Following the hammering of Mukesh Ambani-owned Reliance Industries’ (RIL) stocks on the bourses on Friday, the company said it would drill three more wells in the Krishna-Godavari basin block where the exploratory well KG-D9-A1 was abandoned owing to poor gas find.
“RIL remains committed to pursuing exploration campaign in (KG-D9 block),” the company said in a statement here after its stocks slid on the stock exchange on news of exploratory failure. The company denied rumours that it was quitting the KG- DWN-2001/1 (KG-D9), in the vicinity of its prolific KG-D6 gas field, saying it would incorporate data and information from the first unsuccessful well in future drilling. RIL holds 90 per cent stake in the block and U.K.’s Hardy Oil has the remaining 10 per cent. Earlier in the day, the British company said the well ‘KGD-A1’ drilled for exploration purpose would be plugged and abandoned. “While encountering some background gas while drilling, the well encountered poor reservoir sands in both the middle and lower miocene target levels,” the firm said in a statement. Following the news, shares of RIL plunged by about four per cent on both the Bombay Stock Exchange and the National Stock Exchange.
The stock finally settled at Rs. 2,047.30, down 4.04 per cent on the BSE, and at Rs. 2,047.35 on the NSE. “There is a commitment to drill three more wells in this block and we will complete the work,” the statement added.