Cairn Energy confirmed a strong financial position as it prepares to carry out work in the North Sea.

Group cash for the year so far has tallied up to $953million. The firm also confirmed it was fully funded to a free cash flow for the next two years.

The firm’s Catcher and Kraken developments in the UK North Sea are poised for first oil in 2016 and 2017, according to the firm.

Elsewhere, the first of two planned exploration wells offshore in Senegal have discovered oil and drilling of the second well is now taking place.

Simon Thomson, chief executive officer, of Cairn Energy, said: “Cairn remains focused on maximising value for shareholders from disciplined capital allocation across a balanced asset base.

“Operations are now underway on our second well in Senegal after oil was discovered in the basin opening FAN-1 well.

“We have a large acreage position and are in the process of evaluating the initial well information and determining potential follow up activity which we are currently targeting for 2015.

“The company continues its efforts to seek resolution of the tax issue in India.”