Shares of Anil Agarwal led Vedanta Limited increased 5.25% to ₹235.5 on Friday after the company announced discovery of hydrocarbons in the Krishna Godavari basin.
"Vedanta Limited has notified the Management Committee, Ministry of Petroleum and Natural Gas and Directorate General of Hydrocarbons (DGH) of a hydrocarbon discovery in well A3-2 within its operated block KG-OSN-2009/3 within Krishna-Godavari Basin, East Coast of India," said company in filing to the exchanges.
Discovery was made in the block awarded to Cairn India, a company merged with Vedanta Limited, which now holds 100% participating interest in the block.
"A3-2 is the first exploration well drilled within the KG-OSN-2009/3 block. Multiple reservoir zones were encountered in the Mesozoic rift formation between the depths of 3351-3944 meters with indications of hydrocarbon during drilling and formation evaluations. Down hole formation tester sampled oil and gas from the zones of interest," said the statement adding that the zone from 3610-3715 meters flowed gas to surface during well testing.
The company will do further appraisal to assess the potential commerciality of the discovery.
