From rxpgnews.com

India Business
Cairn India makes two hydrocarbon discoveries
May 10, 2007 - 7:02:56 PM

Jaipur, May 10 - Hydrocarbons exploration major Cairn India Wednesday said it has made two discoveries one for gas and the other for oil in Rajasthan even as it had secured government's nod for a six-month extension to appraise another field in the state.

'The two discoveries confirm our belief that the Rajasthan basin is world class and will continue to add incremental value,' Rahul Dhir, chief executive officer of Cairn India, said in a statement, lifting the firm's shares by 2.4 percent.

'Cairn India is delighted to have secured this extension to further evaluate the potential of this area,' he added. The field is technically called the Northern Appraisal Area of the Rajasthan Licence RJ-ON-90/1 in northwest India.

In June 2005, Cairn India was granted an 18-month extension until 14 November 2006 to complete its activities in the northern appraisal area to the north and west of the field where the company had made some discoveries.

But severe flooding in Rajasthan in 2006 interrupted the work programme, forcing Cairn India to cease operations. It then entered into discussions for a further extension of work programme for a part of this acreage covering 879 sq kms.

Cairn India is currently focused on exploration and production and has a working interest in 15 blocks, two of which are producing hydrocarbons. It holds rights in several regions in the country.

Listed on Indian bourses since January 1997, the company had India made a major oil discovery in Rajasthan in the beginning of 2004, called the Mangla field, and has made 22 discoveries in the state so far.



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