India finds more oil

Cairn strikes it rich again.

British energy firm Cairn Energy has again struck oil in Rajasthan, its ninth discovery in the state in the past two years.

The company found 300 million barrels of oil reserves in northern Rajasthan with the N-V-1 exploration well, located 18 km west-northwest of the gigantic Mangala field, company executives said.

N-V-1, the fourth discovery Cairn has made in the northern region of the 5,831 sq km block RJ-ON-90/1, lies 19 km west-southwest of the N-C discovery, and is in close proximity to the existing northwestern boundary of the block.

The British firm had struck 450 million-1.1 billion barrels of in-place oil reserves in Mangala, of which 50-200 million barrels are estimated to be recoverable reserves. Another 400 million barrels of in-place oil reserves were found in the N-C-1 exploration well.

In the block's southern region, Cairn had made the Saraswati, Raageshwari and Guda discoveries among others. "With the latest discovery, we expect production of close to 3 million tonnes of crude oil annually from the Rajasthan block," they said.

The N-V-1 well, which is currently operating at a depth of 812 metres, encountered an oil column of 62 metres with an estimated 35 metres of net oil pay. An agreement with the government will be required for a second extension area beyond the current northwestern block boundary before further appraisal.

Cairn Energy Chief Executive Bill Gammell said, "This is the fourth significant oil discovery Cairn has made in the northern portion of the Rajasthan block this year. This further demonstrates the widespread distribution of reservoirs and bodes well for future exploration and appraisal success.