10th May 2007 07:01
Cairn Energy PLC10 May 2007 Embargoed for Release 07:00 10 May 2007 The following release was issued today by Cairn India to the Bombay StockExchange and the National Stock Exchange of India: "Rajasthan Block Northern Appraisal Area Extension, Discoveries and Further Drilling Plans The Government of India (GoI) has awarded Cairn India a six month extension tothe Exploration Phase of the Northern Appraisal Area (NAA) of the Rajasthanlicence RJ-ON-90/1 in North West India from May 2007. The granting of the extension will allow Cairn India to carry out an appraisalprogramme to delineate and explore the full potential of the Northern AppraisalArea (NAA), which covers an area of 879 square kilometres (km2). Thesediscoveries have opened up a new play in the lower Dharvi Dungar sands on thewestern margin of the Rajasthan basin. - The Kameshwari West-2 discovery is located 12 km north west of the 2003Kameshwari discovery and 56 km south of the Mangala field. The well encountered18.2 metres (m) of net pay in the lower Dharvi Dungar formation from a grossinterval of 40 m. From formation pressure data a gas gradient and an oilgradient have been defined in the well. A Gas Oil Contact (GOC) at 1227.5 mMDBRT (1127 m TVDSS) and an Oil Water Contact (OWC) at 1247.7 m MDBRT (1147 mTVDSS) have been confirmed. - Open Hole Drill Stem Testing (OHDST) has been carried out and the wellwas flowed for approximately 7 hours at an average liquid rate of 450 barrels ofliquid per day and 0.06 mmscfd on a 32/64" choke with a water cut of 50%. Theoil API is 33 degrees. - The Kameshwari West-3 discovery is located 10.6 km to the north ofKameshwari West-2 and encountered up to 16 m of gas pay in tight lower DharviDungar reservoir rock in a potential column of over 100 m. The well TD is 1499m MD. Two DSTs were conducted and test results in the upper interval confirmedthe presence of a gas pool which flowed at approximately 75,000 scfd. The deepertest of the potential oil accumulation remains inconclusive due to the tightnature of the reservoir rock. The area is covered by 350 km2 of 3D seismic data acquired in 2006. Furtheroperations will re-commence in the NAA with exploration well Kameshwari West'M'. In June 2005, Cairn was granted an 18 month extension (until 14 November 2006)to complete its activities in the northern appraisal area to the north and westof the Development Area. However, the work programme in this area wasinterrupted by the severe flooding in Rajasthan in 2006. Cairn India ceasedoperations in this area and entered discussions with the GoI for a furtherextension of part of this acreage to complete its planned work programme. Rahul Dhir, Chief Executive Officer of Cairn India said "Cairn India is delighted to have secured this extension in order to furtherevaluate the potential of this area. The two discoveries confirm our belief thatthe Rajasthan basin is world class and will continue to add incremental value."" Enquiries to: Analysts/InvestorsSir Bill Gammell, Chief Executive Tel: 0131 475 3000 MediaBrunswick Group LLP Tel: 0207 404 5959Patrick Handley, Mark Antelme, Phoebe Buckland Cairn India Media EnquiriesDavid Nisbet Tel: +91 99 1048 7715 About Cairn India Limited - "Cairn India" where referred to in the release means Cairn India Limited and/or its subsidiaries, as appropriate - "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India), as appropriate. - Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan. - On 9 January 2007, Cairn successfully concluded the flotation of its Indian business with the commencement of trading of Cairn India Limited on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLC currently holds a majority shareholding in Cairn India Limited. - Cairn India is currently focused on exploration and production in India where it has a working interest in 15 blocks, two of which are producing hydrocarbons. The company holds material exploration and production positions in west India, east India along with new exploration rights elsewhere in India. - This focus on India has already resulted in a significant number of oil and gas discoveries. In particular, Cairn India made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. Cairn India has now made 22 discoveries in Rajasthan block RJ-ON-90/1. - In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production Sharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858 km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having exercised their back in right for 30%. A further Development Area (430 km2), including the Bhagyam and Shakti fields, is also shared between Cairn India and ONGC in the same proportion. Cairn India has a 100% interest in the Northern Appraisal Area. - India currently imports approximately 2,000,000 barrels of oil per day (bopd). It produces approximately 700,000 bopd itself of which approximately 50,000 bopd comes from the Cairn India operated Ravva field on the east coast of India - For further information on Cairn India Limited see www.cairnindia.com Technical 2P proven plus probable 3P proven plus probable and possible 2D/3D two dimensional/three dimensional boe barrel(s) of oil equivalent boepd barrels of oil equivalent per day bopd barrels of oil per day bscf billion standard cubic feet of gas EOR enhanced oil recovery FDP field development plan MDBRT measured depth below rig table mmboe million barrels of oil equivalent mmscfd million standard cubic feet of gas per day PSC production sharing contract TVDSS Total vertical depth sub sea The Fatehgarh is the name given to the primary reservoir rock of the NorthernRajasthan fields of Mangala, Aishwariya and Bhagyam. The Barmer Hill is a lower permeability tight rock which overlies the Fatehgarh. The Dharvi Dungar forms the secondary reservoirs in the Guda field and is thereservoir rock encountered in the recent Kameshwari West discoveries. The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbliis the primary reservoir for the Raageshwari field. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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