Exploration

Oil India Discovers New Natural Gas Potential in Rajasthan’s Dandewala Field

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Oil India Limited announced a new natural gas discovery in the Dandewala Field in Rajasthan, with the well recording average gas inflow of around 25,000 SCMD from a depth of approximately 950 meters. The discovery marks the first successful gas presence established in the shallower Sanu Formation within the field and strengthens future appraisal and development potential.

PRICE-SENSITIVE TRIGGER

Event: Natural gas discovery in Dandewala Field, Rajasthan

Type: Exploration and resource discovery update

Impact: Positive

Immediate Effect: The discovery enhances the hydrocarbon prospectivity of the Dandewala block and opens a new exploration play in the shallow Sanu Formation, supporting future resource scaling and development activities.

Key Metrics:

Average natural gas inflow: 25,000 SCMD
Estimated Gas In Place (GIP): 75 MMSCM
Discovery depth: ~950 meters

Highlight:

First-ever successful gas establishment in the shallow Sanu Formation of Dandewala Field

What Happened ?

Oil India Limited disclosed a new natural gas discovery in its nominated Dandewala Field located in Rajasthan. The exploratory well recorded an average inflow of approximately 25,000 standard cubic meters per day (SCMD) of natural gas from a depth exceeding 950 meters.

The company stated that this is the first successful establishment of gas presence in the shallow Sanu Formation within the Dandewala field. The discovery validates Oil India’s focused technical intervention strategy aimed at revisiting previously underexplored hydrocarbon opportunities.

Preliminary structural, petrophysical, and subsurface analysis indicate estimated Gas In Place (GIP) of nearly 75 MMSCM, improving the long-term exploration and production outlook for the field.

Key Details

Discovery Assessment and Operational Significance:

The discovery was made in Oil India’s nominated Dandewala Field in Rajasthan.
The well delivered average gas inflow of approximately 25,000 SCMD.
Gas flow was encountered from a depth of around 950 meters plus.
The discovery validates hydrocarbon potential in the shallow Sanu Formation.
Preliminary estimates indicate Gas In Place of around 75 MMSCM.
The development improves overall prospectivity of the Dandewala block.
Oil India indicated that the discovery supports future appraisal and development programs in the region.
The company described the result as validation of its “missed opportunities” exploration strategy.

Note:

Management termed the discovery “modest but significant,” highlighting its strategic importance despite relatively limited initial production scale.

Risk Analysis

Summary:

While the discovery improves exploration visibility in the Dandewala Field, commercial viability, reserve conversion, and production scalability remain subject to further appraisal and development outcomes.

Key Risks:

Current resource estimates remain preliminary in nature.
Commercial production potential has not yet been fully established.
Additional appraisal drilling and subsurface studies may alter reserve estimates.
Production scalability and economic feasibility remain dependent on future field development plans.
Natural gas pricing and infrastructure economics could influence project monetization timelines.

Worst Case Scenario:

If subsequent appraisal results fail to validate reservoir continuity or commercial extraction economics, the discovery may remain a limited standalone resource without meaningful production scale-up.

Risk Level: Medium

Company Commentary

Oil India stated that the discovery demonstrates “encouraging deliverability and potential.”
The company highlighted that this is the first successful gas presence identified in the shallow Sanu Formation.
Management said the discovery validates its strategy of revisiting subsurface potential through focused technical interventions.
Oil India noted that the development augurs well for future appraisal and production scaling efforts in the field.

Official Exchange Filing: Oil India Limited