Reliance Industries Makes Two Significant Discoveries

Reliance Industries has made two new discoveries, one in deepwater off the east coast and another in the shallow waters off the west coast of India. These are in the well KG-D6-R1 in block KG DWN 98/3 (KG D6), and in the well GS01 B1 in block GS-OSN-2000/1 (GS01).

The Company has successfully completed drilling of it's fiftieth exploratory well KG-D6-R1. This well is the twenty-third exploratory well drilled in block KG DWN 98/3(KG D6). The well is located at a water depth of 2010 meters, which is the deepest location to be drilled to date in this block. The well was drilled to a total depth of 4860 meters. The well encountered two gas-bearing zones and the data obtained from logging & Modular Dynamic Testing (MDT) confirmed the presence of hydrocarbons in the Mio-Pliocene intervals. This well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 34, which is the 18th discovery in this block. This opens up new areas in the deeper stratigraphic levels in the block.

This Block was awarded to the consortium of the Company (90%) and NIKO (10%) under the NELP I round of bidding. Currently, the JV is developing India's first Deep Water Gas production facility for the Dhirubhai 1 and 3 fields targeting first gas in the second half of 2008.

In addition to the above discovery, the Company is pleased to announce a discovery in the well GS01 B1 in block GS-OSN-2000/1, off the west coast in Gujarat - Saurashtra basin of India. This is a significant discovery for Reliance in the West Coast carbonate regime. The well GS01 B1 is the fifty-first exploratory well drilled by Reliance and was drilled at a water depth of 78 meters and to a total depth of 2282 meters. Formation evaluation including the Modular Dynamic Testing confirmed the presence of hydrocarbon in Mid-Miocene carbonate reservoir. In this zone, DST was carried out subsequently which flowed 18.6 million standard cubic feet of gas with 415 barrels of condensate per day through 56/64" choke with a flowing tubing pressure of 1346 psi. This well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 33, which is the Company's first discovery in carbonate reservoirs in the West coast.

This shallow water block was awarded to the consortium of the Company (90%) and Hardy Exploration (10%) under the NELP II round of bidding.

The commerciality of the above discoveries is currently under evaluation. These recent discoveries demonstrate the further upside potential of the blocks in the Krishna Godavari and opens up a new corridor in Gujarat - Saurashtra basin for future exploration.

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