Deep planning â€کcluster' production of CBM at Singrauli

Vol 12, PW 22 (09 Apr 09) Exploration & Production

Ahmedabad-based CBM newcomer Deep Industries is confident it can begin producing gas after it drills the first five of its planned 100 production wells in the coal-rich Singrauli district of Madhya Pradesh.

“We will not wait for 100 wells to be drilled,â€‌ Deep chairman Paras Savla tells PETROWATCH. “As soon as five production wells are ready we will form a â€کcluster’ and set up a small GGS (Gas Gathering Station) to start monetising the gas.

â€‌ On site, heavy rains coupled with hard formations at the 336-sq-km CBM block SR-CBM-2005/III in Singrauli have forced Deep to slip behind schedule with its eight core hole commitment. “Work which normally takes 15 days takes more than a month in Singrauli,â€‌ adds Savla.

“Drilling a core-hole should typically take one and a half months but at Singrauli the hard formations were not anticipated.â€‌ Coupled with hard formations, heavy rains played havoc with Deep’s plans and delayed its target to spud the first CBM core hole on July 15 last year – two months after it secured a PEL from the Madhya Pradesh state government on May 20.

“Heavy unexpected downpours washed away the roads, well pits and pads,â€‌ says Savla. “Singrauli is a very remote area.

â€‌ Savla adds Deep has developed a strong base with a group of engineers and geologists posted on site, with drilling of a second core hole planned this month (April). Longer term, Deep has begun talks with several power companies to sell CBM from Singrauli, where the DGH estimates gas reserves at 31bn cubic metres from coal-seam thickness of 5 to 25 metres and gas content at 4 cubic metres per tonne.

“We have also started discussions with Indian Oil on a joint marketing programme,â€‌ says Deep. “But this is still at a very early stage.

â€‌ Deep (90%) and US based Coal Gas Mart (10%) signed a PSC for the Singrauli block on November 7, 2006 and have committed eight core holes, five pilot wells and 15 test wells.