Cairn India, subsidiary of the UK-based Cairn Energy, has reported an oil and gas discovery near its existing Raageshwari field in Rajasthan.

The company said that the discovery was located approximately 1.5km east of the Raageshwari 1 well in the southern part of the Mangala, Aishwariya Raageshwari and Saraswati development area. The adjacent Raageshwari field has gone comercial and has an approved field development plan.

The new discovery was found in a well that was spudded on 21 November and reached total depth on 24 November. 

The well encountered approximately 10 metres (m) of net oil pay from a gross column of 81m in sands in the Thumbli formation at at depth of 1,425 metres.  The open hole drill stem test flowed 40 degree API oil at a stabilised rate of 500 barrels of oil per day plus 0.4 mmscfd gas on 64/64'' choke from a 4m Net pay interval in the Upper Thumbli Sand.  In addition 1.4m of gas pay was identified in the Akli formation at 1247.8m MDBRT (1153.03m TVDSS). 
 
''The success of this well on the eastern flank of the Raageshwari structure extends the productive reservoir in a new trapping style and proved a deeper oil column,"said Rahul Dhir, CEO, Cairn India.

Dhir added, "The well also demonstrates the potential for the addition of incremental reserves from the areas around the discoveries already made in the licence.  Future work on the Raageshwari East 1/1Z discovery includes field studies to determine the extent of the discovery as well as evaluate cost effective development options.''
 
Cairn India is currently focused on exploration and production in India where it has a working interest in 14 blocks, two of which are producing hydrocarbons.  The company holds material exploration and production positions in west India and east India along with new exploration rights elsewhere in India.

Cairn has made significant number of oil and gas discoveries, particularly the major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. More than 20 discoveries have been made in Rajasthan block RJ-ON-90/1.

In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a production sharing contract (PSC) signed on 15 May 1995. The main development area (1,858 km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is shared between Cairn India and ONGC, with Cairn India holding 70 per cent and ONGC having exercised their back in right for 30 per cent.

A further development area (430 km2), including the Bhagyam and Shakti fields, is also shared between Cairn India and ONGC in the same proportion. The operating committee for Block RJ-ON-90/1 consists of Cairn India and ONGC.

India currently imports approximately 2,000,000 barrels of oil per day (bopd), while producing approximately 700,000 bopd of which approximately 50,000 bopd comes from the Cairn India-operated Ravva field on the east coast of India.

Cairn India in August announced that it is all set to start production of crude oil at its massive Rajasthan field next year (See: Cairn to start production from Rajasthan field in 2009)

Cairn India in September entered into an agreement with Sri Lanka for oil and gas exploration in the Mannar Basin with initial investment of over $110 million. (See: Cairn India signs investment commitment for Mannar Basin exploration with Sri Lanka)