Financial Daily from THE HINDU group of publications
Thursday, Jul 07, 2005
Financial Daily from THE HINDU group of publications Thursday, Jul 07, 2005 |
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Corporate
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Announcements Essar Oil clarifies on Ratna, Mehsana blocks Our Bureau
Mumbai , July 6 ESSAR Oil Ltd today clarified to the stock exchanges on the status of its E&P activities in Ratna offshore and Mehsana onshore blocks. According to company sources, this was in response to rumours in the market about some discovery that had led to some activity on its table. The company said that a production-sharing contract (PSC) for Ratna offshore field was yet to be signed with the Government of India and other parties. There has been no significant development in this regard and the company's share in this field remained at 50 per cent. Regarding the Mehsana onshore block in Gujarat, the company was required to drill three exploratory wells in the first phase and this was completed in the last week of June. While one well was dry, the second had some heavy oil that did not come to the surface, and therefore as per the PSC's definition it was not deemed a `discovery'. The third well, where testing got completed in the last week of June, produced some oil and associated gas, but it lasted only for three days, the company said. Since then, the third well has been capped. In order to prove commercial discovery of this oil/gas on a sustainable basis, the company needs to drill another three-four appraisal wells. It would then have to test the results to establish the extent of the reservoir and quantum of oil and gas in place and the recoverable portion thereof. Thereafter, the prospects will need to be revalidated by an internationally reputed third party, before the company can claim any commercial discovery, the clarification said.
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