Reliance Industries today said it will drill three more wells in the Krishna Godavari basin block where the first exploratory well was abandoned owing to poor gas find.
"RIL remains committed to pursuing exploration campaign in (KG-D9 block)," the company said in a statement, after its stock took a hammering on news of exploratory failure.
The company denied rumours that it was quitting the KG- DWN-2001/1 (KG-D9), in the vicinity of its prolific KG-D6 gas field, saying it will incorporate data and information from the first unsuccessful well in future drilling.
RIL holds 90 per cent stake in the block and UK's Hardy Oil has the remaining 10 per cent.
Earlier in the day, the British company said the well 'KGD-A1' drilled for exploration purpose would be "plugged and abandoned".
"While encountering some background gas while drilling, the well encountered poor reservoir sands in both the Middle and Lower Miocene target levels," the firm said.
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Following the news, shares of RIL plunged over 4.50 per cent on both the Bombay Stock Exchange and the National Stock Exchange.
The stock finally settled for the day at Rs 2,047.30, down 4.04 per cent on BSE and was quoted at Rs 2051.25, down 3.93 per cent on the NSE.
"There is a commitment to drill three more wells in this block," RIL said, adding, it will complete the work.