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Cairn makes 3rd oil and gas find off Gujarat

UK explorer Cairn Energy Plc, which last year launched an aggressive 40 million pound multi-well exploration programme, said on Thursday it had made a third gas and oil discovery off Gujarat.

The discovery on Block CB-OS/2 off Gujarat had tested natural gas at a rate of 39.2 million standard cubic feet of gas per day (mmscfd), while oil flowed at 1,039 barrels per day.

The group said that the "Gauri" discovery strengthened its gas marketing position in an area of high but unsatisfied demand.

An appraisal programme on Gauri is planned for the first half of the year with initial estimates of gross reserves set at between 100 and 300 billion cubic feet of gas equivalent.

"We are continuing our extensive drilling programme in India with further exploration and appraisal drilling on this block and the commencement of exploration drilling on Block KG-DWN-98/2," chief executive Bill Gammell said in a statement.

Cairn's shares, which have outperformed the oil and gas sector by more than 80 per cent in the past 12 months, were up 2-1/2 pence or one percent at 244-1/2p at 0840 GMT. Cairn has a 75 per cent stake in the west coast joint venture along with India's state-run Oil and Natural Gas Corp and Tata Petrodyne.

The UK group holds a 100 per cent interest in the KG-DWN-98/2 block.

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