Cairn Makes Significant Oil Discovery in Rajasthan

The N-B-1 exploration well, which is currently operating in the onshore northern Rajasthan Basin in India, has made a significant oil discovery in a large simple structure at shallow depths.

The well, located 60 kilometers north of Saraswati, is presently at a depth of 1,250 meters and has not yet reached the planned total depth. An intermediate log has been run and evaluated and fluid samples of 24 degree API oil have been recovered from the Fatehgarh.

The well has encountered two separate reservoir sections:

Barmer Hill Reservoir
The well has intersected a log evaluated gross oil column of 136 meters in silty sands from the Barmer Hill formation. The net pay is estimated to be 22 meters with an average porosity of 21%.

Fatehgarh Reservoir
The well has intersected a log evaluated gross column of 185 meters in excellent high quality Fatehgarh sands. The net pay is estimated to be 85 meters with an average porosity of 25%. An oil-water contact has been established in the Fatehgarh.

Planned Testing
Once the well has reached total depth a test program is planned to confirm reservoir deliverability, after which further announcements will be made.

Initial Oil in Place and Reserve Estimates
The initial estimates for the oil in place of this discovery range from 450 to 1,100 million barrels. Preliminary reserve estimates are in the 50 to 200 million barrel range.

Forward Appraisal and Exploration Program
The current drilling program is now being reviewed to allow early appraisal drilling of the N-B-1 discovery and continued exploration drilling of several similar prospects in the vicinity.

Bill Gammell, Chief Executive, commented: "While further evaluation and appraisal is required I am confident that this discovery in isolation has the potential to transform the value of Cairn's portfolio."