According to a company statement, Cairn India commenced drilling of the first exploration well, after a gap of more than four years, in the prolific Barmer Basin in its Rajasthan oil and gas block.
The move to drill well follows the endorsement of the exploration Work Programme for the Rajasthan Block (RJ-ON-90/1) by the Management Committee less than two weeks ago, the statement said.
The exploration activity is intended to boost oil and gas output to 215,000 barrels per day by March 2014. On February 14, a block oversight committee, headed by the Directorate General of Hydrocarbons (DGH), had allowed the company to drill its three wells to explore new oil pools on Rajasthan block this fiscal.
The Rajasthan block currently yields 170,000-175,000 bpd and the company aims to raise this output to 200,000-215,000 bpd by the end of 2013-14.
By March 2014, Cairn plans to drill 30 exploration wells and a similar number in the year thereafter. Renewed exploration activity in the block will help the firm realise the estimated half a billion barrels of oil equivalent of risked recoverable prospective resource which amounts to about a third of the Estimated Ultimate Recovery potential in the Rajasthan block, it said.
This will help realise the basin production potential of 300,000 bpd from the Rajasthan block, it added. The three exploration wells Cairn will drill this fiscal will cost $15 million.
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