Essar Oil begins CBM exploration at Raniganj

Vol 9, PW 17 (01 Dec 05) News in Brief

Essar Oil begins drilling its first set of coreholes for coal bed methane sometime in the middle of this month.

A source tells this report that Essar will deploy its own rig at Raniganj on block RG (East)-CBM-2001/1, which measures 525-sq km. Essar is currently in Phase-I of the work programme on this block and is committed to drill 12 coreholes and some vertical wells.

The coreholes are being drilled to gather information on the depth and thickness of the coal seam, gas content, porosity and other key parameters. We learn that plans are to spend about Rs30cr in Phase-I, which will end in March 2007.

Instead of the vertical wells, Essar wants to drill horizontal wells and then convert them to multilateral wells. They plan to seek permission from the DGH to effect this change in the work programme, we are told.

Essar will use multi-seam, multi-lateral, horizontal well drilling technology from Gardes Energy of the US.