The Petroleum Resources Development Secretariat has received a further discovery notice over the weekend from Cairn Lanka (Pvt) Ltd, the operators of Sri Lanka's second exploration well in the Mannar Basin.

This well, the Barracuda 1/G-1, was drilled to a depth of over 4700m in a water depth of 1509m in Block SL 2007-01-001.

Three petroleum bearing formations were encountered between 4067 and 4206m, comprising a gross pay of 24m and containing gas with further indication of liquid hydrocarbons. The Barracuda well is 38 km from the first discovery well Dorado, and approximately 60km from west coast.

The drillship Chikyu will shortly be moving to the next well location. Further drilling is expected before the commerciality of the prospects discovered are accurately assessed.

Cairn India Ltd, a subsidiary of Cairn Energy Plc, in October informed President Mahinda Rajapaksa that there are very favorable and strong indications of the presence of oil in the region.