British exploration firm Cairn Energy plans to drill three or four appraisal wells in the next few months in Rajasthan, where it recently discovered oil, the firm's Chief Executive Bill Gammell said.
Last month, the company announced it found an estimated 50-200 million barrels in the desert state of Rajasthan. A test well showed a cumulative flow rate of 6,000 barrels a day.
"In next few months three or four appraisal wells would be there to get a better view," he told reporters on the sidelines of a ceremony attended by India's Oil Minister Ram Naik and political leaders from Rajasthan.
Gammell said the company would continue to focus its exploration activities on South Asia.
Cairn's shares raced to a six-year high in January on news of the discovery, which analysts say has the capacity to more than double its reserve base, and with up to two similar prospects in the vicinity yet to be drilled, the region offered further exploration potential.
"India is very good for us, there is no reason to go outside. At present, Rajasthan is our key focus area; in future we are planning to carry out exploration activities in Bangladesh, and talks are going on for Nepal also," he said.
He said Cairn had not yet decided who would buy the crude oil and how it would be transported.
"It is too early talks are going on with government. We have to decide on many issues like who will be the buyer and to where we have to transfer the oil."
Government officials in New Delhi say that initial reports indicate that the crude oil is waxy and has low sulphur content.
Comments
Comments are closed.