Shares of Videocon Industries and BPCL clocked gains in a falling market on Monday as they announced the appraisal of their third well off the Brazilian coast.

Petrobas, the block operator, completed the formation test (assessing the potential of a petroleum deposit) of well three in the ultra-deep waters of the Sergipe-Alagoas basin. The results of the formation test confirmed the presence of light oil (37° API) and good productivity of the reservoirs.

Two reservoir intervals

The exchange filings made by Videocon and BPCL separately said the drilling identified two reservoir intervals of light oil and gas — the top with a thickness of 44 m and the bottom 11 m thick, the bottom zone being a new discovery for the area. The well is located 102.7 km from the city of Aracaju (SE) and 10.3 km from the first discovery well ‘Farfan’, in a water depth of 2,467 meters.

Petrobras holds 60 per cent participating interest in the concession and IBV Brasil (a Brazilian joint venture equally held by Videocon Energy Brazil Ltd, a wholly-owned overseas subsidiary of Videocon, and BPRL Ventures NV, a wholly-owned subsidiary of Bharat Petroleum Corporation) holds the remaining 40 per cent.

The consortium partners will continue implementing the discovery assessment plan as approved by the Brazilian regulatory authority, Agencia Nacional Do Petroleo, Gas Natural e Biocombustiveis (ANP).

In the filing, Pradeep N Dhoot, Director, Global E&P Business, Videocon Hydrocarbon Holdings Ltd, said: “The formation tests of the new hydrocarbon accumulations at multiple plays will further add to the hydrocarbon resources already indicated in the said blocks.”

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