Essar plans 200 horizontal wells at Raniganj
Essar is preparing to drill 200 horizontal CBM wells at its producing RG (E) CBM-2001/1 or Raniganj East CBM block in Durgapur in West Bengal.
A well-placed source tells us Phase-III development will begin within the next 35 to 40 days or by early May 2024. "Drilling locations have been identified," he says.
"Seros Energy has mobilised five (CBM) drilling rigs." Essar believes the horizontal well drilling programme will likely cost up to Rs2000cr ($250m) and take 26-30 months to complete.
Raniganj East currently produces around 1m cm/d (35m cf/d) of CBM from 350 wells drilled for Rs5000cr ($625m) during Phase-I between 2011 and 2016. "Raniganj East CBM production now accounts for 1.2% of India's total gas production," we hear.
Essar launched Phase-II in early 2023 with plans to drill 200 vertical wells for about Rs1500cr ($187m). "Sixty-five Phase-II wells have been drilled; Essar is drilling the remaining 135," we hear.
"They will be completed over 15 months; Phase-II and Phase-III will be carried out in parallel." Our source adds Phase-I and Phase-II focused on 100-sq km of the 500-sq km block, while the horizontal wells proposed in Phase-III will be drilled in the remaining 400-sq km.
Raniganj East holds 4-tcf of in-place CBM resources, according to reserves consultants DeGolyer & MacNaughton. "Of this, 1-tcf is in the 3P (proven, probable and possible reserves) category," we hear.
"Drilling horizontal wells is expected to push the 3P category up to 2-tcf." In addition to CBM, Essar is exploring Raniganj East's shale gas and oil potential.
Three core wells were drilled in 2023 to 2300 metres TD, each costing Rs8cr ($1m). Essar plans to drill three more in 2024, each to 3000 metres, for Rs10cr/well ($1.25m).
"Locations for these three are being finalised," we hear. Based on the core well results, Essar could drill one shale test well in 2025.
If that happens, expect a tender for two more land rigs for the core wells and a single test well.