RIL's oil discovery in Cambay Basin

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Mukesh Ambani controlled Reliance Industries (RIL) said it has made its first on-land oil discovery in the Cambay basin, around 130 km from Ahmedabad. The company said this is the first on-land oil discovery in the block and its commercial viability is being assessed. Five wells had been drilled in the area, and the fifth well flowed at a rate of 500 barrels of oil per day (bopd), Reliance said on Tuesday.

"This discovery is expected to open future potential within the block," Reliance said in a statement. Earlier, Reliance had found crude oil reserves in the predominately gas-rich KG-D6 block off the east coast. The field, which came into production in September last year, was currently producing around 11,000 barrels a day.

The company shares have increased by 12.74 per cent in a week after this discovery.

"Overall, the company has had a very high strike rate," said Maulik Patel, an oil and gas analyst at K.R. Choksey Shares and Securities. "This shows the company's exploration and production division is doing well," Patel, who has a "hold" rating on Reliance's stock, said.

Reliance Group owned 100 per cent of the participating interest in the Cambay basin field. The oil discovery in Cambay is the second in a row after finding oil in KG-D6 in 2002. The block, which started production in September last year, is now ramping up to the maximum level of 40,000 barrels of oil a day.

The Cambay basin is a narrow and elongated rift, extending from Surat in the south to Sanchor in the north, with predicted resources of 2.05 billion tonnes. In the north, the basin narrows, but tectonically continues beyond Sanchor to pass into the Barmer basin of Rajasthan.

On the southern side, the basin merges with the Bombay Offshore Basin in the Arabian Sea. The area of entire basin is about 53,500 sq km.
The exploration in the basin began in 1956 by ONGC. Two years after, the state-run company had found gas in the region and later oil in the Ankleshwar field. More than 2,318 exploratory wells have been drilled in Cambay Basin. Out of 244 prospects drilled, 97 are oil and gas bearing, according to Directorate General of Hydrocarbons.

"A gross reservoir thickness of about 15 meter was encountered and the well flowed at a rate of 500 bopd through a 6 millimeter bean with a flowing tubing head pressure of 360 pound-force per square inch (psi) on conventional testing," Reliance said about its latest find.

The discovery, named ‘Dhirubhai-43' has been notified to the government and Directorate General of Hydrocarbons (DGH). The commercial potential of this discovery will ascertained with more data gathering and analysis, RIL added.

Mukesh Ambani owned Reliance Group finds oil in Cambay basin around 130 kms from Ahmedabad near Gujarat wherein Reliance is assessing the commercial viability of this discovery.

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