No gas or oil in 4th well-Cairn

28 February 2013 09:05 pm - 24 - {{hitsCtrl.values.hits}}

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Against the backdrop of Sri Lanka going for a second licensing round to auction more blocks, the fourth well drilled in Sri Lanka’s Mannar basin by Cairn Lanka, a fully owned subsidiary of Cairn India, has been plugged and abandoned as a dry hole.

“The well was plugged and abandoned and the rig is being demobilised. The Petroleum Resourced Development Secretariat (PRDS) is being notified,” said Cairn India in a statement.

It further noted that they encountered multiple thick high quality reservoir sands, which were not hydrocarbon bearing.

Cairn Lanka entered into the second phase of oil exploration in the Mannar basin with the drilling of the fourth well on February 2, three months before the scheduled date due to the early availability of a rig.

In a recent Interview with Daily Mirror, Cairn India and Cairn Lanka Director Sunil Bharati speaking of the possibilities lying beyond the second phase said that there were several paths Cairn Lanka could take in going forward.

“Depending on the results of the second phase, there could be two or three different paths available to us, as envisaged in the Petroleum Resources Agreement. Either we can choose to proceed to the third phase, which will again require drilling a commitment well and have a time period of one to two years, or not to enter the third phase but enter into an appraisal phase followed by a development phase.”

“If we opt to enter the development stage, we will have to do a detailed appraisal to establish the volume of oil or gas available in the block, which will take one to two years. Only then will we know whether the block is commercially viable,” he said.

He further added that both paths had timelines clearly defined in the PRA Cairn Lanka had entered into with the Sri Lankan government, with six months to one year extension periods.

The statement released by Cairn India yesterday noted that the data, along with the results of the prior two discoveries, were being integrated to fully understand the future block potential.

In October 2011, Cairn Lanka announced that it had discovered natural gas deposits in Dorado, an exploratory well located in the SL 2007-01-001 block in the Mannar basin.

This was followed by a further announcement in November that the firm had discovered gas deposits with hydrocarbon potential in the second exploratory well, Barracuda. A third well was also drilled and subsequently abandoned as a dry hole.

Meanwhile, Sri Lanka is currently preparing to launch a second licensing round to auction more blocks in the Mannar and Cauvery basins amidst interest expressed by oil majors in the world. (Indika Sakalasooiriya)

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Comments - 24

Ranjit Friday, 01 March 2013 06:01 AM

Why dig the sea for oil when there is enough soil to dig for crops.

Dee Friday, 01 March 2013 12:04 PM

Aiyyo! , now how to reach 4000USD+ per capita?

JOn Friday, 01 March 2013 08:22 AM

This stupid work is destroying the natural eco system in the sea will bring disaster to the country.

Digger Friday, 01 March 2013 07:53 AM

Keep on digging and digging until oil is ejected.

Gabo Singho Friday, 01 March 2013 07:56 AM

Its time to stop the digging and call it a day. We have not viable oil deposits, why throw good money for bad? Just stop digging.

Gabo Singho Friday, 01 March 2013 07:54 AM

Didn't the Russians dig for oil in these parts during the time of Mathini? And they found nothing, so why dig now once again. If there is or was oil, in this area the Big oil companies would have been here in a jiffy.

kumar Friday, 01 March 2013 06:26 AM

There is no oils you can find except the leakage from sea ships.

lamaya Friday, 01 March 2013 06:26 AM

So what to do give the government an idea to find solution.you have so many experience than Mahinda no?

Dingiri Banda Friday, 01 March 2013 06:15 AM

Since 70s this good for nothing party utter the oil baila to fool the pro SLFP nuts. Percy why dont you please go. We dont need you anymore.

lk Friday, 01 March 2013 06:14 AM

Dear Mom, You don't say "wow" for disappointment...

lk Friday, 01 March 2013 06:13 AM

Don't you know those were election kundu... !!I knew it.. ;)

Gas Friday, 01 March 2013 06:02 AM

I have few Gas deposits in my Stomach

kasi Thursday, 28 February 2013 09:43 PM

no oil or gas in any of the well.

PRASANNAJIT Friday, 01 March 2013 05:18 AM

This was obvious from the beginning. Do you think other countries would have not come here if there was oil around. It is this govt who took the people for a ride.

Punchi Banda Friday, 01 March 2013 05:15 AM

The day Oil starts to flow from Mannar Basin we consumers will be palying twice the world market price of oil including the cost of kick backs and inefficiencies.

Uneducated Friday, 01 March 2013 04:57 AM

keep digging.........

Nodrog Friday, 01 March 2013 04:57 AM

Can we trust these Indians? If we have oil we will be economically better off than them and more important in the region.

Muthu Friday, 01 March 2013 02:20 AM

There is no election in the near future to make oil flow.

Cobra Friday, 01 March 2013 02:19 AM

Only katha!

ss Friday, 01 March 2013 02:07 AM

and despite eighty years of higher education all we can do is totally depend on foreigners when it comes to technology. the educated in Sri lanka - what an unproductive clan

Kane Thursday, 28 February 2013 11:46 PM

May there will be imported oil field in Hambantota.

Jagath Leanage Thursday, 28 February 2013 11:37 PM

I can remember a prominent figure told in an elction campaign (just before the elcetion), there is a big oil deposit is in Mannar.

HK Thursday, 28 February 2013 10:01 PM

Already all the commitions reached the members for the this huge project by showing a big oil dream to public..

your mom Friday, 01 March 2013 12:00 AM

wow this is so disappointing :( via DM Android App

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No gas or oil in 4th well-Cairn

Comments - 24

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