Cairn discovers massive gasfield in Krishna Godavari

Vol 5, PW 10 (04 Jul 01) Exploration & Production

Great news for Cairn Energy and longer term, for gas-starved customers in southern India! On 26th June Cairn confirmed to the London Stock Exchange what India's Directorate General of Hydrocarbons has been telling us for months: that its KG-DWN-98/2 deepwater block in the Krishna Godavari contains a world class gasfield! For months Cairn has been hinting that it had struck something big in a series of drip-drip announcements culminating in a May 29th release which said: "Log evaluation indicates the presence of a gas column and good quality reservoir." This week's announcement was more emphatic: "Initial reserve estimates are in the range of 0.75 to 1 trillion cubic feet of dry gas." By any standards, that's a respectable find and could spark renewed interest in India's east coast by international oil majors! Why is Cairn so confident that it's so big "We have very good quality seismic." Cairn said exploration well DWN-R-1 was drilled by rig 'Marine 500' from 'Marine Drilling' of the US and sits in water depths of more than a 1,000 metres.

This makes it the deepest offshore well drilled in India to date. 'Marine 500' now sails off to drill a second exploration well at prospect "P" approximately 12.5km northwest of "R", before returning to drill an appraisal well in August.