Reliance Finds Gas Again in KG Basin Block

NEW DELHI, Jan 14, 2008 (Dow Jones Newswires)

Reliance Industries Ltd. (500325.BY), India's most valuable company by market capitalization, Monday said it struck gas for the third time in a shallow water block in the Krishna Godavari basin, off the country's east coast.

Reliance also discovered the country's largest gas field in a deepwater block in the KG basin in 2002, which is expected to start producing about 40 million standard cubic meter of gas a day from the second half of this calendar year.

The shallow water block KG-OSN-2001/1 (KG-III-05) in the Krishna Basin, with an area of 1,100 square kilometers, was awarded to Reliance in the third round of bidding under the new exploration licensing policy, a company statement said.

The company has informed the upstream regulator - director general of Hydrocarbons - about the discovery and is currently evaluating its commercial prospects, it said.

Reliance Industries holds 100% participating interest in this block, the statement said.

In November, the company reported its second gas discovery in the same shallow-water block KG-OSN-2001/1. In September 2006 the company informed the DGH that it found gas in the block.

"This discovery (the latest) further substantiates the hydrocarbon potential in this block," the statement said.

NEW DELHI, Jan 14, 2008 (Dow Jones Newswires)