Cairn Drills 2nd Successful Lakshmi Well Offshore India

Cairn has successfully completed a second Lakshmi oil appraisal well. The CB-A-5 well was drilled on the north eastern flank of the field 7 kilometres from the initial discovery well (LA-2) and encountered oil bearing reservoirs in the same stratigraphic interval. Petrophysical logs and core data from the well confirmed high quality oil bearing reservoirs consistent with those encountered in previous wells.

In April 2002, the LA-2 discovery well flowed at a combined rate of 10,500 barrels of oil per day and was followed by a successful appraisal well (CB-A-3) in May 2003. This first appraisal well was located 3.5 kilometers north west of the initial discovery.

The CB-A-5 well results are in accordance with the pre-drill prognosis and are consistent with Cairn's current estimates of oil initially in place of 100-300 million barrels with mean recoverable reserves of 66 million barrels.

The Ensco 54 jackup is now being moved to the CB-A-4 appraisal well location on the north western flank of the structure, 4 kilometers to the west of the initial discovery.