OIL makes gas discovery in Andhra Pradesh

Oil India Ltd, the nation's second biggest oil explorer, today said it has made a second natural gas discovery in an onland block in Andhra Pradesh. The discovery was made in Krishna Godvari basin block KG-ONN-2004/1, which OIL had won in sixth round of auction under New Exploration Licensing Policy, the company said in a statement.

The discovery made at well Thanelanka-l is the second find in the block, it said. "Earlier, a gas discovery was made at well Dangeru-l in Andhra Pradesh in the block."

The well Thanelanka-1 is the first high pressure-high temperature (HP-HT) well drilled by OIL and has encountered hydrocarbon bearing sands, the statement said, adding that on testing the HP-HT zone produced 1300 standard cubic meters per day of gas.

"Presently, the well is under further testing," the company said without giving an reserve estimate.