Cairn Energy Completes Testing Offshore India

Cairn announces that it has completed an extensive test program on the appraisal well CB-A-2 on Block CB-OS/2, offshore Gujarat, West India, utilizing Noble Drilling's jackup, Noble Chuck Syring. CB-A-2 is a 4.5 km step-out appraisal of the Lakshmi gas discovery, announced by Cairn earlier this year. The well encountered multiple hydrocarbon pay zones between 750 meters and 1250 meters.

Four zones were tested with a cumulative flowrate of 103.3 mmscfd. The gas contained no carbon dioxide or hydrogen sulphide. A thin interval of oil-bearing reservoir was also encountered but not tested, confirming an oil leg across the structure. Following initial evaluation of the appraisal well, Cairn estimates that the Lakshmi Field contains P50 proved plus probable gas reserves in the region of 300 to 400 billion cubic feet. The appraisal well has confirmed a complex reservoir distribution across the structure. As part of the development program, a 3D seismic survey is planned for 2001 to further evaluate and delineate the field.

The drilling unit will now be moved from CB-A-2 to exploration prospect 'E' on Block CB-OS/2 which is approximately 20 km north of Lakshmi.

Work is progressing on schedule in respect of the development of the Lakshmi Field and Cairn expects the commencement of gas deliveries in the first quarter of 2002.