In the sixth well drilled in a 1,424sq.km block under a joint venture agreement GAIL and GSPC struck oil with tests proving the well to be a prolific light crude oil producer.

“The recoverable reserves, based on initial testing results, are estimated to be approximately 10 million barrels, with an upside potential of 50 million barrels. A detailed geo-scientific study is currently being carried out for appraisal and commercialisation of the reserves,” said GAIL.

Additionally GAIL acknowledged it has signed two JOAs to conduct E&P operations at the Tripura and Cauvery Basin blocks.

According to GAIL, one agreement was signed with Enpro Finance Private Ltd, for the Tripura block in the Assam-Arakan basin, [where] GAIL has an 80% participating interest in this block.

“The other agreement was signed for Cauvery basin block in Tamil Nadu, where both Enpro and GSPC are the consortium partners. GAIL holds a 50 per cent participating interest in this block.”

Exploration activities have begun at both blocks. Cauvery is expected to yield both oil and gas while Tripura will yield only gas.