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Last Updated: Thursday, 12 August, 2004, 09:52 GMT 10:52 UK
Cairn Energy takes drill to Nepal
Oil refinery
Cairn has made four discoveries this year in neighbouring India.
UK oil and gas firm Cairn Energy has signed an agreement with Nepal's government to explore new drilling areas along its border with India.

Shares in the company have tripled this year after a series of successful strikes in north western India.

"We believe Nepal has many of the fundamental geological elements required," said CEO Bill Gammell.

So far, only limited seismic surveys have been carried out, and no wells have been drilled yet.

The work will start in earnest in September, once the monsoon season ends.

The five new exploration areas are located within Nepal's Terai plains, about 300 kilometres from Delhi at the closest point.

As part of the deal, Cairn has relinquished exploration rights for over 2,700 square kilometres of designated national park and wildlife areas.

This, it said, was in line with company policy of sparing World Heritage Sites or those areas deemed environmentally sensitive.

Shares in Cairn were quoted 5 pence higher, or 0.36%, at 1413p at 0915 GMT.

Cairn makes fresh oil discovery
10 Aug 04  |  Business
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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