Cairn Energy has made a third hydrocarbon discovery on Block CB-OS/2 offshore Gujarat in Western India with its exploration well CB-B-1, located approximately 6 kilometers south east of the Lakshmi gas discovery. The well reached a total depth of 1,286 meters and encountered several hydrocarbon pay zones below 753 meters.
Two zones (DST-2 and DST-3) tested and flowed gas at a cumulative rate of 39.2 million standard cubic feet of gas per day ('mmscfd'). A third zone (DST-1) flowed oil at a stabilized rate of 1,039 barrels of oil per day on a 32/64' choke. The oil test was constrained by surface test equipment limitations.
A 3D seismic survey over the Lakshmi and Ambe discoveries is expected to commence on January 19, 2001 and will be extended to cover the Gauri discovery (formerly Prospect “B”). An appraisal program on the discovery is planned in the first half of 2001. Initial gross reserve estimates for the discovery are between 100 and 300 billion cubic feet of gas equivalent. The Gauri discovery lies on trend with and to the south west of the producing Hazira Field.
Future development options for the discovery are being considered, however conceptually, the field could be developed as a stand alone field or tied back as a satellite development to either Lakshmi or Hazira.
On Prospect 'G' - Block CB-OS/2, the CB-G-1 exploration well is currently operating at a depth of 400 meters.
On Prospect 'N', Block KG-DWN-98/2, the deep water drill ship, Energy Searcher, is currently running anchors on location in the north east section of the block located in the Krishna-Godavari Basin offshore Eastern India. An exploration well on prospect 'N' is expected to spud in the next few days following an initial pilot hole. Cairn holds a 100% equity interest in Block KG-DWN-98/2. In the event of a discovery ONGC has no back-in right as the Block falls under the terms of India's New Exploration Licensing Policy ('NELP').
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