Dart to relinquish another useless CBM block

Vol 15, PW 6 (22 Sep 11) Exploration & Production

Brisbane-headquartered Dart Energy might soon be relinquishing another CBM block after disappointing test well results.

PETROWATCH learns Dart, formerly Arrow Energy, is disappointed with its Chhattisgarh CBM block TR-CBM-2005/III, after results from five test wells revealed negligible quantities of gas. However, Dart has yet to formally apply to the DGH to relinquish this block.

“Dart may submit its application for relinquishment in another 10 days,” confirms a source. Dart, he adds, sent letters in the first week of September seeking the consent of partners GAIL, Sweden’s EIG and Mumbai-based Tata Power.

“Dart sent us a letter,” confirms a consortium partner on September 13. “Our consent to relinquish the block will be given as we haven’t found a measurable quantity of gas; the block isn’t economically viable.

” The TR consortium, he adds, informally decided not to enter the two-year Phase-II when Phase-I ended in March 2011, because of poor test results. Dart proposed relinquishment to its partners on July 23 at the last Operating Committee meeting before following this with formal letters seeking their approval.

This will be the third CBM block relinquished by Dart after Chhattisgarh CBM block MR-CBM-2005/III and Jharkhand CBM block RM-CBM-2005/III, where it also partnered EIG and GAIL. “All these looked prospective from the DGH data,” we learn.

“But we found nothing when we began drilling. The data didn’t match the reality under the ground.

” At TR-CBM-2005/III, the consortium has spent approximately Rs32.85cr ($71.3m) on drilling eight coreholes and five test wells. According to DGH data, the Tatapani-Ramkola coalfield, spread across the 458-sq km TR block has CBM resources of 53.78bn cubic metres.

Tatapani-Ramkola lies in the ‘structural junction’ between the Damodar Valley and the Son Valley and Gondwana basin belts.

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