Cairn bags another, smaller discovery in Rajasthan

March 9, 2004
Cairn Energy PLC, London, said its N-A-1 exploration well in southwestern Rajasthan, India, is an oil discovery with preliminary recoverable volumes estimated at 20-80 million bbl.

By OGJ editors
HOUSTON, Mar. 9 -- Cairn Energy PLC, London, said its N-A-1 exploration well in southwestern Rajasthan, India, is an oil discovery with preliminary recoverable volumes estimated at 20-80 million bbl.

The well, on northern Block RJ-ON-90/1 some 5 miles southeast of the company's larger N-B-1 (Mangala) discovery, cut a 120 m gross oil column with 15 m of net pay in "excellent quality sands of the (Paleocene) Fatehgarh formation." The number of Fatehgarh sands encountered is sharply less than at Mangala, Cairn said.

TD is 1,634 m. The first two Fatehgarh zones flowed 1,226 b/d of 31° gravity oil through a 1-in. choke on an open hole test.

Preliminary estimates of OOIP at N-A-1 is 130-470 million bbl, Cairn said.

N-A-1 also encountered a log evaluated oil-bearing column of 60-150 m in an apparent tight, silty Paleocene Barmer Hill formation. The Barmer Hill section is a possible future candidate for further evaluation and fracture stimulation.

Cairn plans to review the drilling program to allow early appraisal of N-A-1.

Crude delivery timeframes
In its yearend presentation, Cairn floated timeframes for delivery of crude from its Barmer basin discoveries.

Most likely Phase 1 development will involve southbound trucking or rail transport of crude starting in first quarter 2005 from the central and southern discoveries, Saraswati, Raageshwari, Guda, GR-F, and N-Q-1 (see map, OGJ, Feb. 2, 2004, p. 44).

Most likely Phase 2 development would see construction of a crude oil pipeline from the northern fields, including Mangala and N-A-1, tying in the central and southern fields, and connecting with India's main oil pipeline system in mid- to late 2007. The pipeline would be about 150 miles long.

Among development challenges on the 5,000 acre block, Cairn listed a crude oil agreement with the government's purchaser nominee, the high wax and pour point composition of the crudes, provision of power and water for secondary recovery, and funding.