11th Jan 2005 07:00
Cairn Energy PLC11 January 2005 FOR IMMEDIATE RELEASE 11 January 2005 CAIRN ENERGY PLC NEW GAS DISCOVERY AND BLOCK EXTENSION - RAJASTHAN RJ-ON-90/1 Raageshwari-5 Gas Discovery Cairn has made a new gas discovery with the Raageshwari-5 well currentlyoperating 75 km south of Mangala, in the southern part of the Rajasthan Basin. This gas discovery is in a conventional reservoir in the Fategarh formationwhereas the previously encountered Raageshwari gas has been in non-conventionalvolcanic reservoirs. The well, which has been drilled to a depth of around 3,000metres, will be tested once drilling operations are completed. An appraisal well will be required to determine the reservoir extent and size ofthe gas column before a volumetric assessment of the new Raageshwari discoverycan be made. The discovery is encouraging both for establishing larger gas volumes atRaageshwari but also for future exploration elsewhere in the southern part ofthe basin. Bill Gammell, Chief Executive said: "The initial evaluation of this Raageshwari Fategargh gas discovery isencouraging but further evaluation and appraisal work will be required beforeunderstanding its full significance." Block Extension Cairn has also secured a further exploration area, as an extension to itsexisting onshore acreage in Rajasthan in North West of India. The Company has received approval from the Indian Government to explore for oiland gas in a further 856 square kilometres extension of the block to the NorthWest of the recent NV discovery. The extension runs until the middle of May2005. Cairn will immediately conduct a seismic survey and drilling in the area once ithas received all the necessary permissions from the Rajasthan State Government. Bill Gammell, Chief Executive said: "We are pleased to have received approval for the extension." Enquiries: Cairn Energy PLC Analysts Bill Gammell, Chief Executive Tel: 0131 475 3000Dr Mike Watts, Exploration and New Business Director Tel: 0131 475 3000Kevin Hart, Finance Director Tel: 0131 475 3000 JournalistsDavid Nisbet, Head of Group Communications Tel: 0131 475 3000---------------------------------------- ---------------- Brunswick Group LLP Patrick Handley/Mark Antelme Tel: 0207 404 5959 Notes to Editors: •A series of shallow oil accumulations, Guda, GR-F, Raageshwari oil and a deep gas field at Raageshwari, contained in non-conventional volcanic reservoir, have previously been encountered on the Central Basin High. The Raageshwari-5 well is the first well to be drilled on the flank of the Raageshwari gas field and is being drilled for dual objectives. The first of which is the appraisal of the gas in the volcanics and the second is for the exploration of conventional sands in the Fatehgarh formation. •The Raageshwari-5 deviated well has encountered 39m (27m true vertical) of net gas pay in good quality sands of the Fatehgarh formation at around 3,000m, above the volcanics. The Fatehgarh section has been cased off and the well will now be deepened by 500 or 600m. It is the intention to then conduct a short test in the deeper volcanics before carrying out an extended well test in the Fatehgarh sands to assess reservoir quality, deliverability and reservoir continuity. A further update will follow in due course. •The Fatehgarh section encountered in Raageshwari-5 is similar, although thinner, to that seen in Saraswati-2 and the Mangala wells. It has, however, been more deeply buried and hence sand porosities are in the 15% rather than 25% range. •Cairn focuses on the geographic region of South Asia, where the Group holds material exploration and production positions in both west and east India and in Bangladesh along with new exploration rights in Northern India and Nepal. •This focus on South Asia has already resulted in a number of oil and gas discoveries. In particular, the company made a significant oil discovery (Mangala) in Rajasthan in the North West of India at the beginning of 2004. • Cairn has received formal approval from the Government of India for a Declaration of Commerciality in respect of the Mangala, Aishwariya, Saraswati and Raageshwari discoveries. The approval secures Cairn an extensive Development Area of 1,858 square kilometres which also incorporates the as yet, un-appraised, GR-F, Kameshwari, N-R and Guda discoveries. • The Development Area is retained until 2020 with options for further extension subject to mutual agreement with the Government of India. •The Development Area is the equivalent to the size of 12 North Sea Blocks. •The Mangala and Aishwariya (formerly N-A field) fields are currently scheduled to start production in the final quarter of 2007. Plateau rates are currently targeted at between 80,000 and 100,000 barrels per day. •India currently imports 2 million barrels of oil a day. It produces 650,000 barrels a day itself of which 50,000 comes from the Cairn operated Ravva field. •"Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries, as appropriate There are matters discussed in this media information that are forward lookingstatements. Such statements are only predictions and actual events or resultsmay differ materially. For a discussion of important factors -which could causeactual results to differ from the forward looking statements, refer to theCompany's annual report and accounts for the year ended 2003. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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