Essar Oil finds more gas reserves at Raniganj CBM block

Essar oil, a subsidiary of Essar Energy, today said the proven and probable reserves as also contingency resources at its Raniganj coal bed methane (CBM) exploration block in West Bengal has significantly increased, which has also been independently verified.

The total proven and probable reserves (2P) at Raniganj, evaluated as of 1 September 2011, was 113 billion cubic feet (bcf) gross or 18.8 million barrels of oil equivalent (mmboe), while best estimate contingent resources (2C) are 445 bcf, or 74.1 mmboe

Essar Oil had earlier, in December 2009, projected proven and probable reserves at the Raniganj CBM block at 201 bcf or 34 mmboe of 2C resources.

Both these evaluations were carried out by independent international consultants, Netherland, Sewell and Associates Inc (NSAI), Essar Oil said in a release. 

The latest evaluation also shows that there also remains 297 bcf gross, or 49 mmboe of best estimate prospective resources of gas at Raniganj, it said.

"This revised evaluation of gas resources at Raniganj underlines the potential of the block. Gas is in short supply in India but will be an increasingly important fuel and we are well placed to capitalise on that," Naresh Nayyar, deputy chairman of Essar Oil and CEO of Essar Energy, said.