Procedural delays seem to have impacted the progress of Dart Energy's coal-bed-methane hunt in Madhya Pradesh (Satpura) and Assam. The company had previously aimed to launch exploratory drilling campaign in both the blocks by November.
According to sources, the Australia-headquartered company is still awaiting environmental clearance from the Union Government to start drilling core holes – a precondition to drill pilot wells – in Madhya Pradesh block.
Core hole drilling allows exploration companies to collect samples of coal reserves under the earth. According to sources, Dart has completed the formalities, including the public hearing, necessary for environmental clearance in August.
High-quality reserve
Satpura is a recycled block previously relinquished by ONGC. Dart sources, however, suggest that the block has high quality Gondwana coal reserve.
Also, the presence of second-degree gassy mines (2-10 cubic metre gas content per tonne of coal) in the region suggests that the block may be ideal for CBM exploration. While Dart controls 80 per cent operating interest in Satpura, Tata Power has 20 per cent participatory interest in the block.
Meanwhile, the company is still awaiting the award of exploration licence (PEL) for the block due to inordinate delay on the part of the State Government to complete due formalities. The environmental impact assessment for the project was over a few months ago.
Dart holds 60 per cent operating interest in the Assam block having hugely gassy tertiary coal of low (10 per cent) ash content.
Apart from methane, this particular variety also has high sulphur content – which is a corrosive agent – requiring desulphurisation for industrial use.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.