India's GEECL Reports Drop in Profit
India-focused coalbed methane (CBM) explorer Great Eastern Energy Corporation (GEECL) June 2 said its net profit for the 12 months ending March 31 was $6.99mn, down 29.6% yr/yr owing to lower gas sales volumes.
Sales volumes stood at 10.38mn ft3/day, versus 11.48mn ft3/day in the year before. Revenues during the year were $36.25mn compared with $40.33mn in the previous year, the London-listed firm said.
GEECL's gas sales were effected in April due to the national lockdown that came into effect late-March. However, with relaxation in the lockdown and gradual opening up of the Indian economy, the company's gas sales in May have picked up. It expects sales to be at pre-lockdown levels by July.
Meanwhile, the company said it had obtained the environment clearance for starting its shale exploration programme and continued the process of obtaining the remaining final approvals.
“The company is engaging with various vendors for commencing the shale programme. Subject to the results obtained and analysed from the core wells, the company intends to drill an optimum number of pilot production wells,” it said.
GEECL plans to invest $2bn for the full development of shale resources in its east Raniganj (South) CBM block in the east Indian state of West Bengal. In 2018, the government of India tweaked the rules to permit exploration and exploitation of all types of hydrocarbons including shale resources under the existing CBM contracts.