Cairn India strikes oil in Rajasthan, stock up 2.6%

Moneycontrol Bureau

Cairn India has made a new oil discovery in the Barmer field in Rajasthan, following the government's recent policy decision allowing exploration in mining lease areas, which was earlier was restricted. However, it is too early to ascertain volumes at this stage, stated the company to the exchanges. Technical evaluations indicate nearly 10 metres of gross oil column within Dharvi Dungar sands in Raageshwari-Tukaram area, Cairn India further said. This is the 26th discovery so far in the Barmer block from where the company has high expectations. Shares of the company rose around 3 percent to Rs 293.65 post this announcement. This development reaffirms the company's belief that an aggressive exploration drilling programme will help harness full potential of the Barmer field, said P. Elango, CEO and Board member of Cairn India. After four years, the Vedanta Group company commenced exploration activities in the field in which it holds 70 percent stake along with ONGC having 30 percent share. Both partners currently produce around 175,000 bopd (barrels of oil a day) from the Rajasthan block, with a strong focus on enhancing it to 300,000 bopd. Read This: Buy Cairn India; target of Rs 397: Emkay