Cairn Doubles Success

Cairn has completed the second of two planned oil drill stem tests on the LA-2 gas development well on Block CB-OS/2 in the Gulf of Khambat, offshore Western India.

The second DST (testing an interval from 1382 to 1388 meters) flowed at a stabilized rate of 5250 barrels per day (bopd), 44.5 degrees API oil at a flowing wellhead pressure of 511 psi on a 64/64' choke and with a gas oil ratio (GOR) of 397 scf/stg. This flow rate was constrained by the surface test limitations. As previously reported, the first DST (testing an interval from 1411 to 1420 meters) flowed at a stabilized rate of 5196 bopd. The Lakshmi gas development project is on schedule to produce first gas in August 2002.

Bill Gammell, Chief Executive, commented: 'We are delighted to have discovered oil below the main gas reservoirs which are the subject of a separate development. These extremely encouraging oil flow rates demonstrate the high potential reservoir deliverability, although further appraisal is required to determine the reserve potential. We are currently reviewing an accelerated appraisal program for this discovery, which follows the previous three oil discoveries made by Cairn on the same block last year. In light of this result, we are reassessing the total oil potential on the block.'