Cairn Makes Discovery in Rajasthan

Cairn has made a second significant oil discovery in Rajasthan in India with the N-A-1 exploration well. N-A-1 reached a total depth of 1,634 meters and is located 8 kilometers south-east of N-B-1 and 52 kilometers north-northwest of Saraswati.

The well encountered a gross oil column of 120 meters and 15 meters of net pay in excellent quality sands of the Fatehgarh formation. The number of Fatehgarh sands encountered is significantly less than in the N-B-1 (Mangala) discovery.

An open hole test program in the Fatehgarh section has commenced. The first of two zones to be tested has flowed 1,225 barrels of oil per day on 64/64-inch choke. The tested oil has a specific gravity of approximately 31 degrees API.

The preliminary estimates of oil in place for the N-A-1 discovery range from 130 to 470 million barrels, with preliminary recoverable reserves estimated to be in the 20 to 80 million barrels range.

The N-A-1 well also encountered a log evaluated oil bearing column of 60 to 150 meters in an apparently tight, silty Barmer Hill formation. The Barmer Hill section is a possible future candidate for further evaluation and fracture stimulation.

The current drilling program is now being reviewed to allow early appraisal drilling of the N-A-1 discovery to assess reservoir distribution.

Bill Gammell, Chief Executive, commented: "Whilst additional evaluation and appraisal is required I am confident that this discovery will add further material value to Cairn's portfolio."
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