So far two wells have drilled on the block, both of which were dry. However, neither well adequately tested the primary prospect or the CSEM anomaly, as defined by Rocksource. The Joint Venture is currently evaluating options for the third well of the first exploration phase work programme.

According to the Production Sharing Contract (PSC) the three exploration phases consist of the following work program:

• Exploration Phase I:
- 2D seismic acquisition: 3500 line kilometres
- Reprocessing of 2D seismic: 1000 line kilometres
- 3D seismic acquisition: 2000 km2
- Drill 3 exploration wells
- Sea Bed Logging

• Exploration Phase II:
- Reprocessing of 2D seismic: 500 line kilometres
- 3D seismic acquisition: 500 km2
- Drill 1 exploration wells

• Exploration Phase III:
- Reprocessing of 2D seismic: 500 line kilometres
- Drill 1 exploration wells

The work program for Exploration Phase I has been fulfilled, except for one exploration well left to be drilled. Exploration Phase 1 of the PSC was to expire on 12.03.2007, but a 6 month extension was granted to the Operator, ONGC. A second extension was also granted. Presently the block is under consideration for a governmental Rig Moratorium, which is expected to be granted imminently and the Exploration Phase I will accordingly be extended to 31.12.2010.

Block location map

MOU with the Indian oil company ONGC

On January 23 Rocksource signed a Memorandum of Understanding with the Indian state oil company ONGC (Oil and Natural Gas Corporation Limited) to develop exploration partnerships on the Indian continental shelf and internationally. The two companies share an intention to perform joint exploration activities based on the results of the Rocksource EM technology and integrated prospect evaluation. They will also participate in joint applications for new exploration acreage where EM technology can be applied. ONGC has already acquired substantial amounts of EM data on the Indian Continental shelf.

Rocksource Chairman and cofounder Dag Dvergsten stated “this is a significant milestone for Rocksource as it establishes a framework for joint exploration efforts with one of the largest E&P companies in Asia. It allows us to apply our proprietary electromagnetic (EM) technology in a world class hydrocarbon province, with a tremendous exploration potential. We believe that our technology when combined with ONGC’s understanding of the Indian Continental Shelf will be value creating for both companies. The fact that ONGC has chosen Rocksource as a partner is also a clear confirmation of our technology and competence”.

D.K. Pande, Director of Exploration for ONGC stated ”Rocksource has developed a unique exploration technology that we hope will contribute to improving the success rate in our exploration activities. ONGC is uniquely placed with respect to acreage on the Indian margin.”

Background: Indian margin

During the past decade exploration activities on the Indian margin have soared, largely thanks to the Indian authorities’ successful implementation of new policies to attract international E&P companies. Recently, several giant gas discoveries have firmly established India as a region of great interest on the global energy map. The annual production from the Indian offshore sector is currently at 166 MMbo crude oil and 800 BCF gas (source: Ministry of Petroleum and Natural Gas). These figures will increase further once several new fields are put into production. Nevertheless, the Indian margin basins remain under-explored, with a great potential for more major discoveries in the years to come.

ONGC is a major player in the Indian E&P industry, accounting for approximately 80 % of India's oil and gas production. Other significant players on the Indian margin include Reliance, Oil India, Hindustan Oil Exploration Company (HOEC), Cairn and others. 

Significant offshore basins

The most important offshore basins in terms of proven commercial producibility include:
• the Bombay Offshore Basin
• the Krishna Godavari (KG) Basin
• the Cauvery Basin

Recent significant discoveries

The majority of the recent giant gas finds were made in deep water clastic systems in the the KG Basin off India's east coast, including:
• India’s largest ever gas find, the 2005 Deen Dayal discovery (estimated 20 TCF) by Gujarat State Petroleum Company.
• well UD1 in the KG-DWN-98/2 block (estimated 2-14 TCF gas, ONGC, 2007)
• Reliance’s giant Dhirubhai Field, comprised by several discoveries from 2002 to recent, totaling 35 TCF gas.

Another major gas discovery was made in 2007 in the Cauvery Basin further south:
• The Dhirubhai-35 discovery (Reliance); the reserves estimates have yet to be made public, but are expected to be in the order of 20 TCF or larger.

Map showing ONGC and other licensed acreage under the Petroleum Exploration License and Mining License policies. Examples of significant recent discoveries are highlighted: (1) the Deen Dayal discovery (estimated 20 TFC gas), (2) Well UD1 in the KG-DWN-98/2 block (estimated 2-14 TCF gas), (3) the Dhirubhai Field (35 TCF gas) and (4) the Dhirubhai-35 discovery (reserves estimates not released, but are expected to be in the range of 20 TCF gas).

Chart comparing the various players on the Indian margin in terms of licensed acreage held under the Petroleum Exploration License policy.

Last update May 2009