Cairn Energy Makes Another Discovery Offshore India

Cairn has made a third hydrocarbon discovery on Block KG-DWN-98/2 offshore Andhra Pradesh in Eastern India with its exploration well DWN-P-1 drilled by Marine Drilling’s semisubmersible, Marine 500. The well is located in 1617 feet of water approximately 7 miles northwest of the 'R' gas discovery. DWN-P-1 reached a total depth of 8,480 feet and encountered two hydrocarbon bearing units. The first unit comprised a gas cap with a thin oil leg and the deeper second unit comprised a thin gas column with an estimated oil column of 246 feet. The reservoirs are predominantly thinly laminated sands and further appraisal will be required. Preparations for a testing program have commenced on the discovery, the results of which will be announced in due course.

Drilling operations on prospect '6' have been terminated following several failed attempts to continue drilling after encountering a shallow gasreservoir at 1968 feet and water flows from sands just below the seabed. The Energy Searcher drill ship is currently being demobilized and it is anticipated that exploration drilling will recommence on prospect '6' in 2002 with a special top hole casing design and a more specialized drilling rig.

The Aban II rig is jacked up in the outer anchorage of Kakinada port undergoing final inspections before commencing the Ravva development drilling program which is scheduled to commence in August 2001. The drilling program, which comprises three new development wells, two workovers and the tie-back and completion of a prior discovery well, is expected to be completed during the first quarter of 2002.