Mukesh Ambani-led Reliance Industries Ltd (RIL) has encountered gas in the first exploration well that it spud in in more than five years on the flagging natural gas fields in KG-D6 block.
The MJ-1 exploration well on the Dhirubhai-1 and 3 gas fields in the KG-DWN-98/3 or KG-D6 block has sniffed natural gas while drilling, sources privy to the development said.
While drilling is not complete, sources privy to the development said the gas find could supplement falling gas output with new reserves in the KG-D6 gas fields. The company will decide on testing the natural gas found, once the well reaches target depth by this weekend, they added.
The well is being drilled over 2 km deeper than, and directly beneath, the producing D1&D3 fields in the block.
Sources said the resource found may be significantly more than RIL's pre-drill best case gross prospective resource of 819 billion cubic feet of gas and 56 million barrels of liquids for the well.
The well is targeting a Mesozoic synrift clastic reservoir, similar to the producing MA oil and gas field in the same block.
RIL had drilled MJ-1 well in early March after the government permitted companies to drill exploration wells in areas where exploration period had long expired.
Dhirubhai-1 and 3 (D1&D3) gas fields, the largest among the 18 gas finds on KG-D6 block, have proved to be more difficult to produce than previously predicted. RIL has drilled the probe well on the fields to study reservoir characteristic, sources said.
D1&D3 reservoir has seen sharper-than-expected drop in pressure and water and sand ingress in production wells, leading to a drop in output.
The fields have seen output fall from 53-54 million cubic metre per day achieved in March, 2010 to about 12 mscmd this month. Together with less than 6 mscmd output from MA oilfield in the same block, KG-D6 is producing about 17 mscmd.
(With agency inputs)