GEECL Sees 40% Rise in Gas Output
Coal bed methane producer Great Eastern Energy Corporation has witness a 40% rise in gas output at Raniganj block to 12.5 mmscfd compared with the figures seen in May 2012, the company said while announcing its results for the six month period that ended September 30. Compared with the output in November 2011, the rise is 50%.
“We will continue to drive our production ramp-up in 2012, with a second rig deployed at Raniganj (South) block and best in class technology being used to execute fracturing on schedule. The substantial reserves upgrade we made in June 2012 reaffirms once again the recoverability of gas from the Raniganj (South) Block,” Prashant Modi, President and COO of Great Eastern, said.
A total of 132 wells were drilled including 33 deviated wells.
In the downstream segment, GEECL said it continues to supply to its existing customer base while adding further new industrial customers. Company’s gas under contract stood at 38.1mmscfd, up 11% from November 2011.
The company expects Raniganj block’s output to be in the range of 14.6 – 16.2 mmscfd by 30 December 2012. The figure may reach 21.7 – 24.1 mmscfd by 30 June 2013.
GEECL has received environmental clearance for the Mannargudi block from the Ministry of Environment and Forest, and is in advanced discussions with the Tamil Nadu Government to receive the required approval for the Consent to Establish. The company expects to commence work before the end of the year.
The number of wells likely o be drilled may be 30 pilot production wells and 50 core holes. In the Raniganj (South) block, 168 wells are expected to be drilled over the next five years, the company said.
As for the pricing environment, GEECL expects it to remain stable.
“The supply-demand balance for gas in India continues to provide a very attractive opportunity, which is set to continue for many years to come. Based as we are in the heart of West Bengal's large and growing industrial centre, with an outstanding resource base and the infrastructure fully in place to allow us to translate production growth directly into sales, we are ideally positioned to take advantage of this demand and deliver on our significant growth potential," Modi said.