Mercator Petroleum Discovers Oil at Jyoti-1 Well in Cambay Basin in Gujarat

Mercator Ltd., a diversified conglomerate with interests in coal, oil and gas, commodity transportation and dredging, announced that its subsidiary Mercator Petroleum Ltd. has made its first oil discovery at the Jyoti-1 well in its 100 percent-operated Block CN-ONN-2005/9 in the Cambay Basin, Gujarat, India.

The Jyoti-1 exploration well -- the very first well drilled by Mercator Petroleum -- was drilled to a depth of 9,632 feet (2,936 meters) and penetrated multiple oil and gas shows.

The company said the zone in the interval 8,448 to 8,464 feet (2,575 to 2,580 meters) was perforated and flowed oil at the rate of 830 barrels of oil per day (bopd) through 32/64 inch choke size. The oil is light with 41 degree API and India's Directorate General of Hydrocarbons (DGH) has been informed about the discovery.

"The discovery in the very first exploration well speaks volumes for the capability of our team. This discovery pertains to a very good quality Miocene age clastic reservoir with permeability of more than 500 millidarcy. A substantial amount of new geological data was obtained from the well which will be further evaluated and integrated and a conclusion on the resource base of the field will be made. The discovery opens up a large corridor of possible hydrocarbon accumulation in the area," Dr. Rabi Bastia, Mercator Petroleum's president-Exploration & Production, commented on the Jyoti-1 discovery in a press release Tuesday.

Apart from the 51 square miles (132.22 square kilometers) Block CN-ONN-2005/9, Mercator Petroleum -- an exploration and production focused firm -- has 100 percent interest in the 18.5 square miles (48 square kilometers) Block CN-ONN-2005/3 in the Cambay Basin, Gujarat. The firm is currently progressing the processing and interpretation of 2D and 3D seismic data acquired in Block CN-ONN-2005/3.

Mercator Petroleum signed the Production Sharing Contracts (PSCs) with the Indian government for the two exploration blocks under the Seventh New Exploration Licensing Policy round (NELP-VII) in December 2008.

The company also has interests in overseas exploration blocks, holding a 25 percent stake each in shallow water Blocks M4 and YEB in the Moattama Basin and Thanintharyi Basin, respecitvely, offshore Myanmar. Mercator Petroleum is part of an India-led consortium headed by operator Oil India Ltd. and Oilmax Energy Pvt. Ltd. and joined by local partner Myanmar's Oil Star Management Services.

These two blocks were awarded by offered by Myanmar's Ministry of Energy under the country's Offshore Bidding Round - 2013 in March 2014, with the PSCs signed with the Myanma Oil and Gas Enterprise (MOGE) in early December 2014.


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