Mukesh Ambani led Reliance Industries Ltd (RIL), which has tasted success in a block in the Cauvery basin, could be close to striking hydrocarbon in an adjacent block (Palar deepwater PR-DWN-2001/1) in the region.
The first success was in the CY-DWN-2001/2 (CY-III-D5) block.

The company has temporarily shifted focus to Cauvery-Palar offshore from the Krishna-Godavari Basin where it had a huge success.

In the Palar block, RIL is understood to be testing a well. The hydrocarbon success would be known only after testing is completed, industry sources said.

After successful completion of its drilling activity in the Palar block, the company has now moved to CY-D5 and is drilling an appraisal well. Sources told Business Line that RIL started drilling the appraisal well a few days ago.

CY-D5 is where RIL had run out of luck after striking oil and gas in only one out of the five wells drilled.

On why the company returned to CY-D5, a source said: “Though the company ran out of luck in the subsequent wells drilled, the first discovery was significant. An appraisal well is drilled to quantify the find.”

The find in the first well showed two hydrocarbon bearing zones.

The first zone had 550 barrels a day of oil and one million cubic feet a day of gas, while in the second zone the company found 31 million cubic feet a day of gas and 1,200 barrels a day of condensate.
According to the initial appraisal programme for CY-D5 as submitted to the management committee of the block, RIL was estimated to invest about $22.75 million for undertaking additional work. “This number, however, is expected to go up now,” a source said while not indicating the definite figures.

These two blocks were awarded to RIL in NELP III. As on date, RIL has 29 oil and gas blocks, and has made 44 discoveries (both commercial and non-commercial) including overseas properties.
Blocks such as CY-D5 are called wild cat blocks, and the success ratio is one in 10 globally in such blocks. Wild cat blocks are new frontier areas.

Source:http://www.thehindubusinessline.com/2010/03/08/stories/2010030851470100.htm