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An oil and gas discovery in Block CY-ONN-2002/1, near Bhuvnagiri, in the south-east part of the state of Tamil Nadu in the Cauvery Basin. This exploration block was awarded to Jubilant Oil and Gas Pvt. Ltd.(JOGPL) as Operator, Gujarat State Petroleum Corporation (GSPC) and GAIL (India) under New Exploration Licensing Policy-IV. It marks the second hydrocarbon discovery by Jubilant Energy in 5 months.

The new discovery of Gas and light crude oil is made in Andimadam and Sattapadi formation in the Cauvery Basin, in addition to the established Bhuvanagari Formation. A total of 110 meter of Net Pay was encountered within the well.

CY-1, the first exploratory well of the three well phase-I work commitment for this Block, commenced drilling on August 21 , 2007 and reached a total depth of 4,210m on November 16, 2007. Three hydrocarbon bearing intervals were identified based on wire line logs and mud log data.

Three intervals were selected for testing to establish the presence of producible hydrocarbons, one interval each in the following Geological Formations: Andimadam, Sattapadi and Bhuvnagiri.

Drill Stem Test (DST)-l tested the Andimadam formation in the interval 3,944-3,950 m. The well flowed gas at the rate of 35,000 SCFD through 16/64″ choke along with light crude oil of 47° API. DST-1A was conducted again in Andimadam formation within the intervals of 3,953-3,956m, 3,959-3,965m, 4,005-4,010m and 4,016-4,020m flowed gas at 21,000 SCF/D through 161 64″ choke.

DST-2 tested the Sattapadi Formation in the interval 3827m-3816m with flow of gas @34,000 SCFD through 12/64″ choke along with light crude oil of 360 API. The well did not completely unload its completion fluid and thus may have higher flow potential in the entire tested interval. The main and most promising reservoir of the region, Bhuvnagiri formation is planned to be tested by DST-3 at a later date and would include stimulation. The two positive DSTs confirmed the presence of producible hydrocarbons and J were witnessed by representatives from the Directorate General of Hydrocarbons (DGH).

On October 8, 2007 Jubilant Energy had announced discovery of oil & gas in Block CB ONN 2002/2 near Mehsana, Gujarat State, North of the Gulf of Cambay in Western India.

Commenting on the occasion, Chairman Shyam S. Bhartia and Co-Chairman Hari S. Bhartia of Jubilant Energy said: “These tests are notable because for the first time ever the Andimadam and Sattapadi formations have proved to contain producible hydrocarbon within the Block and open the potential for new productive reservoirs in this part of the Basin. This second successive discovery in the last 5 months certainly epitomizes the focused approach of the exploration program undertaken by Jubilant Energy.”