Cairn Lanka has announced that it prepares to enter the second phase of oil exploration in Sri Lanka upon the successful completion of the first phase.
In its "Third Quarter Financial Results for the period ended December 31, 2011" statement released Tuesday, Cairn Lanka said it has successfully completed the first phase of the exploration campaign in Sri Lanka Block SL-2007- 01-001.
"Our successive discoveries in Sri Lanka have established a working hydrocarbon system in the frontier Mannar Basin," the company announced in the statement.
The first phase of the exploration programme involved the acquisition, processing and interpretation of 1,753 sq km of 3D seismic data and the drilling of three well deep water wells.
In Phase One Cairn successfully discovered two successive gas and condensate deposits in the wells CLPLDorado-91H/1z well and, the CLPL-Barracuda-1G/1 well.
However a third well explored has not resulted in any significant discoveries.
The third well, CLPL-Dorado North 1-82K/1 as been plugged and abandoned as a dry hole on 14th December, 2011.
The offshore Block SL 2007-01-001, located in the Gulf of Mannar with water depths ranging from 400 to 1,900m, was awarded to Cairn Lanka in the bid round held in 2008. The Company holds a 100% participating interest in the block.
"The operations were conducted safely, in accordance with the highest global standards, within schedule, budget and in compliance with Sri Lankan regulations. Cairn Lanka's successful drilling programme - the first in Sri Lanka in 30 years - has established a working petroleum system in the frontier Mannar Basin," the Company said.
Following the successful discoveries, Cairn Lanka has notified the Sri Lankan government of its intention to enter the second phase of exploration.
Acknowledging the support of the Sri Lankan government, the Company said "an effective partnership with the relevant authorities in Sri Lanka, were instrumental in ensuring the successful completion of the first phase exploration programme."