Reliance makes two discoveries offshore India

May 16, 2007
Reliance Industries Ltd. has made two new discoveries offshore India. One discovery is in block KG DWN 98/3 in the deepwater of the Krishna-Godavari basin off the east coast. The other discovery, GS-OSN-2000/1, in the Gujarat-Saurashtra basin, is in the shallow waters off the country's west coast. The KG discovery is the deepest location drilled in this block to date, Reliance says.

Offshore staff

MUMBAI, India -- Reliance Industries Ltd. has made two new discoveries offshore India. One discovery is in block KG DWN 98/3 in the deepwater of the Krishna-Godavari basin off the east coast. The other discovery, GS-OSN-2000/1, in the Gujarat-Saurashtra basin, is in the shallow waters off the country's west coast. The KG discovery is the deepest location drilled in this block to date, Reliance says.

The company has completed drilling its 50th exploratory well, KG-D6-R1, the 23rd exploratory well drilled in block KG DWN 98/3 (KG D6). The well is in 2,010 m (6,594.5 ft) of water and was drilled to a TD of 4,860 m (15,945 ft). The well encountered two gas-bearing zones. Data obtained from logging and modular dynamic testing confirmed the presence of hydrocarbons in the Mio-Pliocene intervals, Reliance says.

The KG-D6-R1 well has been notified to the DGH and concerned authorities as a new discovery, namely Dhirubhai 34, the 18th discovery in this block. The discovery opens up new areas in the deeper stratigraphic levels in the block, Reliance says.

Reliance operates block KG DWN 98/3 with 90% interest. Canada's Niko Resources holds the remaining 10% interest. The companies are in the throes of developing India's first deepwater gas production facility for the Dhirubhai 1 and 3 fields in the KG basin, targeting first gas in the second half of 2008.

Reliance had a second find with well GS01 B1 in block GS-OSN-2000/1 in Gujarat-Saurashtra basin off the west coast. Well GS01 B1is the company's 51st exploratory well. It was drilled in 78 m (256 ft) water depth to a TD of 2,282 m (7,487 ft). A drillstem test flowed at 18.6 MMcf/d of gas with 415 b/d of condensate. The well has been notified to the DGH and concerned authorities as a new discovery called Dhirubhai 33. This well marks Reliance's first discovery in carbonate reservoirs in the West coast.

Reliance operates the shallow-water GS-OSN-2000/1 block with 90% interest. Hardy Exploration holds the remaining 10% interest.

These recent discoveries demonstrate the further upside potential of the blocks in the Krishna-Godavari basin and opens up a new corridor in the Gujarat-Saurashtra basin for future exploration, Reliance says.

Commerciality of the discoveries is under evaluation.

5/16/2007