Deep marks July 15 date to spud first CBM core hole

Vol 12, PW 4 (10 Jul 08) Exploration & Production

Gujarat-based oil and gas minnow Deep Industries is ready to drill its first core hole at CBM block SR-CBM-2005/III in Madhya Pradesh.

Deep received the crucial Petroleum Exploration Licence (PEL) for this block on May 20 from Madhya Pradesh authorities and wasted no time in getting down to work. The first priority is to start drilling by July 15 on the eight core holes committed in the work programme.

“The rig is already on location,â€‌ we hear. “Each core hole will take about 15 to 20 days to drill.

â€‌ After the core holes, Deep begins drilling five pilot wells and 15 test wells. “We want to finish the entire committed drilling programme by the middle of next year,â€‌ Deep tells us.

Deep compares its swift performance with that of Reliance, also famous for its efficiency, and claims that it can do in one year the work Reliance took four years to complete. “We are a small company, unlike Reliance,â€‌ adds a source.

“This is the only thing we will be doing. So we are very focused in our work and cannot afford to waste time.

â€‌ Block SR-CBM-2005/III in the Singrauli coal belt measures 330-sq km. According to DGH data, coal seam thickness varies from 5 metres to 25 metres and gas content is 4 cubic metres per tonne (cm/t).

“Anything above 2cm/t should be fine,â€‌ we hear. “But these are estimates.

We’ll know the actual situation only after the cores are examined.â€‌ At Reliance’s CBM block at Sohagpur in Madhya Pradesh, “the DGH indicated gas content of 4cm/t, but after drilling, the actual number was between 1cm/t and 12cm/t.

â€‌ At Deep’s Singrauli block, coal seams lie at a depth of between 400 and 800 metres below the surface. DGH data with Deep also indicates â€کprognosticated’ CBM reserves of 1-tcf at Singrauli.