Reliance Industries Ltd.

Reliance Industries has abandoned the second exploratory well in a Krishna-Godavari block after encountering disappointing results. The well, KG-D9-B3 in the exploration block D9, showed a natural gas deposit and was tested and plugged. The D9 block is located in the Krishna Godavari Basin on the East Coast of India and covers an area of approximately 11,605 square kilometers.

However, the presence of thick reservoir quality sands and the potential presence of a petroleum system are encouraging. Reliance has 90 per cent interest in D9 block while the remaining 10 per cent is with Hardy Oil. The well was drilled to a total depth of 3,829 metres. The first exploration well on the block in October 2009 was also abandoned after encountering poor reservoir sands.

The prospective resource estimate in the D9 block, which is adjacent to Reliance’s prolific KG-D6 fields in the Bay of Bengal, has been decreased by 51 per to 520 billion cubic feet from 1,061 billion cubic feet assessed in May 2009.