Reliance Industries Ltd. (RIL), a private energy company, and its partners BP PLC ADS (NYSE: BP, Stock Forum) and Niko Resources Ltd. (TSX:T.NKO, Stock Forum) announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India.
According to the Niko Resources press release, the KGD6-MJ1 well was drilled in a water depth of 1,024 metres - and to a total depth of 4,509 metres - to explore the prospectivity of a Mesozoic Synrift Clastic reservoir lying over 2,000 metres below the already producing reservoirs in the D1-D3 gas fields.
Formation evaluation indicates a gross gas and condensate column in the well of about 155 metres in the Mesozoic reservoirs. In the drill stem test, the well flowed 30.6 million standard cubic feet per day and liquid rate of 2,121 barrels a day with a choke of 36/64".
The discovery, named 'D-55', has been notified to the Government of India and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field.
RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Niko is an international oil and natural gas exploration and production company.
On Friday, Niko soared 23% and was trading at $7.37 a share. The company had a market cap of $517.5 million, based on 70.2 million shares outstanding. The 52-week high and low was $33.80 and $5.13 respectively.