THE chief executive of Cairn Energy has said the firm's exploration success in Senegal could be a company maker while its hefty investment in the North Sea will pay off in spite of the oil price fall.

Noting estimates the two finds that Edinburgh-based Cairn made off Senegal last year contain a billion barrels oil, Simon Thomson said the discoveries could pave the way for the company to develop a major new producing area.

"We believe we have opened up a new world class basin play," Mr Thomson told the company's general meeting.

"It's material for us, it's material for our partners so I think from our perspective it has the potential to be a real company maker," he added after the event.

Mr Thomson said the fact Cairn plans to start appraisal drilling this year to help firm up estimates of one of the finds underlined the company's faith in the potential of its Senegal position. Further exploration wells are in prospect.

He described the West African country as an attractive place to operate with a stable democracy and good infrastructure and said Cairn won its acreage on attractive terms.

While many firms are grappling with the effect of the slump in the crude price, Mr Thomson believes Cairn can use its strong balance sheet to take advantage of the fallout from the change, in Senegal and elsewhere.

"We can be counter-cyclical. Provided you have funding in place this is undoubtedly a more attractive time to explore than a year ago in terms of costs. Deep water rig rates are down 40 per cent, contractor rates are down," said Mr Thomson.

He noted that Cairn expects to be generating significant cash from the Kraken and Catcher fields in the North Sea from 2017.

Cairn acquired interests in these under the plan Mr Thomson developed to build a portfolio that combined potentially transformational work in under-explored areas like Senegal with less risky activity in the North Sea. He succeeded Cairn's founder Sir Bill Gammell as chief executive in 2011.

Asked if the crude price fall had reduced the appeal of the North Sea purchases, Mr Thomson said: "Both Kraken and Catcher are attractive fields at the front end of their lives; both are on schedule and on budget. The reasons why we invested in them in the first place still stand at current prices."

He said Cairn could buy more North Sea assets but added: "Right now we've got a very attractive proposition in our portfolio so that's what we want to focus on."

Mr Thomson said Cairn was disappointed to find itself subject to a $1.6bn (£1bn) tax claim by the authorities in India, where it made bumper finds under Sir Bill.

Cairn insists it has paid all taxes due but has been blocked from selling its remaining $700m holding in its former subsidiary in India by the government.

"It's frustrating when there is something that's of value to shareholders that is then taken away from you and you can't access," said Mr Thomson.

However, predicting the matter will eventually be resolved, Mr Thomson said Cairn had acted to ensure it still had the financial strength to fund an active programme.

The company axed the jobs of around 90 employees and contractors last year under a reorganisation programme.

Mr Thomson made no mention at the meeting of Greenland, where Cairn has spent one billion dollars drilling without making a commercial find.

Speaking afterwards he said Cairn remains excited about the potential of the Pitu block. It has continued technical work in the area but will not drill there without bringing in a partner.

Cairn's directors' remuneration was approved by 98.59 per cent of votes cast at the general meeting.

The annual report and accounts was approved by 99.93 per cent of votes cast.