Cairn budgets $53m at Ravva for next year
YOULL BE disappointed if you expect anything dramatic from Cairn's 2003-04 budget for Ravva.
More than anything it looks like an exercise in holding the fort. Cairn proposes to spend $53m at Ravva during the financial year beginning 1st April, almost 20% less than the $66.5m it will have spent by 31st March.
Lower items of expenditure are behind this sharp drop in proposed spending. "Next year we have no firm drilling campaign unlike this year when we drilled three production wells and one exploration well to target a separate formation within the block," we learn.
"Geological and geophysical costs will be lower. This year we had to interpret 3D seismic shot over the block ahead of drilling the four wells." What are the highlights of the 2003-04 budget Mainly two: maintaining oil and gas production facilities to keep to current production levels; and increasing the capacity of the water separation system.
Water cut from the wells is slowly rising and forecast to reach 10% by 2004-05. Cairn has set the following production targets for Ravva in 2003-04.
50,000 barrels of oil per day average oil production 1m cm/d gas sales from existing fields 0.9m cm/d gas sales from the Ravva satellite gas fields 90,000 barrels of water injection per day We also learn that Cairn will complete ongoing exploration studies and "generation of drilling prospects including volumetric estimates and commercial evaluation/justification of potential reserves." Also planned is development of 3D geological models and reservoir simulation models for all production fields within Ravva.