Cairn Makes Discovery with Rajasthan Well

Cairn has completed the successful testing of its exploration well RJ-E-1 in block RJ-ON-90/1, Rajasthan. The well, which was drilled to a total depth of 3,476 meters, encountered four potentially hydrocarbon bearing intervals of which three were subsequently tested

Interval 1
Test 1 produced gas from a gross volcanic interval between 2,870 and 3,050 meters. The zone flowed gas at a rate of 2.2 million standard cubic feet of gas per day.

Interval 2
Test 2 and Test 3 perforated a series of interpreted hydrocarbon bearing intervals between 2,408 and 2,634 meters. The tested zones failed to flow hydrocarbons to surface and the interval has been evaluated as tight.

Interval 3
Test 4 and Test 5 produced hydrocarbons at a combined rate of approximately 200 barrels of oil per day and 7.3 million standard cubic feet of gas per day. The tests were carried out over a gross interval between 1,241 and 1,338 meters and encountered reservoirs not previously seen in the basin.

While further evaluation and appraisal of this discovery is required to determine commerciality, preliminary estimates indicate that this interval contains oil initially in place of 30-370 million barrels with a small gas cap. The preliminary estimate of mean oil initially in place is 155 million barrels. No oil-water contact was encountered over this interval.

Interval 4
Unfortunately due to operational difficulties the well had to be completed at a depth above one of the main objectives. As a consequence, it was not possible to evaluate a potentially encouraging oil bearing interval which was encountered in the volcanics at the base of this well.

The well also encountered shallow water bearing reservoirs which could potentially be used as a mechanism for secondary recovery. Water injection could significantly enhance recovery factors on accumulations within the block.

The rig is now preparing to move to the Saraswati discovery where it will commence a two well appraisal program.

Bill Gammell, Chief Executive, commented: 'We are delighted with this new discovery which is our third in a row on this Rajasthan block. Following these successes and our recent acquisition of an additional 50% interest from Shell, we are confident that further exploration and appraisal drilling will confirm this acreage has the potential to become a material new core area for the Group.'