John Energy rig

Vol 15, PW 10 (17 Nov 11) News in Brief

Mukesh Ambani-controlled Reliance has extended John Energy’s CBM drilling contract at the 495-sq km Sohagpur East and 500-sq km Sohagpur West CBM blocks in Madhya Pradesh.

Reliance hired a 750-hp rig from John in November 2010 to drill 29 CBM production wells, with the ‘option’ to extend the contract for another 31 wells. Last month, Reliance extended the contract as expected but only for another 18 wells.

“John has already begun drilling the new wells,” says an industry source. “I expect it will complete drilling all the additional 18 (wells) by the end of February next year.

” This means Reliance will have completed nearly 90 wells across both blocks by next February, each of which could produce 10,000 cm/d of gas on average. “Reliance has begun ‘workover’ operations at 45 previously completed Sohagpur wells,” adds a source.

Reliance signed PSCs for these CBM-I blocks on July 26, 2006, which together have an established ‘gas resource base’ of 3.65-tcf.