The well revealed gas shows after it was spud in 6" hole to a depth of 6175 feet true vertical depth (TVD).

Lost circulation was encountered while drilling at 6173 feet TVD, due to which a decision to stop drilling and log the well was taken.

The drill cuttings description at the well found the lithology of the formation being drilled when losses occurred to be sandstone and very high mud gas readings were observed over this unit.

The operator, Pan Orient Energy, is currently running a cement plug at the bottom of the well where mud losses were observed and will then drill ahead to a suitable point to determine whether a more permeable reservoir is present and then log the well.

Sound Oil chairman and chief executive Gerry Orbell said Jatayu is proving a very problematic well with gas shows over a 600 feet interval and with zones of different pressures.

"The hole condition makes wireline logs difficult to interpret although we are encouraged by our own analysis that indicates several units with reservoir potential," Gerry added.

A revised forward program for the well is planned if it is not possible to cure the drilling fluid losses.