British exploration and production firm Cairn Energy announced the discovery of significant oil reserves in Rajasthan. Initial estimate by the company pegs the reserve to be in the range of 450 million to 1,100 million barrels. However, preliminary reserves estimates, or the amount of oil that can be realised, is in the 50 to 200 million barrels range. | |
| Significantly, public sector Oil & Natural Gas Corporation (ONGC) has a right to 30 per cent of any development area resulting from commercial discovery on the block. |
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| Cairn informed the government the N-B-I exploration well, which was currently under drilling in the northern part of the block RJ-ON-90/1 block in the Rajasthan basin, had made the discovery in a large simple onshore structure at shallow depths. |
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| The well is located 60 kilometres north of Cairn's previous discovery named Saraswati Oil Field in Barmer district. |
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| The well is currently at a depth of 1,250 metres and is yet to reach its planned total depth. |
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| The company said, "Once the well reaches the total depth, a test programme will confirm reservoir deliverability, after which further announcements will be made." |
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| Also, according to the government statement, an intermediate log has been run and evaluated and oil samples have been recovered from Fategarh sands, the company said. |
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| The well has encountered two separate reservoir sections, with a log evaluated gross oil column of 136 metres in silty sands from the Barmer Hill formation. |
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| The net pay is estimated to be 22 metres with an average porosity of 21 per cent. The well further intersects a log evaluated gross column of 185 metres in excellent high quality Fatehgarh sands. The net pay is estimated to be 85 metres with an average porosity of 25 per cent. |
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| Cairn is involved in extensive exploration across a 5,000 square kilometre block in Rajasthan. But it is yet to declare any of its finds as commercially viable. |
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