Reliance Industries (RIL) is likely to be close to striking hydrocarbon in an adjacent block (Palar deepwater PR-DWN-2001/1) in the Cauvery basin. Earlier, RIL had struck hydrocarbon in the CY-DWN-2001/2 (CY-III-D5) block.

According to sources, RIL is understood to be testing a well in the Palar block. The hydrocarbon success is likely to be known only after testing is completed. After successful completion of its drilling activity in the Palar block, the company has now moved to CY-D5 and is drilling an appraisal well.

CY-D5 is where RIL had run out of luck after striking oil and gas in only one out of the five wells drilled.

Though the company ran out of luck in the subsequent wells drilled, the first discovery was significant. An appraisal well is drilled to quantify the find. The find in the first well showed two hydrocarbon bearing zones. The first zone had 550 bpd of oil and one million cubic feet a day of gas, while in the second zone the company found 31 million cubic feet a day of gas and 1,200 bpd of condensate.

According to the initial appraisal programme for CY-D5 as submitted to the management committee of the block, RIL was estimated to invest about $22.75 million (approx Rs 103.28 crore) for undertaking additional work.

Also See:

RIL to invest in six new wells in KG-D6 block (07-Jan-10)