Block CY-DWN-2001/1 Farm-in

In 2008 Rocksource signed a Memorandum of Understanding (MOU) with the Indian national oil company, ONGC. This formed the basis for cooperation between the two companies to develop joint exploration activities offshore India. This was followed up by a Farm-Out Agreement (FOA) for Rocksource to farm into a ten per cent (10%) participating interest in the exploration block CY-DWN-2001/1 located in the Cauvery Basin, offshore south eastern India.

The First Phase of the work programme was recently completed. Block operator ONGC has drilled three exploration wells on the block, of which all turned out to be dry. None of the wells tested the prospect associated with the primary positive EM anomaly, as interpreted by Rocksource. Rocksource is formally still not party to the Production Sharing Contract (PSC). The PSC and Joint Operating Agreement have not been signed, and signing is pending outcome of commercial discussions with ONGC. It remains Rocksource’s view that unless there is a successful outcome from the ongoing negotiations, Rocksource will not be liable for any costs on the block.

Last updated: May 2011