The Hindu Business Line : Great Eastern Energy reports growth in CBM reserves

Kolkata June 6 Great Eastern Energy Corporation Ltd (GEECL) today reported an escalation of its coal-bed methane (CBM) reserves in Raniganj block by 38.5 per cent to 1.92 trillion cubic ft.

The company is also expecting to start commercial production of 1.5 million cubic ft CBM a day by end-July. GEECL is listed in the alternative markets segment of LSE and brought in the first FDI in CBM sector.

Cost Efficiency

The project has already earned the distinction of being the first to move on development phase and is now set to produce the first CBM in the country.

According to the company, the Netherlands-based Sewell and Associates Inc, in its report on June 1, has pegged the in-place reserve size at 1.92 tcf. A Schlumberger's 2005 report previously estimated the in-place reserve at 1.386 tcf.

According to a release issued at the LSE, Great Eastern has completed drilling of 23 wells and established 513 mcfd (million cubic ft a day) CBM production from nine wells. The company is targeting a 100 well drilling plan in four years.

The drilling rig procured for greater cost efficiency is already shipped and is expected to arrive in India in end June.

Development Plan

Mr Y.K. Modi, Chairman and CEO of Great Eastern, said: "We have made considerable progress in the last twelve months. The first 20 wells of our phased development programme are nearly complete. We anticipate saleable production shortly. The second phase of the development plan is underway and we are encouraged by both the increase in our reserves estimate and continuing rise of the gas market in India."

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