Essar Oil Ltd, a subsidiary of Essar Energy, today announced that the independently verified proven and probable (2P) reserves and best estimate (2C) contingent gas resources at its Raniganj coal bed methane (CBM) exploration block in West Bengal have been significantly increased. Essar Oil has 100 per cent interest in the block.
The total proven and probable reserves (2P) at Raniganj, evaluated as on September 1, 2011, are 113 billion cubic feet (bcf) gross, or 18.8 million barrels of oil equivalent (mmboe), while best estimate contingent resources (2C) are 445 bcf gross, or 74.1mmboe.
Current production
Current production at Raniganj is around 22,000 standard cubic metres of gas per day (0.022 million standard cubic metre a day) – as against an estimated peak production of 3.5 million standard cubic metre a day. According to the release, progress towards full commercial production is continuing and test sales are on to Durgapur Industrial estate.
According to the IPO document, the company was scheduled to supply 2.8 mmscmd of gas by April 2012.
Previous evaluations
According to the release issued on Monday, the latest reserve estimates compares with the previous evaluation in December 2009 which showed 201bcf gross, or 34mmboe, of 2C resources. Both evaluations were carried out by international consultants Netherland, Sewell & Associates, Inc. (NSAI).
The release quoted Mr. Naresh Nayyar, Deputy Chairman-Essar Oil and CEO-Essar Energy, saying: “This revised evaluation of gas resources at Raniganj underlines the potential of this block.”