tag:blogger.com,1999:blog-4899103722933689680.post5686842205441543385..comments2024-02-27T11:21:48.313+05:30Comments on Beating The Dalal Street............: US deficit down in first half 2010....good news for market...worldover..Rajeev Desaihttp://www.blogger.com/profile/13770541646082106675noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4899103722933689680.post-26505020426497964202010-04-14T10:58:01.500+05:302010-04-14T10:58:01.500+05:30Published on mydigitalfc.com (http://www.mydigital...Published on mydigitalfc.com (http://www.mydigitalfc.com)<br />Essar Oil to spend Rs 2,000 cr to drill 500 wells in W Bengal<br />Apr 13 2010<br /><br />Ruia brothers promoted Essar Oil will spend $439 million (Rs 1,954.4 crore) to drill 500 wells in its coal-bed methane (CBM) block located in Raniganj.<br />The company will commence commercial production of gas from this West Bengal block by end of this year.<br />“At Raniganj, we plan to drill 500 wells over the next 2-2.5 years,” an Essar official said. The company has infused equity of $35 million into the project.<br />“The remaining capital expenditure will be a mix of both debt and equity. We are in advanced stage to secure both,” he said.<br />The initial production will be close to 100,000 standard cubic metres per day and will go up to 3.5 million metric standard cubic metres per day (mmscmd) during peak production.<br />Essar Oil has signed gas sale purchase agreement (GSPA) for off-take of gas from Raniganj. “We have ten year gas supply contract with Philips Carbon Black and twenty year pact with an upcoming fertiliser company in West Bengal,” Essar spokesperson said, without divulging the price and volume of gas to be supplied to each customer.<br />Natural gas is expected to form a major portion of incremental growth in the energy demand. “India has third largest coal reserves in the world. Of the total 26,000 sq km of coal bearing area, 36 per cent is still unexplored for CBM resources,” Macquarie Research said in its latest report.<br />The directorate general of hydrocarbons (DGH) expects CBM production to grow to more than seven mmscmd in next five years. Total CBM resources in the country are estimated to be 48.5 trillion cubic feet (tcf).<br />“Demand for gas is expected to be more than supply in India over medium to long term. CBM is expected to help bridge that demand-supply gap,” said Ajay Arora, partner and national leader of oil and gas practices at Ernst & Young, India.<br />“India has been promoting use of natural gas as a fuel as compared with conventional liquid fuels due to economic concerns (large forex outflows) and environmental concerns,” Arora said.<br />Besides Raniganj, Essar has CBM blocks in Mehsana and Rajmahal. The block in Mehsana has an estimated two million barrels of oil equivalent. On the other hand, the recently acquired CBM block in Rajmahal has an estimated 9.5 tcf of gas. About 4.5 tcf of this gas is recoverable.nirashhttps://www.blogger.com/profile/14165590485881575065noreply@blogger.comtag:blogger.com,1999:blog-4899103722933689680.post-29494165888486401552010-04-13T22:08:14.235+05:302010-04-13T22:08:14.235+05:30Hi Rajeev
I am tracking Sujana Towers since last ...Hi Rajeev<br /><br />I am tracking Sujana Towers since last few weeks. It seems it is strictly in range and on downside is 48 and is a very good risk reward ratio in favour of investor.Book value of 38 and if you add 8 Rs for FY 10 to it then it is available at book value. Screaming Buy.<br /><br />Can it be a multibagger?<br /><br />Regards<br /><br />AmitAmit Guptahttps://www.blogger.com/profile/12240160963164193357noreply@blogger.com