Cairn Energy Announces 4th Discovery Offshore India

Cairn announces a fourth hydrocarbon discovery on Block CB-OS/2 (Parvati Oil Discovery, formerly prospect G) offshore Gujarat in Western India with its exploration well CB-G-1Z, located approximately 6 miles north of the Lakshmi gas discovery. The well encountered only small gas columns at the main target level but several oil pay zones at the secondary target level below 3,600 feet.

A multi-zone test on a 40/64 inch choke, flowed oil and water at rates up to 2,000 barrels of oil per day with a water cut varying between 5-25%. For technical reasons a stabilized flow rate was not achieved. It is too early to determine whether this discovery could be commercial as initial gross reserve estimates range between 3 million and 20 million barrels of oil.

A 3D seismic survey is currently being conducted over the Lakshmi, Ambe and Gauri discoveries. As a result of oil being found in Parvati, Gauri and Ambe, the logs of the previously drilled CB-E-1 well have been re-examined and indicate a potentially oil bearing section which was not tested in the well prior to abandonment. In order to give time to analyze the new data and properly evaluate the potential of the oil play on the block, further exploration/appraisal drilling will be delayed until the results from the 3D seismic survey are available.