State-owned Bharat Petroleum Corp Ltd (BPCL) on Thursday said natural gas reserves have been discovered in a block off Mozambique. US energy firm Anadarko Petroleum Corp the operator of Area-I in Rovuma Basin off Mozambiques coast where BPCL has a minority stake discovered more than 145 meters of natural gas pay in an exploration well drilled on the block,it said in a statement.
It,however,did not provide reserves the discovery made hold. Bharat Petro Resources Ltd,a unit of BPCL,has 10 per cent interest in the block. Videocon also has an equivalent interest in the block where Anadarko has 36.5 per cent stake. Cove Energy has 8.5 per cent,Mitsui 20 per cent and Mozambique national oil firm ENH,the remaining 15 per cent. Anadarko drilled exploratory well Windjammer to a depth of 4,250 meters about 48-km east of Mozambique coastline.
BPCL shares spurted 4.69 per cent to Rs 590.60 on the Bombay Stock Exchange after the anouncement. The companys stock topped the gainers in the BSEs A group.
Windjammer,which is currently being drilled in the acreage,has reached an intermediate casing point and encountered more than 145 net meters of natural gas pay in multiple high quality reservoir sands with a gross column of more than 365 meters, it said,adding that the well would be drilled another 1,250 meters to test deeper objectives. The company plans to drill two to four more exploration wells.
Bharat Petro Resources carries out exploration and production activities. It undertakes exploration and production of oil and gas,besides other energy resources,in order to achieve reasonable supply security for the parents refineries. BPRL has participating interest in over a dozen oil and gas exploration blocks in India and overseas with equity stakes in the hydrocarbon blocks in Oman,East Timor and Australia.
BPCL had earlier earmarked Rs 1,500 crore for hydrocarbon exploration and production projects. These will be carried out by BPRL and is part of the Rs10,000 crore capital expenditure that the company has lined up till 2012.