The consortium of Gujarat State Petroleum Corporation (GSPC), Jubliant Oil and Gas and GeoGlobal Resources have informed the petroleum ministry and the Directorate General of Hydrocarbons of an associated oil and gas discovery in its Cambay Basin block CB-ONN-2002/2. The block was awarded to the consortium under NELP-IV. While GSPC holds a 60% stake, Jubliant Oil is the operator of the block with a 30% stake and GeoGlobal holds the remaining 10%.

Jubliant Oil has informed the petroleum ministry that two drill stem tests (DSTs) were carried out in the well, which have established the presence of hydrocarbons in the block. ?As per Article 10.1 (a) of the production sharing contract, the operator hereby declares a new discovery of hydrocarbons in the well CB-3A,? Jubliant said in its October 4 letter to the petroleum ministry.

Giving details, Jubliant Oil said, ?While DST-1 showed an influx of oil but did not reach the surface, the oil presence (42 degrees API) was confirmed by reversing out measurable quantity of crude oil. DST-2 had both oil (36 degrees API) and gas to the surface thereby confirming the presence of producible hydrocarbons. The flow was witnessed by representatives from DGH.? Jubliant Oil added to determine the commerciality of the discovery, the operator plans to carry additional studies including stimulation of the tested zones.

The hydrocarbons discovery has been made in the third exploratory well CB-3A of the seven well Phase-I work commitment for the block. Drilling commenced on July, 31, 2007 and the well reached a total depth of 2620 meters on September 1, 2007.