Canoro set to hit paydirt in Assam

Canoro Resources Ltd, the Canada-based oil giant, is expecting recoverable oil reserves of near 160 million barrels from Amguri and AN O7 exploration blocks in Assam Arakan basin, jointly owned by Assam Company and Canoro.

Aditya K Jadojia, senior managing director of Assam Company, said Canoro had recently concluded seismic study in two-three locations in these exploration blocks and the result was encouraging.

The original oil reserve in these two fields could be more than 500 million barrels. ACL, one of the oldest tea companies in India, is now entering the oil and gas sector.

The company had already floated a new company called Assam Oil & Natural Gas (AONG) for the purpose.Jadojia indicated that the recoverable reserve could increase in future after the 3D study. "Canoro feels that there is an upward potential in Amguri and AN 07 blocks. So it could be more than 160 million barrels, which itself is economically viable. In fact, with current oil prices at a much lesser level, reserve is now economically viable," he said.

AN 07 is a big exploration block spread over 2,000 kilometers in Assam and Nagaland. "We will carry out exploration activities in only the Assam side which is around 1,100 km" he said.

ACL owns a 35 per cent stake in AN 07 and the balance is with Canoro. In Amguri, ACL has a 40 per cent stake. Abhay Chawdhary, chief financial officer of ACL, said the company's equity in Amguri and AN '07 and three small blocks in Assam would be under the newly floated, AONG.