Great Eastern Energy Corporation Reports Reserve Increase at Raniganj South
Junior energy company Great Eastern Energy Corporation Limited announced Wednesday that Proved reserves (1P) at the Indian Raniganj South license area increased 232 percent from December 31, 2013 to November 30, 2014.
Proved coal-bed methane gas reserves in the license area rose from 77.90 billion cubic feet to 259.10 Bcf during the eleven month period. Proved and Probable (2P) and Proved, Probable and Possible (3P) reserves also increased during the same timeframe, with the former rising 137 percent to 442.70 Bcf and the latter increasing by 87 percent to 543.40 Bcf.
The changes in 1P, 2P, and 3P reserves are a result of new wells coming on production in new areas and an increase in estimated recoveries based on historical production and the upward revision of OGIP (original gas in place), according to the company.
Great Eastern President and Chief Operating Officer Prashant Modi commented in a company statement:
"We are delighted that we are delivering on our strategy of optimizing production from existing wells and continuing to build on our resource potential. The substantial increase in reserves, with a 3P NPV (net present value) of $1.09 billion, are third party fully verified and endorse the strength of our growth strategy. The supply/demand balance for gas in India is still strong and we are seeing continued interest from new industrials customers, for which we are very well positioned to deliver."
Coal-bed methane is an unconventional source of natural gas that countries all over the world, including the US, the UK, Australia and China, are currently exploring. Natural gas in a coal reservoir is stored differently to a conventional reservoir. The gas in the coal is held in place by the pressure of surrounding water and rock. Simply drilling through a coal seam allows this natural gas to be pumped out.
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