Essar Oil, the largest acreage holder of CBM blocks in India, has reported that the proven and probable reserves and best estimate 2C contingent gas resources at its Raniganj CBM block in West Bengal have been significantly increased. The total proven and probable reserves at Raniganj, evaluated as at 1 September 2011, are 113 bcf gross, while best estimate contingent resources are 445 bcf gross.
Consequently, Essar’s share price on Jan 23 was GBX 135.6, up by 13.1%.
Also, gas is in short supply in India but will be an increasingly important fuel and through this revised estimation of reserves Essar is well placed to capitalise on that.
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