New Delhi:

Cairn India today said it has made an oil discovery in a Krishna Godavari basin block, the second find in the onland block.

“Cairn Energy India Pty Ltd, wholly-owned subsidiary of  Cairn-India Ltd has notified the Management Committee of an oil discovery in the Nagayalanka-SE-1 well, in the onshore block KG-ONN-2003/1, in the Krishna-Godavari Basin on the east coast of India,” the company said in a statement issued here.

CEIL is the operator of the block with 24 per cent stake while Cairn India holds 25 per cent. The remaining 51 per cent is with state-owned Oil and Natural Gas Corp (ONGC).

Management Committee is an oversight committee comprising representatives of upstream regulator Directorate General of Hydrocarbons and the Petroleum Ministry besides the three partners.

Without giving reserves the discovery may hold, Cairn said a gross 57-meter hydrocarbon column was tested as oil bearing. It flowed 70 barrels per day of oil and 0.6 million standard cubic feet per day of gas during testing.

“Further appraisal will be required to establish the commerciality of the Nagayalanka-SE discovery,” the statement said.

Nagayalanka-SE is the second find in the KG-ONN-2003/1 Block. The Nagayalanka SE-1 well was spud on November 25, 2011 as an exploration well, to test the hydrocarbon potential of Cretaceous Golapalli sands.

The extended second phase of exploration for the block ends on August 7 this year, it said adding the minimum work committed for the second phase has already been completed.

source: http://www.Economictimes.Indiatimes.com / ET Home> News> News by Industry> Energy / April 03rd, 2012