The well KG-D9-B3 in the exploration block KG-DWN-2001/1 or D9 showed a natural gas deposit and was tested and plugged, Hardy Oil, the junior partner in the eastern offshore block, said in a statement.
"Although this exploration result is disappointing, the presence of thick reservoir quality sands and the potential presence of a petroleum system are encouraging. We will now work with our partner to incorporate the data gathered to update the geological model," Hardy Oil and Gas plc Chief Executive Officer Yogeshwar Sharma said.
Reliance has 90 per cent interest in D9 block while the remaining 10 per cent is with Hardy. Hardy said the well was drilled to a total depth of 3,829 meters by the Transocean drillship 'Discoverer India' in a water depth of 2,948 meters.
"The well encountered two Tertiary aged reservoir quality sand packages of 70 and 40 meters gross thickness respectively, in which gas shows ranging from 6 to 9 per cent were recorded. Testing was carried out with the MDT tool which suggests water gradient in the sand packages. The well has been plugged and abandoned," it said.
The D9 block is located in the Krishna Godavari Basin on the East Coast of India and covers an area of approximately 11,605 square kilometers. The first exploration well on the block in October 2009 was also abandoned after encountering "poor reservoir sands."
Hardy had in April last year cut the prospective resource estimate in the block D9 block, which is adjacent to Reliance's prolofic KG-D6 fields in the Bay of Bengal, by 51 per to 520 billion cubic feet from 1,061 billion cubic feet assessed in May 2009.