) and its partner India's Reliance Industries ("RIL") have struck
gas for the second time off the east coast of the Cauvery basin
The deepwater gas condensate discovery in the exploration well
CYIIID5-S1 is situated in Block CY-DWN-2001/2, about 62
kilometers from the coast in the Cauvery Basin. With a primary
goal of exploring Mesozoic-aged reservoirs, the probe was drilled
to a total depth of 5,731 meters, in water depth of 1,743 meters.
Preliminary appraisal of well data and fluid samples revealed
that the well traversed a gross hydrocarbon column of 143 meters
in the reservoir interval. During the drill stem test performed
to assess the potential of the discovery, the well flowed at a
rate of 35.2 million cubic feet of gas per day and 413 barrels
per day of condensate, on a 20.6 millimeter choke.
The initial reservoir pressure of the well was 8,000 psi. Per the
company's statement, the well flow rates are restricted by the
rig and well test equipment configuration during such tests. The
well had attained its total depth in early August.
A notification with respect to the discovery has been sent to the
Government of India and India's Directorate General of
Hydrocarbons (DGH). The authority has named the latest find as
D-56. The first discovery was made in July 2007.
The operator of the block, RIL, has an interest of 70%, while BP
has a stake of 30%.
The latest find is a positive for both the companies, which have
been criticized so far for not being able to ensure the fall in
output from the rich KG D6 block. A declaration of commerciality
is now required to be submitted to the DGH by the companies.
However, the duo may drill one or two more appraisal wells before
BP carries a Zacks Rank #3 (Hold). However, there are other
stocks in the oil and gas sector -
Range Resources Corp.
Susser Petroleum Partners LP
) - which hold a Zacks Rank #1 (Strong Buy) and are good
BP PLC (BP): Free Stock Analysis Report
DRIL-QUIP INC (DRQ): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
SUSSER PETRLEUM (SUSP): Free Stock Analysis
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