Essar's Raniganj CBM Reserves Evaluated Higher

Essar Oil’s coal bed methane reserves at Raniganj have risen significantly, the company said Monday.

The total proven and probable reserves (2P) at Raniganj, evaluated as at September 1, 2011, are 113 billion cubic feet (bcf) gross, or 18.8 million barrels of oil equivalent (mmboe).

The company also said that its best estimate contingent gas resources at the block have been increased to 454 billion cubic feet, from the previous evaluation of 201 billion cubic feet in December 2009.

Naresh Nayyar, Deputy Chairman-Essar Oil and CEO-Essar Energy, said: “This revised evaluation of gas resources at Raniganj underlines the potential of this block.”

Current production at Raniganj is around 22,000 standard cubic metres of gas per day, reduced to minimise flaring while test sales through a 48 kilometre pipeline to the Durgapur industrial estate are continuing. Progress towards full commercial production is continuing and peak production is expected to be 3.5 million scm/day.

Raniganj covers 500 square kilometres in which Essar Oil has a 100% interest.

Overall, Essar Oil has the largest acreage of CBM blocks in India, with a total of 10tcf of gas resources across five blocks.