Cairn's Indian oil strike expected to impress City

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The Independent Online

City hopes are rising that an independent report to be published tomorrow will verify the scale of Cairn Energy's oil find in India.

City hopes are rising that an independent report to be published tomorrow will verify the scale of Cairn Energy's oil find in India.

The size of the find at Cairn's Mangala field, in Rajasthan, has been raised several times by the company following appraisal work, sending Cairn's share price soaring and taking the company to the fringe of the FTSE 100.

The discovery was already considered huge when the company alerted investors to it in January. Cairn initially put the recoverable oil from the field at 100 million barrels. The latest estimate from the company put it at 275 million barrels, from 1.1 billion barrels at Mangala.

Cairn has commissioned a specialist US consultancy, DeGolyer and MacNaughton, to audit the data and provide an independent appraisal of the field's size. It is thought the report will confirm that the field is as rich as the company has claimed.

Cairn has not finished its exploration and appraisal at Mangala. It must complete this work by May 2005,when it will submit a report to the Indian government.

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