After oil, Cairn India's prolific Rajasthan block holds significant natural gas reserves, estimated at 1-3 Trillion cubic feet (Tcf), over half of which can be produced.
Cairn has so far made 36 discoveries in the Rajasthan block, including the biggest onland oil field of Mangala. It made a significant gas discovery in Raageshwari find.
Recent exploration drilling and the proximity of the Raageshwari deep gas field indicates the presence of a larger multi-Tcf gas resource base, comprises Raag Deep, Guda Deep and Guda South structures.
"RDG (Raageshwari Deep Gas) field is estimated to hold 1-3 Tcf of gas in-place with estimated recovery factor of over 50 per cent," the company said in its latest corporate presentation.
Cairn currently sells 8-9 million standard cubic feet per day (mmcfd) of gas from the Raageshwari Deep gas field, which it plans to more than double to 22 mmcfd by the end of the current fiscal and take it to 90 mmscfd by FY16.
"Considering the significant gas volume potential in the block, approvals are sought to lay a 30-inch pipeline to connect to the existing gas grid in Gujarat," it said.
In all, 180-km of pipeline is proposed to be laid.
Recently speaking to analysts Cairn had said, "We are really excited that gas is likely to be around 15-20 per cent of the resource base currently being drilled."
The company is currently testing an important offset well to the Raageshwari field and have an additional six well programme of exploration appraisals to drilling and testing over the remainder of the financial year.
The ongoing 3-D seismic acquisition programmes will help identify additional prospects and the company has already acquired over 20 per cent of the targeted 1,900 square kilometres.
Cairn said it plans to invest USD 200 million in the Raageshwari Deep Gas to upgrade facilities and laying of the pipeline to help produce more.
The company estimated an in-place resource potential of about 10 billion barrels of oil and oil equivalent gas in the Rajasthan block.
Of this, 5.2 billion barrels of oil equivalent (boe) have already been established and another 0.6 billion boe have been discovered. The remaining 4.2 billion boe is yet to be drilled, according to the presentation.
Cairn has made 8 discoveries since resumption of exploration a year back. "Current drilling programme is anticipated to add 1.2 billion boe by FY15," it said.
Its Mangala, Bhagyam and Aishwariya or MBA oil fields hold 2.2 billion boe.
Cairn, which is investing USD 3