Cairn makes second gas find off Western India

Cairn Energy PLC said Monday that it was considering development options for a second oil and gas find on block CB-OS/2 off Gujurat in Western India. Two zones in the Ambe discovery flowed 41 MMcfd of gas on a 96/64-in. choke, while a third zone flowed 150-500 b/d of oil.


LONDON�UK independent Cairn Energy PLC said Monday that was considering development options for a second oil and gas find on block CB-OS/2 off Gujurat in Western India.

Two zones in the Ambe discovery, made via exploration well CB-C-1, flowed 41 MMcfd of gas on a 96/64-in. choke, while a third zone flowed oil at rates varying from 150-500 b/d. Testing of two other zones was "inconclusive."

The gas from Ambe was dry methane with no CO2 or H2S, according to Cairn, while the crude is 25�-gravity with low gas to oil ratio of 120 scf per stock tank barrel.

Cairn Chief Executive Bill Gammell said a 3D seismic program to delineate Ambe and the nearby Lakshmi find will start later this month. The company hopes to firm up its gross reserves estimates at Ambe, which are 50-200 bcf of gas equivalent, through appraisal drilling in the first quarter.

The Ambe find follows the Lakshmi gas discovery Carin made in December, which flowed 3.3 MMcfd and is thought to contain proved plus probable reserves of 300-400 bcf.

"Future development options of the Ambe discovery are being considered," the company said. "However, conceptually, the field could be tied back as a satellite development to Lakshmi." Development work at Lakshmi is "progressing on schedule," according to Cairn, which expects first gas deliveries in the first quarter of next year.

Meanwhile, the company said it had decided to abandon exploration well "E" drilled on the block after encountering subcommercial gas volumes, and turn its attention to the nearby "B" exploration well, which has reached a TD of 1,315 m with logs indicating "multiple" potential pay zones. Preparations to test "B" are underway, said Cairn.

Cairn holds 75% of block CB-OS/2. Partners are TATA Petrodyne Ltd., with 15%, and government-owned Oil & Natural Gas Corp. with 10%. ONGC can increase its interest 30%, cutting Cairn's to 50%.

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