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Cairn India Gains As Unit Completes First Phase of Exploration Project in Sri Lanka

  • Cairn India rose 0.98% to Rs. 326 at 10:33 IST on BSE after the company said its wholly-owned subsidiary -- Cairn Lanka has successfully completed the first phase of the exploration campaign in Sri Lanka Block SL-2007-01-001.Meanwhile, the BSE Sensex was up 27.96 points, or 0.18% to 15,998.71.On BSE, 30,000 shares were traded in the counter as against average daily volume of 6.68 lakh shares in the past one quarter.The stock hit a high of Rs. 326 and a low of Rs. 321.40 so far during the day. The stock had hit a 52-week low of Rs. 250 on 26 August 2011. The stock had hit a record high of Rs. 372 on 5 April 2011.The large-cap stock had outperformed the market over the past one month till 26 December 2011, gaining 8.3% compared with the Sensex's 1.75% rise. The scrip had also outperformed the market in past one quarter, surging 19.77% as against 0.5% fall in the Sensex.
  • The company has an equity capital of Rs. 1902.93 crore. Face value per share is Rs. 10.Cairn India said that the exploration programme in Sri Lanka involved the acquisition, processing and interpretation of 1,753 sq km of 3D seismic data and a three well deep water drilling programme. The seismic programme exceeded the phase I commitment by 20% and the drilling programme exceeded the drilling depth commitment by 50%. This programme resulted in two successive gas and condensate discoveries: the CLPL-Dorado-91H/1z well and, the CLPL-Barracuda-1G/1 well. The third well, CLPL-Dorado North 1-82k/1 was plugged and abandoned as a dry hole on 14 December 2011, the company said in a statement.
  • The operations were conducted safety, 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, Cairn India said in a statement.Cairn India said that following this success, Cairn Lanka has notified the government of Sri Lanka of its intention to enter the second phase of exploration. The support of the government of Sri Lanka and an effective partnership with the relevant authorities in Sri Lanka were instrumental in ensuring the successful completion of the first phase exploration programme, Cairn India said in a statement.On a consolidated basis, Cairn India's net profit fell 51.9% to Rs. 763.03 crore on 1.3% decline in net sales to Rs. 2652.20 crore in Q2 September 2011 over Q2 September 2010.Cairn India is engaged in oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both state run and private buyers.

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