Cairn's Prospect Q Plugged & Abandoned

Cairn announces that the Prospect 'Q' exploration well on Block KG-DWN-98/2 has been plugged and abandoned after reaching a total depth of 2772 meters.

The well, which was not tested, encountered shallow reservoirs with seven meters of net hydrocarbon pay. Initial interpretation suggests some of these reservoirs thicken laterally. Other deeper and thicker reservoir sands encountered were water bearing.

The first phase of exploration drilling on Block KG-DWN-98/2 is now complete and the drilling rig is being released. All of the results of the drilling program in the Krishna Godavari Basin, which include the 'N' and Annapurna gas discoveries and the 'P' and 'M' oil discoveries, will now be calibrated with the existing 3D seismic, and fully evaluated prior to any further exploration and appraisal drilling.

Bill Gammell, Chief Executive, commented: 'The drilling of this well brings to an end a very successful initial exploration program. We have now established a net reserve potential of atleast 200 million barrels of oil equivalent and are proceeding with initial conceptual development and gas marketing studies.'