After two significant gas finds, Cairn India today said its third well in offshore Mannar Basin of Sri Lanka has turned up dry.
"The third well, CLPL-Dorado North 1-82K/1 was plugged and abandoned as a dry hole on December 14," the company said in a press statement here.
Cairn Lanka (Pvt) Ltd, a wholly-owned subsidiary of Cairn India, had made a gas discovery in the very first well it drilled in the Block SL 2007-01-001, Mannar Basin, Sri Lanka.
A gross 25 metres hydrocarbon column was tested in the first well and 24 metres zone in second well.
With the third well, Cairn has it has "successfully completed the first phase of the exploration campaign".
The phase-1 involved the acquisition, processing and interpretation of 1,753 sq km of 3D seismic data and a three well deep water drilling programme.
More From This Section
The company would now enter the second phase which would involve appraisal drilling to establish the gas finds.
"Cairn Lanka's successful drilling programme - the first in Sri Lanka in 30 years - has established a working petroleum system in the frontier Mannar Basin," the statement said.
"The operations were conducted safely, in accordance with the highest global standards, within schedule, budget and in compliance with Sri Lankan regulations".
The company has said it has notified to the Sri Lankan government its intention to enter the second phase of exploration.
"The support of the Government of Sri Lanka and an effective partnership with the relevant authorities in Sri Lanka were instrumental in ensuring the successful completion of the first phase exploration programme," the statement said.
BSE-listed Cairn had in 2004 made India's biggest oil discovery in more than two decades, in Rajasthan. It currently produces 1,25,000 barrels of oil per day from the Mangala oilfield in the state.
Cairn India was recently takenover by London-listed mining group Vedanta Resources. Vedanta bought 40% of UK-based Cairn Energy Plc's stake in Cairn India.
The Sri Lanka block is the only overseas property Cairn India currently has. It has 10 oil and gas blocks in India.
The Mannar Basin in Sri Lanka is a frontier petroleum province that is yet to be fully explored. Block SL 2007-01-001 was awarded to Cairn in a 2008 Sri Lanka bid round.