Cairn strikes oil, gas in KG Basin onland block
Cairn India, which is on the verge of being acquired by mining firm Vedanta Resources, today said it has made an oil and gas discovery in an onland KG Basin block.business Updated: Aug 23, 2010 20:00 IST
Cairn India, which is on the verge of being acquired by mining firm Vedanta Resources, on Monday said it has made an oil and gas discovery in an onland KG Basin block.
"Cairn Energy India Pty Ltd, a wholly owned subsidiary of Cairn India Ltd, has notified the Directorate General of Hydrocarbons (DGH) of a discovery of oil and gas in the Nagayalanka-1z well, located in the onshore block KG-ONN-2003/1," the company said in a notice to the stock exchanges.
The block is situated in the Krishna-Godavari Basin and was awarded under the fifth New Exploration Licencing Policy (NELP-V) bidding round. CEIPL, the operator of the block, has a 49 per cent participating interest in the block and state-owned Oil and Natural Gas Corp (ONGC) holds the remaining 51 per cent participating interest.
"The well encountered a 200-metre thick section of tight sandstones with low porosity and permeability," it said, adding that the well flowed 75 barrels per day of oil and 0.27 million cubic feet of gas per day during tests.
"The well and test results are being evaluated to assess the commercial potential of the discovery and to determine the future appraisal programme," it said.
First Published: Aug 23, 2010 19:58 IST