Cairn India Ltd has discovered oil and gas in its East Coast onshore block

Cairn India Ltd has discovered oil and gas in its East Coast onshore block. According to the company, a flow of 75 barrels a day of oil and 0.27 million cubic feet a day of gas was achieved during the initial testing in the block KG-ONN-2003/1.




If and when more oil and gas are found in the block by Cairn and its partner ONGC, it would help expand their production and revenues. Sources told Business Line that it is a light crude oil. Light crude oil flows freely at room temperature and receives a higher price on the commodity markets because it can produce a higher percentage of petrol and diesel.

http://www.thehindubusinessline.com/2010/08/24/stories/2010082452230100.htm

Earlier this year, Cairn had initiated a multi-well exploration drilling campaign in the block that it had won in the fifth round of the New Exploration Licensing Policy (NELP-V). “The well and test results are being evaluated to assess the commercial potential of the discovery and to determine the future appraisal programme,” the company said in a statement to the BSE on Monday.



It further said that Cairn Energy India Pty Ltd (CEIPL), a wholly-owned subsidiary of Cairn India, has notified the Directorate-General of Hydrocarbons of a discovery of oil and gas in the Nagayalanka-1z well, located in the onshore block KG-ONN-2003/1.



CEIPL, the operator of the block, has a 49 per cent participating interest and ONGC holds the balance 51 per cent equity. Cairn already has experience in the prolific east coast, as it is producing from the Ravva fields.