Essar Oil and Gas Exploration and Production Limited plans to consolidate its position as one of the largest unconventional hydrocarbon players at Ranigunj coal bed methane (CBM) block in West Bengal, a spokesperson of the company said on Monday.
The company had already invested around Rs 5,000 crore in exploration and commercial development of the Ranigunj CBM block where nearly 350 wells have been commissioned.
“The company is working towards opening up new frontiers, one of them being shale gas exploration. This will help the firm in consolidating its position as one of the largest unconventional hydrocarbon player in the region”, the spokesperson said.
During the fourth quarter of the last fiscal, the company posted a net profit of Rs 83 crore on a revenue of Rs 190 crore, with EBITDA touching Rs 140 crore.
According to the spokesperson, the company plans to invest another Rs 2000 crore in the next 18 to 24 months for drilling 200 more wells. With its Ranigunj block, the company’s contribution to total CBM production in the country is 65 per cent. “This will go up to 90 per cent post the drilling of additional wells”, he added.
The spokesperson said that the key priorities charted out by the company are field upgradation, induction of new technologies, optimisation of cost and enhancement of production.
The company produces 0.84 million standard cubic meters of gas per day (mmscmd) with 100 per cent offtake.
Plans are there to take the daily production levels to three mmscmd, he said.
Originally posted: Moneycontrol