Will Start Shale Gas Drilling In India Soon: GEECL
Indian coalbed methane explorer Great Eastern Energy Corporation (GEECL) November 7 said it will soon start drilling for shale gas in India.
“The company is in the process of obtaining final approvals and expects to commence initial shale gas exploration work by drilling core wells soon thereafter. Subject to the results obtained and positive analysis from the core wells, the company intends to drill an optimum number of pilot production wells,” GEECL said in a statement.
The company last year said it will invest $2bn for the full development of shale resources in its east Raniganj (South) CBM block in the east Indian state of West Bengal. The government of India early-2018 tweaked the rules to permit exploration and exploitation of all types of hydrocarbons including shale resources under the existing CBM contracts. The government says its policy will enable the realisation of prospective hydrocarbon reserves in the existing contract areas which otherwise would remain unexplored and unexploited.
Meanwhile, London-listed GEECL reported a 4.34% year on year drop in net profit for the six months to September 30 (H1 2020). Net profit stood at $3.74mn during H1, compared with a net profit of $3.91mn in the corresponding period a year ago, the company said. Its revenue dipped to $19.21mn during H1 from $20.71mn in the year ago period.
“Company's revenue impacted by mild deceleration in industrial growth and the steel sector as a result of the general economic climate; however, a recent increase in consumer demand,” it said.