ONGC Videsh Strikes Gas in Second Well Offshore Myanmar

ONGC Videsh Limited has announced gas in the first appraisal well in the Shwe gas field in Block A-1, Myanmar, 7.8 kilometers away from the first exploratory well, where the Consortium discovered gas in January last year.

The Consortium consists of OVL with 20% share, Daewoo (the Operator) with 60% share & GAIL and KOGAS with 10% shares each.

The appraisal well was spudded in mid-November, penetrated the expected gas reservoirs. The main Gas Horizon G5 was proved to be a much better reservoir showing good reservoir characteristics.

Mr. Subir Raha, Chairman of OVL, said that this success has enhanced the possibility of commercial development of the gas field significantly and OVL is quite confident of the commercial success.

Mr. Raha said that the Consortium will drill a few more appraisal wells in the first half of 2005 to have a better definition of the reservoir limit, parameters and have a better estimate and confirm commerciality of the Shwe gas field.

The Consortium will also drill additional exploratory and appraisal wells at the Shwe Phyu and Ngwe prospects simultaneously using one more rig from late January 2005 to assess the hydrocarbon potential of Block A-1.