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Last Updated: Tuesday, 10 August, 2004, 13:22 GMT 14:22 UK
Cairn makes fresh oil discovery
Oil refinery
Cairn has made four discoveries this year in Rajasthan
Shares in British oil firm Cairn Energy have jumped by more than 6% after it announced another "significant" oil find in Rajasthan in northern India.

The latest discovery - its fourth in the region this year - has an estimated reserve of 300 million barrels of oil.

Chief executive Bill Gammell said the find boded well for "future exploration and appraisal success" in the region.

Cairn's share price has more than tripled since the first discovery was announced in January.

By 1321 GMT, Cairn's shares were up 89 pence, or 6.75%, at 1407p.

Lucrative deal

All of the discoveries have been made on land where Cairn bought out Royal Dutch/Shell's 50% ownership in May 2002 for $7.25m (4m).


The first find, in the Mangala field, has estimated reserves of between 450 million and 1.1 billion barrels of oil.

In March, Cairn announced a smaller find of between 130 million and 470 million barrels.

And then in April, the company revealed it had made another discovery in Rajasthan, with an estimated reserve of 400 million barrels.

Cairn has another 10-15 exploratory targets to drill before the end of the year.

The company hopes to start pumping the oil from the region in the third quarter of 2007.




SEE ALSO:
Cairn shares leap on new oil find
20 Apr 04  |  Business
UK oil firm surges on India find
09 Mar 04  |  Business


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