Deep to complete Singrauli Phase-I by November

Vol 14, PW 2 (15 Jul 10) Exploration & Production

Ahmedabad-based Deep Industries is set to complete its Phase-I exploration commitment at the 330-sq km Singrauli CBM block SR-CBM-2005/III by this November, a clear sign it has recovered from the acute disappointments of the last licensing round.

PETROWATCH learns Deep completed its sixth committed Phase-I corehole and the ‘non-core’ portion of the seventh corehole in June. It has now begun drilling the eighth and final corehole.

“Non core drilling at all wells is nearly complete,” confirms a company source, “and core drilling operations are underway at two wells (the seventh and the eighth).” All coreholes have been drilled to 1000-metres depth, he adds.

Deep’s next step will be to begin drilling five Phase-I committed test wells by the end of July. “We are finalising sites for two test wells based on results at previously drilled holes,” says Deep.

But it has yet to finalise locations for the three other planned test wells. Deep has meanwhile applied to the DGH for an extension to Phase-I, which expires this month.

“Phase-I was delayed because even after we received the Singrauli PEL (on May 19, 2008) from the Madhya Pradesh government,” Deep explains, “we had to face several daunting issues.” These included delays in getting statutory clearances, land acquisition problems and heavy rains which hit the area in 2008.

“But despite the odds our consortium has managed to drill seven wells successfully,” says Deep. Deep (90%) partners US-based Coal Gas Mart (10%) at Singrauli and the PSC was signed on November 7, 2006 for 34.5 years.

Deep is also studying Singrauli’s sub-surface geology to determine the block’s production profile. It has been taking corehole samples, conducting ‘gas desorption’ studies, and carrying out logging operations.