Cairn India has discovered an oil and gas in Western India. It is good news for India as the country still depends on oil import to satisfy its domestic and industrial needs. It pays huge sum as crude import bill from its state exchequer.

The newly discovered area is located approximately 1.5 km east of the Raageshwari 1 well which is a commercial and approved field development plan. The Mangala, Aishwariya Raageshwari and Saraswati development area, nearby the discovered field, are already producing oil.

The company tested the well on November 21 and found credible clues of oil in the field. After reaching Total Depth (TD) on November 24, it produced API oil at a stabilized rate of 500 barrels of oil per day plus 0.4 mmscfd gases. The discovery would definitely help to reduce country's import bill and lower some burden of its foreign reserve kitty.

The news caused surge of 4 percent in stokes of company which closed at an intra-day high of Rs162 and an intra-day low of Rs155.