buy cairn india with target of 850 in two years

the company is engaged in production of crude oil . the company production is going to increase by 6 times by the begining of 2010 . the output of its rajasthan oil field is around 175000 barrel per day .it will supply 20% of crude consumption of india . as the average crude price projected by 2010 will be 175$ .the company will be reaping huge profits within years to come .

the company posted excellent results for this quater




Rajasthan Upstream development underway and on track for first commercial production H2 2009


Larsen and Toubro Limited (L&T) has started construction in Gujarat of the export crude oil insulated pipeline, gas pipeline and associated facilities from Barmer, Rajasthan to the Gujarat coast


Rigs secured for development and exploration drilling in H2 2008


New acreage in Sri Lanka


Bids submitted for NELP VII acreage in India

FINANCIAL
The gross production of the operating units was 71,082 boepd (barrels of oil equivalent per day) in Q2 2008 (77,392 boepd in Q2 2007) and the working interest production was 18,764 boepd in Q2 2008 (19,775 boepd in Q2 2007).

“Cash flow from operations”, worked out as profit after tax prior to non-cash expenses (non-cash employee cost, depreciation, depletion, amortisation and deferred tax) and exploration cost, was Rupees (Rs). 2,780 million (US$ 66.7 million) for Q2 2008 as compared with Rs. 2,234 million (US$ 54.1 million) for Q2 2007. Cash (net of borrowings) available as at 30 June 2008 was Rs. 35,287 million (US$ 822.7 million).

The consolidated revenue of Cairn India Limited and its subsidiaries for Q2 2008 was Rs. 4,036 million (US$ 96.9 million) as compared with Rs. 2,433 million (US$ 59 million) for Q2 2007.
The average oil price realisation in Q2 2008 was US$ 125.9/bbl and for Q2 2007 was US $ 69.6/bbl. The gas price realisation in Q2 2008 was US$ 4.3 /mscf and for Q2 2007 was 4.3/mscf.

Average price realisation per boe was US$ 95.2 in Q2 2008 and for Q2 2007 was US$ 50.4.
The consolidated Profit before tax for Q2 2008 was Rs.2,196 million (US$ 52.7 million) as compared with a loss of Rs. 312 million (US$ 7.6 million) for Q2 2007. The consolidated Profit after provision for tax (including deferred tax and FBT) for Q2 2008 was Rs.1,385.8 million (US$ 33.3 million) as compared with a loss of Rs. 714.4 million (US$ 17.3 million) for Q2 2007.