At the D6 block in the Krishna Godavari basin, off the Andhra coast, Reliance made its eleventh and twelfth consecutive gas discovery in M-1 and H-1 exploration wells.

"The operator (Reliance) estimates the M-1 exploration well has approximately 155 metres of net pay making it one of the thickest net pay gas sections encountered to date in the D6 Block (where 14.5 trillion cubic feet of gas reserves have been discovered since 2002)," Niko said.

The well flowed 23.7 million cubic feet per day from a six metre interval at a depth of 2,750 metres. The H-1 well also encountered commercial gas and its results are currently being evaluated by the operator.

Niko said Reliance has also made its fifth consecutive gas find at Block NEC-25, off the Orissa coast but gave no details.

Reliance Industries has 90 per cent interest in the two blocks while Niko Resources has the remaining 10 per cent. In D6, a well on an additional prospect, G-1, drilling is going ahead.

"All drilling in 1.9 million acre D6 to date has occurred in the first 1800 square kilometre 3D seismic programme that covers 20 per cent of the block.

Processing and interpretation of newly-acquired 3D seismic data totalling 3165 square kilometres is under way with additional exploratory drilling to begin in 2005," Niko said.

Reliance has bracketed over $2 billion of capital expenditure for the two-phase development of D6 Block over the next five years. It is awaiting government approval for a development plan.

Reliance estimates the D6 block has in-place reserves of 14 trillion cubic feet of gas, and is targeting an initial output at between 450 and 500 million cubic feet of gas per day.