Rocksource - update on India operations, exploration block CY-DWN-2001/1

Rocksource ASA (OSE: RGT) has been in discussions with ONGC over the 2010 work programme for the exploration block CY-DWN-2001/1 located in the Cauvery Basin, offshore south eastern India. The discussions have been constructive with both parties keen to progress the drilling of the remaining well from the work programme in 2010.

ONGC have rig capacity available for 2010, and an estimated spud date will be communicated as a firm schedule is established.

“We have held talks on how to progress the 2010 work programme and are pleased to work with ONGC towards testing the potential in the block”, CEO Trygve Pedersen of Rocksource ASA commented.

Mr D.K. Pande, Exploration Director at ONGC added; “Although we appreciate that the drilling programme on CY-DWN-2001/1 has taken longer than anticipated, we are now in constructive talks with the aim to move towards drilling in 2010. The cooperation with Rocksource has been very constructive and we appreciate the company’s significant technical contributions in the partnership.”

Rocksource signed in 2008 an agreement with the Indian state oil company ONGC to farm into 10 per cent of the exploration block CY-DWN-2001/1. The block covers an area of 12,425 km2, which is equivalent in area to approximately 30 exploration blocks on the Norwegian Continental Shelf. Rocksource’s owner interest has been approved by India’s “Directorate General of Hydrocarbons” (DGH), and is now only pending approval from the Indian Government.

The work programme requires three exploration wells to be drilled in the first phase with options to extend into a second and third exploration phase, on success. ONGC is the block operator (45 per cent) with Oil India (20 per cent) and Brazilian state oil company Petrobras (25 per cent) as partners.

Oslo, 20.1.2010
Rocksource ASA

 
Trygve Pedersen
CEO

+ 47 90 09 77 41