Cairn Makes New Gas Discovery on Rajasthan Block

Cairn has made a new gas discovery with the Raageshwari-5 well currently operating 75 km south of Mangala, in the southern part of the Rajasthan Basin.

This gas discovery is in a conventional reservoir in the Fategarh formation whereas the previously encountered Raageshwari gas has been in non-conventional volcanic reservoirs. The well, which has been drilled to a depth of around 3,000 meters, will be tested once drilling operations are completed.

An appraisal well will be required to determine the reservoir extent and size of the gas column before a volumetric assessment of the new Raageshwari discovery can be made.

The discovery is encouraging both for establishing larger gas volumes at Raageshwari but also for future exploration elsewhere in the southern part of the basin.

Bill Gammell, Chief Executive said:
"The initial evaluation of this Raageshwari Fategargh gas discovery is encouraging but further evaluation and appraisal work will be required before understanding its full significance."

Cairn has also secured a further exploration area, as an extension to its existing onshore acreage in Rajasthan in North West of India.

The Company has received approval from the Indian Government to explore for oil and gas in a further 856 square kilometers extension of the block to the North West of the recent NV discovery. The extension runs until the middle of May 2005.

Cairn will immediately conduct a seismic survey and drilling in the area once it has received all the necessary permissions from the Rajasthan State Government.