Monday, December 18, 2006

Reliance finds huge oil reserves in block D6

Reliance Industries Ltd has discovered huge oil reserves in its gas-rich D6 block in Krishna Godavari basin off the east coast, its minority partner Niko Resources of Canada has said.

"The MA-2 well has encountered the thickest hydrocarbon column discovered to date in D6," Niko Resources said in a release. Niko Resources has 10 per cent interest in the block KG-DWN-98/3, also known as D6. Reliance is the operator of the block with 90 per cent interest.

"MA-2 reached a target depth of 3581 metres and penetrated a gross hydrocarbon column of 194 metres consisting of 170 metres of gas/condensate and 24 metres of oil in the cretaceous section," the release said.

MA-2 is located approximately 2-km from the previous MA-1 oil discovery well.

"Application has been made for the commerciality of the MA field and approval is expected to be granted in the near future. The full field development plan will be submitted after approval of the commerciality and the oil development is to be fast tracke d with initial production targeted in the second quarter of 2008," it said.

The MA-1 well in June 2006 reached a total depth of 3,783 metres and hit 26 metres of net oil pay and 72 metres of net gas pay.

Reliance has till date made about a dozen gas discoveries in D6 and put combined reserves in the block at around 50 trillion cubic feet (Tcf). MA-2 is the second oil discovery on D6 after MA-1.


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