil and gas plays have been identified in a structural setting similar to
the KG basin in India where we have significant exploration and development experience.
The block lies within the proven oil & gas play trends. The on-going technical evaluation
is expected to de-risk and identify drillable prospects during the year.

                             Operational Review

                                 Q4      Q4              Q3    q-o-q Year end  Year   y-o-y
        Average Daily                           y-o-y                         end FY
        Production      Units   FY 14   FY 13    (%)    FY 14   (%)   FY 14     13     (%)

        Gross operated  Boepd  224,429 202,014   11%   224,493  0%   218,651  205,323  6%
        Oil              Bopd  215,493 193,919   11%   215,093  0%   209,378  195,780  7%
        Gas             Mmscfd   54      49      10%     56    (4%)     56      57    (2%)
        Working
        Interest        Boepd  142,796 126,623   13%   140,830  1%   137,127  127,843  7%

                                                                         Year
                                 Q4    Q4            Q3   q-o-q Year end end  y-o-y
        Average Price                        y-o-y                        FY
        Realization     Units   FY 14 FY 13   (%)   FY 14  (%)   FY 14    13   (%)

        Cairn India    US$/boe  94.4  99.5   (5%)   94.9  (1%)    94.5   97.5 (3%)
        Oil            US$/bbl  95.7  100.6  (5%)   96.3  (1%)    95.8   99.0 (3%)
        Gas            US$/mscf  6.1   5.1    20%    5.9   3%     5.7    4.6   24%

                                                                Participating
            Producing Assets Region              Operator         Interest

        1   RJ-ON-90/1       North Western India Cairn India         70%
        2   PKGM-1 (Ravva)   Eastern India       Cairn India        22.5%
        3   CB/OS-2          Western India       Cairn India         40%

Rajasthan (Block RJ-ON-90/1)

                               Q4      Q4              Q3    q-o-q Year end  Year   y-o-y
        Average Daily                         y-o-y                         end FY
        Production    Units   FY 14   FY 13    (%)    FY 14   (%)   FY 14     13     (%)

        Gross
        operated      Boepd  190,881 168,594   13%   186,359  2%   181,530  169,390  7%
        Oil            Bopd  189,304 168,594   12%   184,982  2%   180,316  169,390  6%
        Gas           Mmscfd    9       -     100%      8     13%     7        -    100%
        Gross DA 1    Boepd  162,245 149,835   8%    160,975  1%   156,662  147,839  6%
        Gross DA 2    Boepd  28,636  18,759    53%   25,384   13%   24,867  21,551   15%
        Gross DA 3    Boepd     -       -       -       -      -      -        -      -
        Working
        Interest      Boepd  133,616 118,016   13%   130,451  2%   127,071  118,573  7%

Production

Cairn successfully achieved its target FY13-14 exit rate of production from Rajasthan
of 200,000 boepd. During the quarter, the Block produced 17.2 mmboe of oil equivalent,
achieving record total production for the year of 66.3 mmboe. In the process, we achieved
the landmark cumulative crude oil production milestone of 200 mmbbls from the RJ block. As
on 31st March, the cumulative total production is at ~216 mmboe.

A total of 129 new wells were brought on production during the year, with 45 wells
added in Q4 FY 14. This has led to the Block achieving gross average production of 181,530
boepd for FY 14, up 7% YoY.

We continue to focus on operational excellence with high standards of HSE practices,
lowering of drilling cycle times, reduction of non-productive time and significant
improvements in rig movement times. The overall uptime of the facilities in Rajasthan
stood at ~98% with an opex of US$ 3.9/bbl for FY 14. MPT completed 2.5 million LTI free
man hours, with Aishwariya field completing 1 year of LTI free production.

In FY 14, Development Area (DA) 1, comprising the Mangala, Aishwariya, Saraswati and
Raageshwari oil & gas fields, produced a gross average 156,662 boepd, up 6% YoY with the
Mangala field being the largest contributor and Aishwariya field adding to the volume
growth. During the year, DA 2, comprising Bhagyam field, produced a gross average of
24,867 boepd, up 15% YoY as a result of the infill drilling program. As on date, DA 3 does
not have any oil and gas producing fields.

Development

Our ongoing capex program is focused on exploration and development activities across
all the assets with 87% of the capex planned to be invested in the RJ Block in next three
years. In Rajasthan, we are focused on infrastructure development for early monetisation
of exploration success and improved reservoir recovery through EOR, infill drilling and
facilities upgrades. As part of this program, plans for redevelopment of Raageshwari Deep
Gas field, implementation of full field polymer flood EOR in the Bhagyam field and better
reservoir performance of the Aishwariya field have led to a net addition of ~50mmboe to 2P
reserves resulting in a 2P Reserve Replacement Ratio of ~100% for FY 14.

We are embarking on the implementation of three major development projects in our
Rajasthan Block.

        - Enhanced oil recovery (EOR) Project including drilling campaign and
          facilities upgrade
             - We are now targeting first polymer injection in the Mangala field EOR
             project, within this fiscal and have awarded all contracts for the execution.
             - Polymer flood EOR plan is in place for Bhagyam field
             - We commenced the Alkaline Surfactant Polymer pilot at Mangala and plan to
             extend polymer flood EOR to Aishwariya field
        - Barmer Hill development
             - The Barmer hill formation which is spread across the block has the
             potential to become a new major oil play in India and can be classified into 2
             major development opportunities
                - Barmer Hill North consisting of oil prone porcellanite rocks
                - Barmer Hill South consisting of muddy porcellanites
             - Exploration results confirm the potential of Barmer Hill across the RJ
             block, with better than expected results in Vijaya & Vandana.
             - Aishwariya Barmer Hill (Aish-4 BH), the 27th discovery in Barmer Hill
             North in DA 1, has been placed on long term testing.
             - Over the next 3 months, drilling and hydro fracturing horizontal and
             vertical wells will be carried out to optimize the application of hydro-fracturing
             technology.
             - We are putting together execution plans to scale up the tight reservoir
             development of the BH in the northern area of the block replicating the North
             American development model; permeability of the BH reservoir has been proved to be
             better than shale by an order of magnitude.
             - Satellite Fields
                - FDPs for the two fields, NI and NE, in DA 2 are awaiting approval from
                regulators.
                - Raag-S-1, the 26th discovery in DA 1, was brought on test production
                within a year of discovery under Integrated Block Development Policy (IDP).
        - Gas development
             - Development of Raageshwari Deep Gas field is underway
             - Initial results from 2 high impact prospects drilled during the current
             exploration campaign are encouraging
             - We have plans to upgrade the existing Raageshwari Gas Terminal and are
             looking at options to construct a new gas pipeline to monetise the additional gas
             potential in the block.
             - Infrastructure is also being created to capture significant NGLs potential
             in the block

Facilities

With increased scale and size of operations, we have embarked on major initiatives for
facilities enhancement.

        - Fluid handling capacity at Mangala Processing Terminal (MPT)
             - We have made significant progress on up-grading the fluid (oil, gas,
             water) handling capacity at the MPT to meet the anticipated additional
             requirements.
             - This is associated with the increasing water cuts as the fields mature and
             more water is injected for pressure support and sweep efficiency.
             - This project will augment the water injection facilities by quality and
             quantity.
        - Salaya-Bhogat Pipeline
             - 100% of the pipeline has now been laid and final testing and commissioning
             is underway.
             - Work at the Bhogat terminal is in the final pre-commissioning stage.
             - Once fully commissioned, we would benefit by adding sea route for
             evacuation of RJ crude oil.

Sales

An average of 179,947 bopd (up from 169,201 bopd last year), amounting to ~66 mmbbls
for the year was sold to PSU and private refiners, across India. Gas sales during the year
were ~7 mmscfd, amounting to total sales of ~2.7 Bscf. During the year, in order to
demonstrate pipeline operations at higher day rate, we have successfully dispatched
~227,000 bbls from MPT; in terms of sales and delivery, achieved a record day delivery
rate of ~ 220,000 bbls through our existing infrastructure.

The average crude price realisation for the year was US$ 95.2/bbl, an implied ~11.5%
discount to Dated Brent

Ravva (Block PKGM-1)

                                Q4     Q4              Q3   q-o-q Year end          y-o-y
        Average Daily                        y-o-y                         Year end
        Production     Units  FY 14  FY 13    (%)    FY 14   (%)   FY 14    FY 13    (%)

        Gross operated Boepd  24,225 27,205  (11%)   27,857 (13%)  27,386   29,161  (6%)
        Oil             Bopd  18,846 20,779   (9%)   21,864 (14%)  21,316   21,849  (2%)
        Gas            Mmscfd   32     39    (18%)     36   (11%)    36       44    (18%)
        Working
        Interest       Boepd  5,451  6,121   (11%)   6,268  (13%)  6,162    6,561   (6%)

Production

Since inception in 1994, the Ravva block has produced more than 261 mmbbls of crude
and over 330 billion cubic feet of gas, more than double the initial resource estimates at
the time the PSC was awarded. During the year, the block produced 27,386 boepd, with a
plant uptime of 99.8%. The asset recorded 3.81 million LTI free man-hours as at end of FY
14. Routine production operations were un-interrupted last year in spite of increased
cyclonic conditions in the Bay of Bengal and local disturbances due to Andhra Pradesh
State bifurcation.

Development

In March 2014, we commenced the 5th phase of Ravva development drilling using a mat
supported jackup rig. This infill drilling campaign, based on the 4D seismic survey,
consists of drilling 7 wells. The first well in the campaign has successfully identified
un-swept oil as predicted by the 4D seismic survey, demonstrating our ability to apply
high end 4D seismic technology. The infill drilling campaigns and prudent reservoir
management is expected to result in the overall recovery factor of over 50%.

Sales

During the year, ~7.5 mmbbls of crude and 13.3 billion scf of gas was sold, averaging
20,466 bopd of crude oil and 36 mmscfd of gas, respectively.

Cambay (Block CB/OS-2)

                               Q4    Q4              Q3   q-o-q Year end Year  y-o-y
        Average Daily                      y-o-y                          end
        Production     Units  FY 14 FY 13   (%)    FY 14   (%)   FY 14   FY 13  (%)

        Gross operated Boepd  9,323 6,215   50%    10,277 (9%)   9,735   6,772  44%
        Oil             Bopd  7,342 4,546   62%    8,246  (11%)  7,747   4,541  71%
        Gas            Mmscfd  12    10     20%      12    0%      12     13   (8%)
        Working
        Interest       Boepd  3,729 2,486   50%    4,111  (9%)   3,894   2,709  44%

Production

Since inception in 2002, the Cambay block has produced about 19 MMbbls of crude and
over 218 billion cubic feet of gas. During the year, the block produced 9,735 boepd, with
a plant uptime of 98.6%. The infill drilling campaign carried out in FY 13 continues to
help sustain production levels. The asset recorded 1.1 million LTI free man-hours as at
end of FY 14.

The sequential production was lower in the quarter on account of planned shut-down for
maintenance.

The block provides an example of optimal asset utilization, with its infrastructure
being used for the tolling and processing ONGC’s gas from its North Tapti field and the
Gas Balancing Agreement with Niko and Gujarat State Petroleum Corporation JV.

Development

For the first time, crude oil from the block was evacuated through a sea route (Hazira
Port) with substantial HSE and operational benefits. In Q4, the first cargo was loaded,
with 211,000 bbls of crude transported to a west coast refinery. This was a milestone
event in the history of the asset.

Sales

During the year, ~2.7 mmbbls of crude and ~4.4 billion scf of gas were sold averaging
7,385 bopd of crude oil and ~12 mmscfd of gas, respectively.

                      Talent and Technology Development

In line with the growth opportunities expected in the future, during the year, our net
talent base increased by over 300 to 1,852. The anticipated resource requirement across
critical and niche areas in technology functions has been bridged. We have acquired key
leadership technical talent for Drilling, Petroleum Engineering, Subsurface and
Exploration. Of our total employee base, over 16% of professionals have global technical
experience of Oil and Gas sector and 7% are specialists in onshore and offshore
exploration activities.

In order to further improve ourselves for best in class practices adopted across
sectors, we have hired talent from diverse sectors other than oil and gas. Younger brigade
forms a good percentage of our current talent pool reflecting vibrancy and offering scope
for innovation. 55 of the new hires are women reflecting Cairn as a committed equal
opportunity employer.

               Health, Safety, Environment and Sustainability

We are committed to meet the highest international standards of HSE and continue to
demonstrate top quartile HSE performance versus our peers.

All our operating assets remain focussed to maintain an excellent safety culture,
recording a continuous LTI-free work performance. LTI frequency rate (Lost Time Incidents
per million man hours) for FY 14 stands at 0.16 which is at the top quartile as per OGP
rankings for 2013.

During the quarter, we undertook several HSE awareness initiatives like National
Safety Week, Road Safety Week, Know Your Hazard campaign across all the sites engaging our
employees, contract personnel and local communities.

                      Corporate Social Responsibility

Cairn India was awarded the prestigious ‘FICCI Corporate Social Responsibility Award -
2013′ under ‘Category: Private Sector Companies with INR 3001 Cr. per annum and above
turnover’ by a jury headed by Mr. M. Damodaran, former chairman of SEBI.

We continue to scale up our existing CSR programs thereby strengthening our
partnership with the state governments and local communities. Some of the major
initiatives till FY 14 include:

        - Installation of RO plants including 'Any Time Water' based service making
          safe drinking water available to over 30,000 community members.
        - Encouraging results from farm based program with production of new types of
          vegetables in the desert with market linkage.
        - Installation of 3,600 solar street lights along the Salaya-Bhogat pipeline,
          benefiting 70,000+ individuals.
        - 19 preventive Mobile Healthcare Vans running in 9 districts of Rajasthan and
          Gujarat.
        - Initiation of specialized training programs at our Cairn Enterprise Center for
          emergency health services and banking to provide employment opportunities to the youth
          including women.
        - Plans to impart advanced vocational training in Jodhpur at Cairn Center of
          Excellence, our flagship CSR initiative..

In addition, we continue to conduct workshops with entrepreneurs and vendors from the
local community to imbibe a culture of safety and quality with the objective of promoting
local content. Three local vendors were recognized in our “3rd Annual Supplier Conference”
held during Q4.

Going forward the plan is to scale up our existing programs to reach each and every
household in our operational area to influence their prosperity.

                                  Outlook

We at Cairn India remain committed to create long term shareholder value. Considering
the significant potential in the Rajasthan asset, we shall continue to focus on key
development projects to enhance recovery with overall planned net capex of US$ 3 Bn by
FY17. We shall target to achieve reserve replacement ratio of 150% in next 3 years subject
to PSC extension till 2030 and a 3 year production CAGR of 7-10% from known discoveries
with flat production in FY15.

Further exploration activity across the portfolio provides additional value upside and
momentum while technology adoption supports low cost operations and development.

Cairn India Limited Fact Sheet

On 9 January, 2007, Cairn India Limited was listed on the Bombay Stock Exchange and
the National Stock Exchange of India. Cairn India is now part of the Vedanta Group, a
globally diversified natural resources group.

Cairn India is headquartered in Gurgaon in the National Capital Region. The Company
has operational offices in India including Andhra Pradesh, Gujarat, Rajasthan, Tamil Nadu
and International offices in Colombo and London.

Cairn India is one of the largest independent oil and gas exploration and production
companies in India. Together with its JV partners, Cairn India accounts for around one
fourth of India’s domestic crude oil production. Average gross operated production was
218,651 boepd in FY 14. The Company sells its oil to major refineries in India and its gas
to both PSU and private buyers.

The Company has a world-class resource base, with interest in seven blocks in India,
one in Sri Lanka and one in South Africa. Cairn India’s resource base is located in four
strategically focused areas namely one block in Rajasthan, two on the west coast of India,
five on the east coast of India (including one in Sri Lanka) and one in South Africa.

The blocks are located in the Barmer Basin, Krishna-Godavari Basin, the Palar-Pennar
Basin, the Cambay Basin, the Mumbai Offshore Basin, the Mannar Basin and Orange Basin.

Cairn India’s focus on India has resulted in a significant number of oil and gas
discoveries. Cairn India made a major oil discovery (Mangala) in Rajasthan in the north
west of India at the beginning of 2004. To date, thirty one discoveries have been made in
the Rajasthan block RJ-ON-90/1 and the exploration and appraisal drilling campaign is
targeting over 3 billion barrels of gross oil in place resources.

In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a PSC signed on 15 May, 1995
comprising of three development areas. DA 1 (1,859 km2) includes discoveries namely
Mangala, Aishwariya, Raageshwari and Saraswati, DA 2 (430 km2), includes the Bhagyam and
Shakti fields and DA 3 (822 km2) comprising of the Kaameshwari West Development Area, is
shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having
exercised their back in right for 30%.

The total resource base supports a long term vision to produce 300,000 boepd, subject
to exploration success, further development investments and regulatory approvals.

In Andhra Pradesh and Gujarat, Cairn India on behalf of its JV partners operates two
processing plants, 11 platforms and more than 200 km of sub-sea pipelines with a
production of over 37,000 boepd as of FY 14.

Block SL-2007-01-001 was awarded to Cairn Lanka in the bid round held in 2008. This
offshore block is located in the Gulf of Mannar. The water depths range from 400 to 1,900
meter. The signing of the Petroleum Resources Agreement (PRA) to explore oil and natural
gas in the Mannar Basin was held in July 2008 in Colombo.

The farm-in agreement was signed with PetroSA on 16 August, 2012 in the ‘Block-I’
located in Orange basin, South Africa. The block covers an area of 19,922 sq km. The
assignment of 60% interest and operatorship has been granted by the South African
regulatory authorities.

India currently imports 3.5* million bopd of crude oil. The current domestic crude oil
production is approximately 0.77** million bopd of which Cairn India operated assets
(Ravva, CB/OS-2 and the RJ-ON-90/1) contributes about 30%.

For further information on Cairn India Limited, kindly visit

http://www.cairnindia.com

*BP Statistical Review of World Energy June 2013

**MoPNG February 2014 production statistics

Corporate Glossary

                     Cairn India Limited
                     and/or its subsidiaries
        Cairn India  as appropriate

        Company      Cairn India Limited

                     Refers to Cairn Lanka
                     (Pvt) Ltd, a wholly
                     owned subsidiary of
        Cairn Lanka  Cairn India

                     PAT adjusted for DD&A,
                     impact of forex
                     fluctuation, MAT credit
        Cash EPS     and deferred tax

                     Cash Flow from
                     Operations includes PAT
                     (excluding other income
                     and exceptional item)
                     prior to non-cash
                     expenses and exploration
        CFFO         costs.

                     Central Processing
        CPT          Terminal

        CY           Calendar Year

                     Declaration of
        DoC          Commerciality

                     Exploration and
        E&P          Production

                     Earnings before
                     Interest, Taxes,
                     Depreciation and
                     Amortisation includes
                     forex gain/loss earned
        EBITDA       as part of operations

        EPS          Earnings Per Share

        FY           Financial Year

        GBA          Gas Balancing Agreement

        GoI          Government of India

        GoSL         Government of Sri Lanka

                     The Company and its
        Group        subsidiaries

        JV           Joint Venture

        MC           Management Committee

                     Ministry of Petroleum
        MoPNG        and Natural Gas

                     New Exploration
        NELP         Licensing Policy

                     Oil and Natural Gas
        ONGC         Corporation Limited

        OC           Operating Committee

                     Petroleum Resources
        PRA          Agreement

                     Petroleum Planning &
        PPAC         Analysis Cell

        qoq          Quarter on Quarter

        SL           Sri Lanka

                     Vedanta Resources plc
        Vedanta      and/or its subsidiaries
        Group        from time to time

        yoy          Year on Year

Technical Glossary

        2P       Proven plus probable
                 Proven plus probable and
        3P       possible
                 Two dimensional/three
        2D/3D/4D dimensional/ time lapse
                 Barrel(s) of oil
        Boe      equivalent
                 Barrels of oil
        Boepd    equivalent per day
        Bopd     Barrels of oil per day
                 Billion standard cubic
        Bscf     feet of gas
        EOR      Enhanced Oil Recovery
        FDP      Field Development Plan
        MDT      Modular Dynamic Tester
                 million barrels of oil
        Mmboe    equivalent
                 million standard cubic
        Mmscfd   feet of gas per day
        Mmt      million metric tonne
                 Petroleum Resources
        PRDS     Development Secretariat
        PSU      Public Sector Utilities
                 Production Sharing
        PSC      Contract

Field Glossary

                     Lower permeability
        Barmer Hill  reservoir which overlies
        Formation    the Fatehgarh
                     Secondary reservoirs in
                     the Guda field and is
                     the reservoir rock
                     encountered in the
        Dharvi       recent Kaameshwari West
        Dungar       discoveries
                     Name given to the
                     primary reservoir rock
                     of the Northern
                     Rajasthan fields of
                     Mangala, Aishwariya and
        Fatehgarh    Bhagyam
                     Located in the Gulf of
                     Mannar, situated on the
                     NE shallow continental
        Mannar Basin shelf of Sri Lanka
                     Mangala, Bhagyam and
        MBA          Aishwariya
                     Youngest reservoirs
                     encountered in the
                     basin. The Thumbli is
                     the primary reservoir
                     for the Raageshwari
        Thumbli      field

Disclaimer

This material contains forward-looking statements regarding Cairn India and its
affiliates, our corporate plans, future financial condition, future results of operations,
future business plans and strategies. All such forward- looking statements are based on
our management’s assumptions and beliefs in the light of information available to them at
this time. These forward-looking statements are by their nature subject to significant
risks and uncertainties; and actual results, performance and achievements may be
materially different from those expressed in such statements. Factors that may cause
actual results, performance or achievements to differ from expectations include, but are
not limited to, regulatory changes, future levels of industry product supply, demand and
pricing, weather and weather related impacts, wars and acts of terrorism, development and
use of technology, acts of competitors and other changes to business conditions. Cairn
India undertakes no obligation to revise any such forward-looking statements to reflect
any changes in Cairn India’s expectations with regard thereto or any change in
circumstances or events after the date hereof. Unless otherwise stated the reserves and
resource numbers within this document represent the views of Cairn India and do not
represent the views of any other party, including the Government of India, the Directorate
General of Hydrocarbons or any of Cairn India’s joint venture partner.

About Sesa Sterlite Limited

Sesa Sterlite Limited (“Sesa Sterlite”) is one of the world’s largest diversified
natural resources companies. Our business primarily involves exploring, extracting and
processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron
ore, aluminium and commercial power and have a presence across India, South Africa,
Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in
emerging markets with over 80% of its revenues from India, China, East Asia, Africa and
the Middle East.

Sustainability is at the core of Sesa Sterlite’s strategy, with a strong focus on
health, safety and environment and on enhancing the lives of local communities.

Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa
Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India
and has ADRs listed on the New York Stock Exchange.

Sesa Sterlite Limited

(Formerly known as Sesa Goa Limited)

Vedanta, 75, Nehru Road,

Vile Parle (East), Mumbai – 400 099

http://www.sesasterlite.com

Registered Office:

Sesa Ghor, 20 EDC Complex,

Patto, Panaji (Goa) – 403 001

CIN: L13209GA1965PLC000044

        Contact Details
        Investor Relations
        Nidhi Aggarwal, Head - Investor Relations
        +91-124-459-3490
        +91-98101-97755
        cilir@cairnindia.com

        Media Relations
        Dr Sunil Bharati, Head, Corporate Affairs & Communications
        +91-124-459-3138
        +91-99104-86055
        cilmedia@cairnindia.com; spokesperson@cairnindia.com

In conjunction with these financial results Cairn India is hosting an Investor
Conference Call today. Details for the live audio webcast and dial in numbers for the call
are available at the Cairn India website (http://www.cairnindia.com).

        Communications

        Roma Balwani
        Executive Vice President - Group Communications & CSR
        Tel: +91-22-6646-1330
        gc@vedanta.co.in

        Investor Relations
        Ashwin Bajaj
        Senior Vice President - Investor Relations
        Tel: +91-22-6646-1531

        Sesasterlite.ir@vedanta.co.in

        Sheetal Khanduja
        Assoc. General Manager - Investor Relations

        Hitesh Dhaddha
        Manager - Investor Relations

    Photo: 

http://photos.prnewswire.com/prnh/20140117/663814

SOURCE Sesa Sterlite Limited


Source: PR Newswire



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