A second discovery has been made of a natural gas deposit in the state of Andhra Pradesh. The discovery was made by Oli India Ltd. (OIL) which had earlier won the right to access a section of the Krishna Godavari basin block that was part of a sixth round of auction under the New Exploration Licensing Policy, the block bearing the official designation KG-ONN-2004/1, but the reserve, or well, being named “Thanelanka-1”. The first discovery of natural gas deposit made in the state was also made in this block and this well has been named “Dangeru-1”.
Thanelanka-1 is the first well to have been drilled under the HPHT (high pressure-high temperature) conditions, which are generally considered to be far riskier than wells that do not bear these characteristics. HPHT wells are also more expensive to extract materials from, and a far more accurately calculated plan for testing and extraction will have to be achieved before the company can begin extraction. So far, the initial news from testing has been promising, as OIL has said that they have been able to extract hydrocarbon-bearing sands from Thanelanka-1. The company revealed that during the initial tests, the well had produced 1,300 cubic meters of gas per day.
With further testing of this well in progress, OIL as the country’s second largest exporter of oil seems to have made a wise investment, and will certainly bank on on-shore deposits such as this to help add production volume to their overall production of oil and natural gas, both in Andhra Pradesh, and from the rest of their operations within India.