HPCL makes maiden discovery of Oil in Exploration Block in Cambay

Hindustan Petroleum Corporation Ltd (HPCL) has announced that the exploration Block CB-ONN-2002/3 of about 285 Sq km of area was awarded to the consortium of GSPC (55%), Jubilant Oil & Gas Pvt Ltd (20%), Prize Petroleum Co. Ltd (15%) and Geo Global Resources (Barbados) Inc. (10%) under the IVth round of NELP by govt. of India MoPNG in the year 2004. PPCL has assigned its 15% Participation Interest (PI) to its promoter and parent Company HPCL.

The exploratory location M#1 was drilled to fulfill the MWP in phase-I of the PSC. This well was drilled to a depth of 2479m, targeting the deeper prospects Deccan & Olpad formation and also test and evaluate the reservoir potential of Dholka & Kalol pays. Based on quick interpretation and drilling observations it was decided to carry out detailed testing to evaluate the reservoir potential in different formations.

Finally four objects were tested at various depths from 1651-2457 mts, The initial test result observed a flow rate of 180 BOPD which can further be improved by various workovers using latest engineering techniques. The discovery appears to be part of a large structure which may have significant reserves and need to be appraised & delineated further through exploratory drilling. The production rate may further improve after well stimulation / hydrofacturing.

The discovery has already been acknowledged by Directorate General of Hydrocarbons. This is the first discovery by HPCL in their first Exploration venture probed by exploratory drilling and marks first success in HPCL's efforts towards vertical integration.

Source : Equity Bulls

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