07-19-2005, 08:51 PM
From : Financial Times â 19 July 2005
<b><span style='color:red'>CAIRN ENERGYâS INDIAN RESERVES TOP 2.5 BILLION BARRELS</span></b> <!--emo&:ind--><img src='style_emoticons/<#EMO_DIR#>/india.gif' border='0' style='vertical-align:middle' alt='india.gif' /><!--endemo-->
Cairn Energy, the independent oil company, said yesterday that oil reserves at its projects in Rajasthan, India, totalled more than 2.5bn barrels, and that the production would start at the end of 2007.
Cairn was briefly promoted to the FTSE 100 Index last year after finding oil in Rajasthan, the largest discovery in India for 22 years, and experiencing a quadrupling of its share price.
The groupâs largest discoveries are in Mangala, Bhagyam and Aishwariya oil fields, in the north of the Rajasthan Basin. The company has said that the proven and probable reserves for these fields was 1.64 barrels, and that the first oil will be produced from Mangala at the end of 2007. The three Fields are expected to produce between 120,000 and 150,000 barrels a day. Cairn has a production agreement with Oil Natural Gas Corporation, Indiaâs biggest oil exploration company.
Cairn yesterday added more information about its oil discoveries in the South of the basin, considered by the market to be less promising than those in the north. Added to the reserves from Mangala, Bhagyam and Aishwariya, the southern discoveries would push estimated reserves upto 2.5bn barrels, Cairn added.
Bill Gammell, Cairnâs chief executive, said that the southern reservoirs were lower quality but âwe think they can have significant valueâ. An appraisal programme was under way to assess reserves and recovery factors in the south, Cairn said. âWe have found a world class reservoir in the north, with high flow rates and very big reserves. The south is more like North America, where volumes are lower and more wells are needed,â said Mr Gammell.
Shares in the Edinburgh-based group rose to £13.87 yesterday. Analysts said Cairnâs trading update was positive, but did not contain much new information. The group said more details would be available with the release of its half year results on September 20.
E & O E <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b><span style='color:red'>CAIRN ENERGYâS INDIAN RESERVES TOP 2.5 BILLION BARRELS</span></b> <!--emo&:ind--><img src='style_emoticons/<#EMO_DIR#>/india.gif' border='0' style='vertical-align:middle' alt='india.gif' /><!--endemo-->
Cairn Energy, the independent oil company, said yesterday that oil reserves at its projects in Rajasthan, India, totalled more than 2.5bn barrels, and that the production would start at the end of 2007.
Cairn was briefly promoted to the FTSE 100 Index last year after finding oil in Rajasthan, the largest discovery in India for 22 years, and experiencing a quadrupling of its share price.
The groupâs largest discoveries are in Mangala, Bhagyam and Aishwariya oil fields, in the north of the Rajasthan Basin. The company has said that the proven and probable reserves for these fields was 1.64 barrels, and that the first oil will be produced from Mangala at the end of 2007. The three Fields are expected to produce between 120,000 and 150,000 barrels a day. Cairn has a production agreement with Oil Natural Gas Corporation, Indiaâs biggest oil exploration company.
Cairn yesterday added more information about its oil discoveries in the South of the basin, considered by the market to be less promising than those in the north. Added to the reserves from Mangala, Bhagyam and Aishwariya, the southern discoveries would push estimated reserves upto 2.5bn barrels, Cairn added.
Bill Gammell, Cairnâs chief executive, said that the southern reservoirs were lower quality but âwe think they can have significant valueâ. An appraisal programme was under way to assess reserves and recovery factors in the south, Cairn said. âWe have found a world class reservoir in the north, with high flow rates and very big reserves. The south is more like North America, where volumes are lower and more wells are needed,â said Mr Gammell.
Shares in the Edinburgh-based group rose to £13.87 yesterday. Analysts said Cairnâs trading update was positive, but did not contain much new information. The group said more details would be available with the release of its half year results on September 20.
E & O E <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->