Cairn bold going forward but hurt so far

Cairn Energy said Tuesday its development projects are funded through 2017 but cutting administrative costs means a reduction in its work force.

Scottish energy company Cairn said in a report on earnings during the first half of 2014 it racked up $80 million in costs related to unsuccessful exploration campaigns off the coast of Morocco, in the North Sea and elsewhere. Net losses through the end of June were reported at $62.1 million.

"Controlling administrative cost levels is a continuing priority and Cairn is currently re-organizing the group to ensure staffing levels are appropriate for the future work program," the company said in its fiscal report.

The company said it plans three wells in the Norwegian and British waters of the North Sea and in the Barents Sea during the next 12 months. It's planning to buy additional acreage in the arctic waters off the coast of Norway and views Greenland as an encouraging prospect.

Cairn has invested heavily in exploration off the coast of Greenland without much success. The company said parts of the region may hold gross prospective reserves of more than 3 billion barrels of oil equivalent, but said it may sell off some of its interests to minimize capital expenses at what it said were high risk frontier holdings.