Cairn India Signs exploration acreage in Sri Lanka

The Government of Sri Lanka and Cairn India on July 07, 2008 signed the Petroleum Resources agreement for the exploration license to explore for oil and natural gas in the Mannar Basin.The signing took place in Colombo today with the Minister for Petroleum and Petroleum Development Resources A.H.M Fowzie from the Government of Sri Lanka and Indrajit Banerjee the Chief Financial Officer and Executive Director of Cairn India.The Block SL 2007-01-001 which is offshore North West Sri Lanka and covers approximately 3,000 Km2 in water depths of 200 meters to 1800 meters was awarded to Cairn India in the recent Sri Lanka bid round. The work programme includes proposals to acquire 5,000 kilometers (km) of 2D, 1,000 km2 of 3D seismic and drill three wells in the initial three years of the eight year exploration period.Cairn Lanka (Private) Ltd, a wholly owned subsidiary of Cairn India has been formed which would hold a 100% participating interest in the block.Indrajit Banerjee the Chief Financial Officer and Executive Director of Cairn India, said: "Cairn India is delighted to be awarded the exploration license by the Government of Sri Lanka. The Manner basin has not been explored in Sri Lankan waters and as such represents a frontier petroleum province. The company has extensive experience in the region and will aim to work with all stakeholders as it embarks on its exploration programme.