Cairn gets more time to explore oil block

Cairn Energy has received an 18-month extension for further appraisal of the over 2,884 square km acreage of the Rajasthan block, which preliminary estimates suggested would yield between 35-70 million barrels of oil.

Company sources said the centre had extended its exploration licence to enable it further appraise the north and west parts of the block, which include the Bhagyam and Shakti oil fields, besides several structures and intervening tracts of untested acreage.

One such structure, the N-I structure, has been successfully tested by the N-I-2 well, which lies between the Bhagyam and Mangala fields, sources said. The N-I-2 well encountered 21 metres of net pay in high quality Fatehgarh reservoirs.

The estimated oil column for the structure is 150 metres. A single cased hole test was conducted and the well flowed at a stabilised rate of 2,300 barrels of oil per day of 24 degrees API oil on a 48/64 inch choke.

Discussions were on with the government for an application for an extension of the southern area of the Rajasthan block, they said.