Good news from Rajasthan continues for Cairn

Vol 8, PW 4 (19 May 04) Exploration & Production
     

Good news for Cairn in Rajasthan continues unabated.

On 17th May, Cairn announced the success of the second and third appraisal wells at its Mangala field at RJ-ON-90/1. The range of estimates of oil-in-place for the Mangala field has been revised to 650m to 1.1bn barrels, Cairn said.

It is too early in the evaluation process to be precise on the appropriate field recovery factor. However, assuming secondary recovery by water flooding of the reservoirs, the current recoverable reserve expectations for the Fatehgarh range between 100m and 275m barrels.

Adds Cairn: Three additional Mangala up-dip delineation wells are to be drilled from new surface locations. Mangala-4, located up-dip on the structure between Mangala-1 and Mangala-2 is currently operating and is expected to reach TD in May.

Wells Mangala-5 and Mangala-6, to be located between Mangala-1 and Mangala-3, are both expected to spud in May. Separately, Cairn is busy preparing a crucial declaration of commerciality for five of its eight discoveries in Rajasthan.

Among the five is the NA field discovered in March this year, Mangala discovered in January and the older Saraswati and Raageshwari discoveries. Cairn estimates NA holds between 130m and 470m barrels in place and preliminary recoverable reserves of between 20m to 80m barrels.

Mangala and NA are the big ones in Rajasthan, reveals a source. They will enable Cairn to recover its back costs.

The smaller fields couldnt have done this. Next will follow appraisal of the NA discovery.

Cairn has four drilling rigs working in Rajasthan and a fifth is on its way. How much money will Cairn spend at RJ-ON-90/1 Cairn is trying to understand this and draw up an estimate.

One thing is clear: Cairn plans to drill 59 more exploratory wells on this block. Most will be drilled in the blocks northern part, which holds the Mangala and NA discoveries.

Cairn has already drilled about 20 exploratory and appraisal wells on this block.

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