ONGC finds gas in KG basin block

State-owned Oil and Natural Gas Corp (ONGC) today said it has struck natural gas in a block that sits next to Reliance Industries' KG-D6 area in the Krishna Godavari basin.

ONGC found gas in an appraisal well drilled on the block KG-DWN-98/2, where the company had previously made 9 gas discoveries. "Exploratory/appraisal well KG-DWN-98-A#2 in NELP Block KG-DWN-98/2 was drilled to a depth of 2541 meters... (It flowed) 3200 barrels per day of oil and gas at the rate of 113,760 cubic meters per day (during testing)," the company said in a statement. This was the second appraisal well on the block and "will give a very significant boost to ONGC's efforts to monetise discoveries in Northern Discovery Area of this block," it said. Block KG-DWN-98/2, which sits next to RIL's KG-DWN-98/3 or KG-D6 block, is divided into Northern and Southern Discovery Area. Eight of the finds are in the northern part of the block. Also read: Rangarajan's formula too complex for gas consumers says Sharma The Northern Discovery Area (NDA) consists of the Padmawati, Kanakadurga, Annapurna, D/KT, U, A, W and E gas finds in in water depths ranging from 594 metres to 1,283 metres. The Southern Discovery Area consisting of the UD-1 discovery falls in ultra-deepwater with a depth of 2,841 metres. The firm plans to drill 8 wells to appraise or re-ascertain the commerciality of the finds - six in NDA and two in SDA. ONGC said the appraisal has begun and KG-DWN-98-A#2 was the second appraisal well. MORE PTI ANZ SA