The company's subsidiary, Cairn Energy India, made the discovery in the Nagayalanka-1z well, encountering a 200 meter thick section of tight sandstones with low porosity and permeability, it said.
Test drills achieved a flow of 75 b/d of oil and 270 Mcf/d of gas. The results are being evaluated to assess the commercial potential of the discovery and to determine the future appraisal program, the company said.
Cairn Energy India is the operator of the Krishna Godavari block, which was awarded in the NELP V (New Exploration and Licensing Policy) bidding round in 2005. It has a 49% participating interest in the block, with India's state-owned Oil and Natural Gas Corp. holding the rest.
London-listed metals and mining group Vedanta Resources last week agreed to acquire up to 60% of Cairn India for as much as $9.6 billion in cash, giving it control of India's large oil reserves in the
northwest Rajasthan region.
Cairn India is held 62.37% by Cairn Energy and 14.94% by Malaysia's Petronas, with the remaining equity in the hands of retail and institutional investors.
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
