ONGC Plugs, Abandons India Well

Block operator The Oil and Natural Gas Company of India Ltd (ONGC) has informed Rocksource that the third exploration well in Block CY-DWN-2001/1 has now reached Total Depth (TD) without encountering hydrocarbons, and will now be permanently plugged and abandoned.

As previously advised, the well did not test the prospect associated with the primary positive electromagnetic (CSEM) anomaly, as interpreted by Rocksource.

As previously described, Rocksource has not signed the Production Sharing Contract and is hence not formally a block member. Rocksource is continuing its commercial discussions with operator ONGC. The aim is to find a mutually acceptable way forward to drill the CSEM positive prospect identified by Rocksource. However, it remains the Company's view that unless there is a successful outcome from these discussions, Rocksource will not be liable for any costs on the block.

Rocksource has a 2011 drilling schedule of five sanctioned wells, which will test 200 million barrels of net risked resource potential. The first of these is expected to spud in April.