Jubilant Energy finds oil/gas in Cauvery

New Delhi, February 14, 2008: Jubilant Energy, part of the Jubilant Group, today announced that it has made an oil and gas discovery in Block CY-ONN-2002/1 near Bhuvnagiri, South East part of the state of Tamil Nadu in the Cauvery Basin. This exploration block was awarded to Jubilant Oil and Gas Pvt. Ltd. (JOGPL) as Operator, Gujarat State Petroleum Corporation (GSPC) and GAIL (India) Ltd. under NELP-IV. It marks the second hydrocarbon discovery by Jubilant Energy, within a span of 05 months.

The new discovery of Gas and light crude oil is made in Andimadam and Sattapadi formation in the Cauvery Basin, in addition to the established Bhuvanagari Formation. A total of 110 meter of Net Pay was encountered within the well.

CY-1, the first exploratory well of the three well phase-I work commitment for this Block, commenced drilling on August 21st, 2007 and reached a total depth of 4210m on November16, 2007. Three hydrocarbon bearing intervals were identified based on wire line logs and mud log data.

Three intervals were selected for testing to establish the presence of producible hydrocarbons, one interval each in the following Geological Formations: Andimadam, Sattapadi and Bhuvnagiri.

Drill Stem Test (DST)-1 tested the Andimadam formation in the interval 3944 m "� 3950 m. The well flowed gas @ 35,000 SCFD through 16/64" choke along with light crude oil of 47° API. DST-1A was conducted again in Andimadam formation within the intervals of 3953-3956m, 3959-3965m, 4005-4010m and 4016-4020m flowed gas @ 21,000 SCF/D through 16/ 64" choke.

DST-2 tested the Sattapadi Formation in the interval 3827m-3816m with flow of gas @34,000 SCFD through 12/64" choke along with light crude oil of 36° API.

The well did not completely unload its completion fluid and thus may have higher flow potential in the entire tested interval.

The main and most promising reservoir of the region, Bhuvnagiri formation is planned to be tested by DST-3 at a later date and would include stimulation.

The two positive DSTs confirmed the presence of producible hydrocarbons and were witnessed by representatives from the Directorate General of Hydrocarbons (DGH).

Earlier in October 08, 2007 Jubilant Energy had announced discovery of Oil & Gas in Block CB ONN 2002/2 near Mehsana, Gujarat State, North of the Gulf of Cambay in Western India.

Besides these discoveries, Jubilant Energy has participating interest in the producing Kharsang fields in Arunachal Pradesh along with OIL & Geopetrol. Jubilant Energy also holds interest in the major gas discovery of KG basin, namely Deen Dayal and in the Miroli and Sanand discoveries of Ahmedabad area. Both these blocks are being operated by GSPC.

Additionally, Jubilant Energy has interest in 03 blocks in India, 03 in Yemen and 01 in Australia, which are in various stages of exploration.

Commenting on the occasion, Mr Shyam S Bhartia, Chairman and Mr Hari S Bhartia, Co-Chairman, Jubilant Energy said: "These tests are notable because for the first time ever the Andimadam and Sattapadi formations have proved to contain producible hydrocarbon within the Block and open the potential for new productive reservoirs in this part of the Basin. This 2nd successive discovery in the last 05 months certainly epitomizes the focused approach of the exploration program undertaken by Jubilant Energy."