GEECL’s licence area covers 210 sq. kms. (52,500 acres). 100 production wells will be drilled and completed in the first phase, and upto another 200 wells in the second phase. A 5-well cluster pattern will be followed for drilling the wells. GEECL is exploring the option of drilling directional / deviation wells, which could reduce number of wells required and also increase recovery as well as production rate. The wells are connected by an internal MDPE pipeline network going into appropriate Gas Gathering Stations and then feeding the gas into the external steel pipelines.

GEECL is present across the entire CBM value chain, i.e., Upstream, Midstream, and Downstream.

Marketing

As per the Sub Group Committee Report on Natural Gas, the demand for gas in India is estimated to grow from 180 MMSCMD (6,356 MMSCFD) in FY10 to 280 MMSCMD (9,887 MMSCFD) in FY12. Against this, considering the availability of gas from all sources, the estimated Demand - Supply gap works out as 50 MMSCMD (1,766 MMSCFD) in FY10 and 80 MMSCMD (2,825 MMSCFD) in FY12.

The above estimates by the Sub Group Committee Report on Natural Gas are widely considered to be conservative. Industry estimates suggest that the actual Demand - Supply gap is significantly higher. CBM will supplement indigenous & conventional gas supplies, in meeting the growing demand supply. An extensive market survey has already been carried out for the license area. The current demand for gas in the total proposed license area (including Asansol and Durgapur) is estimated at 4 – 5 MMSCMD (140 – 175 MMSCFD), which is much higher than the Company’s peak expected production level.

Milestones

• Dec 1992 - Received Government of India approval
• Dec 1993 - Obtained the licence from Coal India Limited (CIL)
• Jan 1994 - Paid signature bonus of over US$ 300,000 to CIL
• 1994 to 1997 - Core-hole exploration, and tested commercial viability
• 1998 - CBM administration shifted from Ministry of Coal to Ministry of Petroleum
• Sep 1998 - Submitted application for Petroleum Exploration Licence
• May 2001 - Production sharing contract signed with the Ministry of Petroleum and Natural Gas
• Nov 2001 - Petroleum Exploration Licence was granted
• Apr 2002 - Started 3-pilot production well program
• Jan 2004 - Struck gas in the first well
• July 2004 - Gas observed in all the wells
• Dec 2005 – First Indian Company to float on London AIM Stock Market
• Jan 2006 – Commenced commercial drilling program for 20 production wells.
• December 2006 – All 20 wells drilled and completed
• January 2007 – Finished installing Pumps (PCP) in 20 wells
• July 14, 2007 - Commenced sales
• January 2008 - Commissioned brand new rig (Atlas Copco RD 20 III) and commenced further development program