Gujarat Natural Resources Ltd (GNRL) has announced the successful completion of its third development well, KL3, in the Kanawara oil and gas field, and confirmed that its drilling rig has now been mobilized for the fourth well in the same block. The next phase of drilling is scheduled to commence in October 2025, marking a steady progression in the company’s field development plan and reinforcing its operational momentum in the Tarapur block of Gujarat.
The Kanawara field, operated by GNRL in partnership with Gujarat State Petroleum Corporation (GSPC), has emerged as a key production asset in the company’s portfolio. With cumulative production already crossing significant thresholds, the latest developments are expected to further enhance output and reserve recovery.
Key Highlights From The Operational Update
- Third development well KL3 successfully drilled and completed in Kanawara field
- Rig mobilized for fourth well, with drilling expected to begin in October 2025
- KL3 confirmed as a producer from Eocene Pay-IV reservoir within Kalol formation
- Incremental oil and gas production expected to rise by 600 percent and 300 percent respectively
- Field development plan approved by Ministry of Petroleum includes six development wells
Completion Of KL3 And Reservoir Performance
The KL3 well is part of the first phase of GNRL’s approved field development plan for Kanawara. Drilled to a depth of approximately 730 meters, KL3 has been established as a commercial producer following hydraulic fracturing and reservoir stimulation. The well taps into the Eocene Pay-IV section of the Kalol formation, known for its hydrocarbon-rich characteristics.
Post-completion testing indicates promising flow rates, with KL3 contributing to a significant uplift in daily production volumes. The well has been integrated into the field’s production network and is now operating under regular output protocols.
Rig Mobilization And Fourth Well Timeline
Following the monsoon break and completion of KL3, GNRL has mobilized its drilling rig to the designated site for the fourth development well. The rig-up process is underway, and spudding is expected in the first week of October 2025. The fourth well will target down-dip reserves identified during seismic reinterpretation and reservoir modeling exercises.
The company aims to complete drilling and testing of the fourth well by the end of Q4 FY26, with production integration planned shortly thereafter.
Strategic Importance Of Kanawara Field
The Kanawara field spans 6.3 square kilometers and has a long exploration history dating back to 1971. Since acquiring operational rights under a Production Sharing Contract in 2001, GNRL has drilled multiple appraisal and development wells, all of which have confirmed hydrocarbon presence.
Key strategic advantages include:
- Proximity to existing infrastructure and transport corridors
- High reservoir continuity and pressure support
- JV structure with GSPC enabling technical and financial collaboration
- Government-approved field development roadmap ensuring regulatory clarity
Production Impact And Future Outlook
With KL3 now online and the fourth well underway, GNRL expects a substantial boost in field output. The company has reported a sixfold increase in oil production and a threefold rise in gas volumes compared to pre-drilling levels. These gains are expected to stabilize over the next two quarters as reservoir behavior is monitored and optimized.
GNRL is also evaluating additional drilling locations within the block, subject to predictive modeling and reservoir performance. The company remains committed to maximizing recovery through enhanced oil recovery techniques and real-time production analytics.
Looking Ahead
The completion of KL3 and mobilization for the fourth well signal GNRL’s disciplined execution of its field development strategy. As drilling resumes in October, stakeholders will be watching for production metrics, reserve updates, and potential expansion of the drilling campaign.
With a strong operational base and regulatory alignment, Gujarat Natural Resources Ltd is well-positioned to capitalize on its Kanawara assets and contribute meaningfully to India’s domestic energy supply.
Sources: Gujarat Natural Resources Ltd Corporate Filings, BSE India, Kanawara Project Overview
