India’s Deep Industries Looks to Farm Out Interest in Madhya Pradesh CBM Block
India’s Deep Industries Ltd is planning to farm out up to 50 per cent participatory interest in Singrauli coal bed methane (CBM) block in the state of Madhya Pradesh, Business Line said in a report. The company holds 90 per cent participatory interest in the exploratory asset.
Deep Industries was awarded with two blocks — Singrauli in Madhya Pradesh and Godavari Valley (North) in Andhra Pradesh — in consortium with the US-based Coal Gas Mart during the third bidding round in 2006. Coal Gas Mart is operator in both the blocks.
Sources told Business Line that the company was scouting for partner for the Singrauli block for nearly one-and-a-half years now, and had approached other E&P companies as well as a number of user industries such as power.
The DIL-Coal Gas consortium has reportedly drilled nine core holes and five production wells in the Singrauli block in the first phase of the minimum work programme. The wells are still in de-watering phase and yet to start producing gas. Work is on to certify the explored reserve.