RIL Makes a Significant Oil & Gas Discovery in its very First Well in Deep Waters of the Cauvery Basin

Reliance Industries Ltd has announce success in its very first well in the Cauvery deep-water basin it the east coast of India. This is the first time a hydrocarbon discovery has been made in the Cauvery deep-water basin. The deep-water block CY-DWN-2001/2(CY-III-D5) located in the Cauvery Basin, with an area of 14,325 square kilometers, was awarded to the Company under the bidding round of NELP III. The Company holds a 100% participating interest in this block.

The success of the well CY-III-D5-A1 in the exploration block CY-DWN-2001/2 (CY-III-D5) marks the beginning of a new vista of exploration in this basin. This well was located in a water depth of 1185 meters and was drilled to a target depth of 4081 meters and terminated in the crystalline basement. The well encountered a elastic reservoir with gross hydrocarbon column of around 150 meters in Cretaceous section. The presence of oil and gas with condensate has been confirmed by several tests including Modular Dynamic Tester (MDT) and Drill-Stem Testing (DST). During DST the well produced 31 million Standard cubic feet of gas with 1200 barrels of condensate per day from the main zone. Another zone tested below the main zone produced around 550 barrels of oil per day with 1 million standard cubic feet of gas. This discovery namely 'Dhirubhai - 35' has been notified to Government of India and Directorate General of Hydrocarbons.

Within a short span of six years as an E&P operator, the Company has discovered hydrocarbons in the four major offshore basins of India namely Krishna Godavari, Mahanadi, Saurashtra and now Cauvery basin, with major commercial finds in deep waters. This discovery establishes the Company as a pioneer in the challenging deep-water exploration in India.

The stock closed the day at Rs.1827.35, up by Rs.50.80 or 2.86%. The total traded quantity was 917263 compared to 2 week average of 562959. The stock hit an intraday high of Rs.1834 and low of Rs.1785.

Source : Equity Bulls

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