Cairn India Strikes O&G at Krishna-Godavari Basin Well

MUMBAI (Dow Jones Newswires), Aug. 23, 2010

Cairn India said Monday unit Cairn Energy India has found oil and gas at an onshore block in the Krishna-Godavari basin in eastern India.

The discovery was made in the Nagayalanka-1z well in the KG-ONN-2003/1 block, Cairn said in a filing with the Bombay Stock Exchange.

The block was awarded to the company in the fifth round of auctions under India's New Exploration Licensing Policy, it said.

Cairn said it has notified the discovery to India's upstream regulator the Directorate General of Hydrocarbons.

Cairn Energy India is the operator of the block with a 49% stake while state-run explorer Oil & Natural Gas Corp. holds the remaining stake.

The well flowed 75 barrels per day of oil and 0.27 million cubic feet per day of gas, Cairn said, adding that the commercial potential of the discovery is being ascertained.

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