25 June 2010, London, UK - Essar Energy plc (LSE:ESSR), the India-focused integrated energy company, today announced that its subsidiary, Essar Oil Limited (BSE:ESOIL), has been declared the winner of four Coal Bed Methane (CBM) exploration blocks following the announcement made by the Cabinet Committee on Economic Affairs (CCEA) yesterday. The CCEA has approved the award of seven exploration blocks under the CBM-IV bid round, which was initiated in October 2009. Of these, Essar Oil has been declared the winner of four quality CBM blocks at the following locations in India:
Block Name Location Acreage Gas in place resources (prospective, per DGH estimates)
RM(E)-CBM-2008/IV Rajmahal (Jharkhand) 1128 sq. Km 91 bcm (3.2 tcf1)
SP(NE)-CBM-2008/IV Sohagpur (Parts of Madhya Pradesh and Chhatisgarh) 339 sq. km 17.21 bcm (0.6 tcf)
TL-CBM-2008/IV Talcher (Orissa) 557 sq. Km 74.55 bcm (2.6 tcf)
IB-CBM-2008/IV IB Valley (Orissa) 209 sq. Km 34.1 bcm (1.2 tcf)
(1) Essar Oil undertook a separate Competent Person Report (CPR) in 2010 which indicated best estimate prospective resources at 4.7 tcf (Advanced Resources International)
Shishir Agrawal, CEO - Essar Exploration & Production Limited, said: "We are delighted with this development. The four new blocks will give us an additional acreage of 2,233 sq. km and in-place prospective resources of over 7.6 tcf of CBM gas, according to the gas in-place resource estimates contained in the information documents issued by the Directorate General of Hydrocarbons (DGH) at the time of bidding."
Speaking on the development, Naresh Nayyar, CEO of Essar Energy said: "We now have the largest CBM acreage in India. CBM exploration is a key area of development in Essar Oil's E&P business and we have the best technical team that is helping us emerge as a leader in this space. "
Essar Oil has another CBM block at Raniganj, West Bengal, where a Competent Person Report (CPR) has certified recoverable resources of c. 1 tcf. Drilling activities for the second phase are progressing and gas production from the 15 test wells drilled earlier this year has started ramping up with the progressive dewatering of these wells. Ground infrastructure and pipeline for evacuation of the gas are progressing. Customers for the initial gas have already been finalised, and a long-term contract for sale of 2.8 mmscmd of gas has been signed with Matix Fertilisers and Chemicals Limited. The pipeline for supplying the gas is likely to be commissioned shortly and customer sales are due to commence in Q4 2010.
Rajeev Now latest is govt had deregulate oil prices by putting their best of motive. they compare it with other countries like nepal , pakistan , bangladesh but wont compare with western countries .They are applying internatinal pricing. When they are doing this they forget the buying power of people of western countries. Does it impact the same as people india or in usa.
ReplyDeleteHi Rajeev
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ravi
rajiv bhai
ReplyDeletei think essar oil cross 200 mark very soon
raju bhai
ReplyDeleteany view on rama news print at cmp book value 52 cmp 18
This stock is already costly at current prices. But due to it being manipulated, it can reach any level. fundamentaly though, you will never see great profits like reliance. This is how the promoters work (you can see essar steel and other group companies) - http://nse-invest.blogspot.com/2010/06/essar-oil-ltd-500134.html
ReplyDeleteDear Mahajan,
ReplyDeleteLET US LOOK INTO THE SUBJECT ONCE AGAIN
http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500356
BIG LOSS,PROMOTERS'S SELL...ACTUALLY TERRIBLE TO WATCH THE SCRIPT....Is there any fresh news attracting to the script immediately...?it is seemed to fall further...expecting ur reply