Videocon Industries updates on Status of Oil Field in Oman

With reference to the Company's earlier communication informing that the Consortium comprising of Videocon, Oilex Australia, GAIL, HPCL and BPCL has been allotted Block No. 56 in Oman for exploration and production, Videocon Industries Ltd has announced the update on the status of the Block as under:

- The Participating Interest of the members in the Consortium are as under:

Videocon - 25%
Oilex Australia - 25% (Operator)
GAIL (India) Ltd - 25%
HPCL - 12.5%
BPCL - 12.5%

- Block No.56 is on the Eastern Flank of the Central Salt Producing Oil Field in Oman. Central Salt Producing Oil Field produces approximately 700,000 barrels of oil per day.

- Block No.56 has the potential reserves in excess of Four Billion barrels as per the estimates of world famous research firm Fugro Robertson of the UK.

- The Consortium has signed Production Sharing Contract. In the 1st Phase-11 Wells are proposed to be explored and in the 2nd Phase - 15 Wells are proposed to be explored.

- 3 drilling locations have been identified in that part of the block covered by pre-existing 308sq kms of 3-D with estimated oil in-place of 250 million barrels.

- The following aspects of the Block No. 56 are discussed at the Operating Committee Meetings:

* Technical Review & Regional Setting
* 2D/3D Seismic Reprocessing
* Proposed 2007 Well Location and forward strategy and work programme budget review.
* 7 potential prospects have been identified & 3 are emerging as front runners
* Operator has now received all of the outstanding field and workstation 3D seismic data from PDO
* Various drilling related well information has been obtained from a number of PDO drilled wells adjacent to Block 56 to assist the Operator in well planning and design.

- The Company’s share is the Work Programme is USD 24.6 Million. The Company has already spent Cash Call of USD 4,05,500 till date in FY06-07.

Further the Consortium is proposing to Reprocess existing data; Acquire 1,000km 2D seismic commencing July 2007 and Drill 2-3 wells Q3 2007 on 40-100 mmstboip structures.

Source : Equity Bulls

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