UK independent Cairn Energy has made a "significant" 400 Bcf gas discovery offshore Gujarat, western India, on its Lakshmi prospect in the Cambay Basin - named after India's goddess of prosperity and wealth - that has the potential to hold 2 Tcf for the operator.

Lakshmi also smiled on Cairn with the location of the new find - near the heavily industrialized Gujarat region, which is a strong market for gas supplies. Indeed, India has a booming energy market with many majors lining up liquefied natural gas business ventures.
The CB-A-1 exploration well, 4 miles (7km) offshore in Block CB-OS/2, drilled a structure that lies between the Hazira and North Tapti fields at a water depth of 66ft (20m).
It hit pay dirt, but due to the fast-approaching monsoon season, Cairn drilled the well to a total depth of 4,429ft (1,350m) and performed a limited test program. What the gods give with one hand they take away with another.
Still, Cairn will be pleased to wait for the end of the monsoon season this September or October before starting appraisal work, although a spokeswoman told Hart's E&P that if the company could work within the monsoon season, it would try to find a way.
While further appraisal is required, the estimated mean reserve for this structure is 400 Bcf, noted Cairn.
The operator is understandably eager to get going with this find, "with the objective of bringing significant volumes of gas into the Gujarat market before the end of 2001."
Studies already have given Cairn "numerous potential purchasers."
"We look forward to a quick appraisal and development program, especially given that the discovery is located so close to one of the world's fastest growing quality gas markets," said Bill Gammell, chief executive of Cairn.
The spokeswoman said Lakshmi is near the 1,658-mile (2,670km), 3.26 Bcf/d capacity Hazira-Bijaipur-Jagdishpur gas pipeline and could use this as its route to market, with the in-situ domestic industrial market also an option to buy its gas, even if the block's 2 Tcf potential is realized.
The CB-A-1 well encountered multiple pay zones between 2,494 and 4,167ft (760 and 1,270m). Gas samples were recovered from four zones, and oil samples also were gathered from two plays.
A 30m gross interval was perforated between 2,641 and 2,822ft (805 and 860m), and gas flowed at rate of 28.1 MMcf/d on a 56/64in. choke at a flowing well head pressure of 734 psi. The gas is dry methane with no CO2 or H2S.
2 Tcf potential
Apart from the upcoming appraisal drilling, Cairn is keen to spud three or four exploration wells on several additional prospects that have been identified on Block CB-OS/2.
"Including the existing discovery, these prospects have a combined unrisked mean reserve expectation of 2 Tcf," the spokeswoman said.
At least one to two probes are planned before the end of this year, with Cairn having an "aggressive Indian drilling program planned for the fourth quarter." This includes some wells on its other Indian blocks.
Cairn holds a 75% interest in the concession and is operator, following its acquisition of an additional 30% in 1999. State-owned Oil & Natural Gas Co. (ONGC) has a 10% stake, with TATA Petrodyne Ltd. having the remaining 15%.
However, ONGC has the right to increase its stake by 30%. If it takes this option, Cairn's interest would be cut from 75% to 50%.
The Hazira field is producing and is contained within a separate "ring-fenced" area in Block CB-OS/2. Gujarat State Petroleum Co holds 66.6%, and operator Niko Resources has the remaining 33.3%.
The North Tapti field is 100% owned and operated by ONGC. It is under appraisal and is also a ring-fenced region within Block CB-OS/2.