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Essar Oil and Gas Exploration and Production (EOGEPL), on Monday, reported a multi-fold increase in its net profit at ₹97 crore for Q3 FY23 aided by ramp-up in gas production and reduction in internal consumption.
The company reported its highest-ever quarterly revenue of ₹219 crore in Q3 FY23, with 54 per cent Y-o-Y growth. The profit after tax (PAT) increased by 273 per cent to ₹97 crore, it said in a statement.
EOGEPL Director Prashant Ruia said, ”Essar aims to participate in India’s vision of reducing carbon footprint and provide industries with alternate clean fuel at economical prices. We are committed to contributing to India’s vision of becoming a gas-based economy in the next decade by ramping up its gas production.”
Also read:Essar 2.0: Focus on clean energy, metals, infrastructure and IT solutions
EOGEPL CEO Pankaj Kalra noted that the company delivered a strong operating performance with a ramp-up in gas production and reduction in internal consumption by around 12 per cent.
“The company continues to focus on key priorities of field upgradation and a further reduction in internal consumption, which will be acting as a holistic rationalisation of the cost, while also adding to the company’s top line,” he added.
Operational metrics
EOGEPL doubled its coal bed methane (CBM) production to over 0.8 million standard cubic meters per day (mscmd) after the commissioning of the Urja Ganga Pipeline with the availability of 100 per cent gas offtake further buoyed by continued tailwinds in global gas prices.
At present, the company is operating around 350 wells in the block and has taken up a systematic approach of well revival through the adaptation of world-class technology and stimulation techniques, including re-fracs and close monitoring to enhance gas production from the existing wells.
Also read:Reliance seeks $12.75 for CBM gas, ONGC wants $9.35
“EOGEPL maintains robust momentum to remain the leader in the unconventional space with a clear road map to double its CBM reserve base and increase production from the block to over 3 MSCMD in the coming years,” it said.
The company has roped in globally renowned service providers and technical consultants to roll out a phased growth program to achieve these objectives. The program includes the drilling of new directional and horizontal wells and expeditious development of the Deeper CBM Area of the Raniganj block.
EOGEPL is also working towards opening up new frontiers, one of them being shale gas exploration, which will help the company consolidate its position as one of the largest unconventional hydrocarbon players in the region.
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