Jubilant in Tripura reserves row with DGH

Vol 17, PW 7 (31 Oct 13) Exploration & Production

Jubilant Oil & Gas is locked in battle with the DGH over its decision to label the Kathalchari-1 gas discovery in Tripura commercially unviable.

Jubilant made the discovery in 2010 and submitted a Declaration of Commerciality (DoC) in December 2012 after drilling two appraisal wells, putting reserves in-place at 1.2-tcf and recoverable reserves at 128-bcf. But at a management committee meeting on August 5 this year the DGH decreased the discovery's estimated recoverable reserves by 60% to 50-bcf.

"The DGH is happy with in-place reserves but is not ready to approve the recoverable reserves estimates,” says a consortium source. He adds the consortium carried out Modular Dynamic Testing (MDT), which measures initial reservoir pressure but the DGH wants Drill Stem Testing (DST) to measure average reservoir pressure.

In September, Jubilant and partner GAIL met joint secretary exploration Aramane Giridhar asking that their figures be accepted. “Giridhar said the consortium should hold a technical committee meeting with the DGH," we hear.

"We have written to the DGH twice but they are not giving us a time to meet.” A DGH official defends its decision.

“Gas did not flow on its own to surface," he says. "If the reserves have as much gas as Jubilant is claiming why didn’t it flow to surface” Jubilant and GAIL are confident about their recoverable reserves estimate.

“We tested the well flow for 24 hours but the DGH wants us to test the flow for seven days."

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