Indian GEECL's 2018-2019 Profit Jumps
India-focused coalbed methane (CBM) explorer Great Eastern Energy Corporation (GEECL) May 14 said its net profit for the 12-months to March 2019 (financial year 2018-2019) was $9.93mn, up 57% year-on-year thanks to higher gas sales volume.
Sales volume rose 7% year-on-year to 11.48mn ft3/day while revenue was $43.64mn as against$38.75mn in the previous year, London-listed GEECL said.
"The revenues and sales volume continue to show good growth. We have a focused plan of further optimising production, as well as pursuing further exploration. With the continued growth of the Indian economy and stable government policies, demand for hydrocarbons in India continues to grow which is evident from the rising imports,” CEO Prashant Modi said.
GEECL said it is in the process of getting the final approvals and expects to start the initial shale gas exploration work by drilling core wells thereafter. Late last year, the company said it will start exploring for shale gas mid-2019 and invest $2bn for the full development of shale resources in its east India CBM block.
The government of India last year tweaked the rules to permit exploration and exploitation of all types of hydrocarbons including shale resources under the existing CBM contracts. The government says its policy will enable the realisation of prospective hydrocarbon reserves in the existing contract areas which otherwise would remain unexplored and unexploited.
GEECL said that its Ranijagnj (South) CBM block in the eastern Indian state of West Bengal holds estimated shale resource of 3.51 trillion ft3 under a best estimate - with high and low estimates of 6.63 trillion and 1.4 trillion ft3 respectively - according to an independent assessment by ARI.